Gulf Mushroom to lift compost capacity by 50%

MUSCAT: Gulf Mushroom Products Co (SAOG), a publicly traded Omani agribusiness, has approved a 50 per cent expansion of its compost production capacity, lifting annual output from about 20,000 tonnes to 30,000 tonnes, in a move to secure the key raw material behind its mushroom cultivation.

The company’s board approved the project at a meeting held earlier this week, according to a disclosure filed with the Muscat Stock Exchange (MSX). The expansion is expected to be completed and commercially operational by December 31, 2029. The company described it as part of a strategy to strengthen production capabilities and support future growth.

Gulf Mushroom produces its own phase-3 compost at a plant in Thamrait, Dhofar Governorate, which the company says has an annual capacity of 20,000 tonnes. The company has said the plant reduces its dependence on imports and shields it from global supply chain disruption, and that compost quality feeds directly into yield ratios, production costs and margins.

The compost project follows a third expansion of growing capacity at Barka, commissioned early this year. Six new cultivation rooms are expected to lift daily output to between 21 and 23 tonnes, from 18 to 20 tonnes in 2025.

At the same meeting, the board approved unaudited results for the six months to June 30, showing net profit after tax of RO 1.663 million, up from RO 1.174 million a year earlier — a rise of almost 42 per cent.

The company posted revenue of RO 12.009 million for 2025, up 6 per cent, and net profit of RO 2.342 million, up 20 per cent. Production reached 7,072 tonnes, a 5 per cent increase, while exports of RO 10.644 million accounted for 89 per cent of sales.

Established in 1997 and listed on the MSX, Gulf Mushroom operates what it describes as the largest hi-tech mushroom farm in the Middle East, using Dutch technology at its Barka site. Its produce is sold under the Mushroom Oman brand across the Middle East and Far East. It employed 172 Omani nationals at the end of 2025, or 35 per cent of its workforce.