(MENAFN- Muscat Daily) Muscat- 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, has been granted 1,500 hectares of land by the Ministry of Housing for its Mazoon Dairy Company in Buraimi.
The Ministry of Housing represented by the Directorate General of Housing in Buraimi Governorate and Mazoon Dairy Company officials signed a usufruct agreement for land in the wilayat of Al Sininah in the Governorate of Buraimi, last month. The agreement is for ten years and renewable thereon for a total area of about 15mn sq m.
According to the company, Mazoon Dairy is the flagship dairy project of Oman. The project has a capital outlay of RO100mn with a debt-equity mix of 50:50. OFIC's contribution in the equity is 20 per cent.
The farm will start with approximately 4,000 cows in 2017, which will grow to a herd size of 25,000 cows by 2026. The project is expected to start commercial production in 2017.
Mazoon Dairy Co 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 2014 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.
Khamis al Abdulsalam, director general of Housing, Buraimi governorate, said that the project aims to enhance food security and diversify the local economy. 'The location of the project is best suited as it provides the right climate and infrastructure for it to become successful.'
He added that the project will create jobs and improve economic situation as well as foster food security of the sultanate.
To address the feeding requirements of cows, which is expected to be around 25,000 in ten years, OFIC is planning to invest inside as well as abroad Oman 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 three 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 to promote production of red meat in Oman.
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