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Dhofar in action as two Oman food companies launch fish, dairy plants

Dhofar Fisheries reveals $26m facility with Sezad as Al Murooj inks deal for 4ha dairy plant in the governorate

Al Murooj Dairy Co's cow and camel milk project in Dhofar is one of the two food projects announced in Oman early in January 2019 [representational image].
© Pixabay / Couleur
Al Murooj Dairy Co's cow and camel milk project in Dhofar is one of the two food projects announced in Oman early in January 2019 [representational image].

Development progress has been made on two major construction projects by Dhofar food companies as Oman marches ahead with sizeable investments in the food security sector.

Dhofar Fisheries and Food Industries has signed an agreement with Oman’s Special Economic Zone Authority of Duqm (Sezad) to develop a $26m (OMR10m) plant within the free zone.

READ: Oman opens $13m starch factory

Spanning 4.1ha, the fish packaging and fish oil production plant is due to be operational in 2020. By the time it opens, it will have a production capacity of more than 27,200 tonnes.

Chairman of the board of Sezad, Yahya bin Saeed Al Jabri, signed the agreement with Mahdi Hassan Hassani, chairman of Dhofar Fisheries & Food Industries’ board.

News of the fisheries plant came on the same day as Al Murooj Dairy Company’s agreements with major suppliers for a dairy collection and cooling project in Dhofar.

What Al Murooj Dairy Co will build

The dairy project will allow for milk to be purchased from livestock breeders in the Dhofar governorate, and have facilities to cool and process the milk for dairy products. Upon completion, Al Murooj Dairy Co’s plant will have an aggregated capacity of 19,027 litres per day of cow milk, and 7,827 litres of camel milk every day.

Al Murooj signed a deal with Al Manarah Engineering Consultancy Co to provide engineering design, qualification, and contractor supervision work. Another deal was inked with Dhofar Cattle Feed Co to provide fresh milk to the Dhofar company, which will market the raw material as its final product.

Dr Nasser bin Ali Bait Said, chief executive officer of Al Murooj Company, said milk collection and cooling centres will start operations in H2 2019, with various such facilities to open in succession. Phase 1 of this launch programme will complete at the end of 2020, and expansion within other wilayats of Oman will start in 2021.

READ: Grain storage facility worth $34m planned for Sohar Port

Al Murooj Dairy Co has been established as a closed joint-stock firm for the implementation and operation of the project, with Oman Food Investment Holding Co (OFIHC) and Oman National Livestock Development Co respectively contributing 60% and 30% each. Meanwhile, Dhofar Cattle Feed Co and Arab Authority for Agricultural Investment and Development will each contribute 20% capital for the project, according to Oman’s state news agency, ONA.

Commenting on the development, the Al Murooj Co chief said: “This project is one of the food security projects of the sultanate which was launched within the framework of the efforts of the Ministry of Agriculture and Fisheries through the [OFIHC] to take the traditional production processes to the best international practices.”

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Construction Week - Issue 744
Jun 15, 2019