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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Dhofar dairy firm to procure locally produced camel and cow milk

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Jomar Mendoza -
Muscat, JAN 8 -
In a further boost for Dhofar’s thriving dairy industry — and for Oman’s food security objectives as well — Dhofar Cattle Feed Company SAOG, the leading player in the governorate, has signed a deal for the purchase of camel and cow milk from the recently launched Al Murooj Dairy Company SAOC.
The purchase agreement is for two years, but can be renewed further, Salim Ahmed al Kathiri, GM — Operations at Dhofar Cattle Feed Company, said in a filing to the Capital Market Authority (CMA). The agreement is linked to a pilot project supported by the government for the collection of camel and dairy cows’ milk from livestock breeders in the governorate, he said, adding that the company will manufacture and market the products under the Al Safwa Dairy brand.
Dhofar Cattle Feed Company, which is publicly traded on the Muscat Securities Market, has contributed RO 200,000 towards the paid-up capital of Al Murooj Dairy Company amount to RO 1 million. It consequently owns a 20 per cent stake in the latter.
“The project is likely to start production from August 2019. We hope that this cooperation will be beneficial to all the stakeholders, including the livestock breeders in the region,” Al Kathiri added.
Al Murooj Dairy is part of a portfolio of projects being developed by the wholly government owned Oman Food Investment Holding Company (OFIHC) to help advance the Sultanate’s food security goals. OFIHC and Oman National Livestock Development Company hold 30 per cent apiece in the capital of Al Murooj. Dhofar Cattle Feed Company and the Arab Authority for Agricultural Investment and Development (AAAID) have a 20 per cent share apiece as well.
The project will purchase milk from livestock breeders in the Governorate of Dhofar, cool and process it to the required dairy products in the market. The aggregate capacity of the project is estimated at 19,027 litres per day of cow milk and 7,827 litres/day of camel milk.
Earlier this week, Al Murooj Dairy Company signed agreements for the design and supply of equipment for its milk collection and processing project in Dhofar. IDMC Limited of the Dairy Development Board of India will provide the technology and laboratory instruments for testing the quality of milk before it is received from the livestock breeders.
Under a separate agreement, local firm Al Manarah Engineering Consultancy Company will provide the engineering design and supervision of all engineering work linked to the project.
The project will purchase milk from local livestock breeders, cool and process it to the required market standards. The aggregate capacity of the project is estimated at 19,027 litres per day of cow milk and 7,827 litres per day of camel milk.



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