On the back of enhanced adoption of advanced farming technologies and conducive government policies, agriculture production in Oman has seen substantial growth in the last two years.
“Despite Covid-19 pandemic, the agriculture and fisheries sector saw a growth of 9.8 per cent in 2019-2020. Hence, Oman’s agriculture market witnessed impressive growth during the pandemic”, according to a report quoting the Ministry of Agriculture, Fisheries and Water Resources.
In its forecast for the period between 2021 and 2026, Reportlinker.com projects the Agriculture in Oman to register a compound annual growth rate (CAGR) of 2. 4 per cent.
“The increase in the adoption of advanced farming technologies and conducive government policies supporting domestic crop production are some of the factors driving the market growth in the country”, the report points out.
Oman majorly meets its domestic fruits, vegetables, and cereals demand through imports. Therefore, to reduce import dependency, the country is aiming for self-sufficiency in agricultural products by encouraging its farmers to adopt advanced farming techniques.
Agricultural production of Oman constitutes mainly dates, vegetables, fruits and other crops in a minor quantity. According to FAO, the total amount of agricultural land present in Oman was about 1.4 million hectares in 2019, 1.5 per cent of the total land area.
Due to the rising disposable incomes, people in Oman are presently more focused on healthier diets, with more fruits and vegetable inclusion. Additionally, with the increasing expat population in Oman, there is a shift in the traditional dietary habits towards organic food.
“This is anticipated to influence vegetable production in the country. Moreover, the interest in wellness and immunity has spiked as a result of the Covid-19 pandemic, leading to a higher demand for fruits and vegetables in the domestic market and in partner countries. This factor is likely to have a significant impact on market growth”, points out the report.
According to the report named Agriculture in Oman - Growth, Trends, Covid-19 Impact and Forecast, dairy consumption is likely to witness the fastest growth, followed by cereals consumption.
While the consumption of cereals is set to rise due to its prominence in the daily meal, Furthermore, the demand for dairy and cereals is likely to be supported by tourist arrivals anticipated to increase on the back of the government‘s plan to strengthen the tourism sector through the development of tourist spots and by encouraging private investments.
The reliance on imports has further increased with the growing demand for high-quality produce.
“Thus, with the rising demand for animal-sourced protein, fruits, and vegetables, the government’s support to ensure a sufficient supply of commodities influences the agriculture market in Oman. Thus, the market is projected to record a healthy growth rate during the forecast period”, says the report.
On the other hand, the distribution network and retails chains, with respect to agriculture, are expanding consistently in Oman.
“The Omani retail industry is characterised by strong consumer demand, robust economic growth, distinct demographic factors, and a high-end technology system that ensure better customer service and efficient customer checks”, adds the report.
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