Mazoon Dairy company to become operational by August 2018: ISFU

July 02, 2017

Mazoon Dairy, Oman’s premier dairy company founded under the National Food Security initiative of the sultanate, is likely to begin commercial operations by August 2018 and offer close to 1,000 jobs by 2020, stated Implementation Support and Follow-Up Unit (ISFU).

Promoted by Oman Food Investment Holding Company (OFIC), a state-owned enterprise mandated to promote the sultanate’s food security and implementing four major projects at a cost of RO270mn, Mazoon Dairy will have a capital outlay of RO100mn. The project is expected to increase Oman’s self-sufficiency in milk production from current 31 per cent to more than 130 per cent by 2040.

ISFU, which was established by a Royal Decree in 2016 and reports to the Minister of Diwan of Royal Court, stated that Mazoon Dairy, one of the National Program for Enhancing Economic Diversification initiatives, will be located in Al Sininah in Buraimi. It further said that the project is currently in the construction and installing equipment stage, and is expected to be ready by August, 2018.

ISFU said that construction of the farm building will begin this month and later on work will progress in installing machinery and equipment, hosting livestock and forming the organisational structure.

The project was granted 1,500 hectares of land by the Ministry of Housing in Buraimi in November last year.

The farm will start with approximately 4,000 cows in 2018, which will grow to a herd size of 25,000 cows in ten years.

Mazoon Dairy will produce approximately 202mn litres of milk by 2026 and 985mn litres by 2040. This, along with increase in existing production and the new milk collection scheme being promoted, will reduce the import dependency from 69 per cent in 2015 to 13 per cent in 2026. Net import could become negative in 2040 allowing Oman to become a net exporter of dairy products, the company stated.

To address the feeding requirements of cows, OFIC is planning to invest inside as well as abroad for commercial hay and fodder production.

“Possible locations for the project could be Sudan, Spain and California where there is plenty of water and other natural resources which would support a project of this nature,” OFIC stated.

OFIC’s other projects under development include Al Namma Poultry Company, a project to collect and manufacture dairy products that will be established in Dhofar, and Al Bashayer Meat Company, a project related to the production of red meat in Oman.