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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Major strategy to monetise Oman’s date palm resources

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Muscat, JAN 27 - The Ministry of Agriculture and Fisheries has outlined an ambitious strategy to harness the optimal commercial potential of the Sultanate’s rapidly expanding date palm resources.
To this end, it has identified opportunities for investment in, among other areas, the manufacture of date derivatives, wood processing activities utilising palm trees and wood byproducts, and fodder processing as well. Total investments in projects envisioned across all aspects of the date palm processing value chain are in the order of RO 50 million.
An overview of the investment opportunities linked to the date palm sector was outlined at the Agriculture, Fisheries & Food Investment Forum (AFFIO) held in the city last week.
While some components of the overall investment strategy have already been structured into viable businesses, others have garnered investor interest or are the subject of feasibility studies.
Already having made headway in its development as a commercial entity is Oman Dates Production and Packing Company, which has been set up by Oman Food Investment Holding Company (OFIC) — the food sector investment arm of the Omani government. A number of private sector companies, investment funds and pension funds, besides OFIC, are participating in the equity of the estimated RO 28 million investment.
Besides investing in the collection, storage and packing of dates, the project will also process the fruit to produce date syrup, paste and other products. Production is anticipated in 2022.
Separately, the Ministry has proposed the establishment of an integrated industrial complex designed to manufacture a range of derivatives from dates, including liquid sugar, medical and industrial alcohol, vinegar, fodder, and even carbon dioxide gas.
Feedstock for the project will come in the form of low quality dates, which will be processed to produce high-value derivatives. The industrial complex itself is proposed to come up in the Wilayat of Suhar, with date collection centres planned in the wilayats of Al Suwaiq and Al Khabourah. A detailed feasibility study into the project has already been completed, with investments estimated at RO 11.5 million, according to the Ministry.
Authorities also envision significant commercial potential in the processing of palm tree by-products to manufacture compressed or compacted wood. Feasibility studies have indicated that a blend of palm fronds, date palm trees and waste from mesquite trees can serve as an important raw material in the manufacture of medium-density fiberboard (30,000 tonnes/year), moulded wooden pallets (600,000 units/year), and pre-fabricated doors (3,000 units/year). The proposed wood processing plant is anticipated to come up in Suhar Industrial Estate with an estimated investment of RO 5.5 million.
Also promising is the potential for fodder processing from by-products of palm trees. The project envisages the use of palm fronds as a by-product and residues of dates, such as date’s seeds, low quality dates and other wastes, in the manufacture of an “alternative rough fodder in the form of tablets to be used in feeding ruminants after being exposed to chemical treatments using urea and steam to improve their nutritional value”. The Ministry sees the potential for a 15-tonnes per hour capacity fodder manufacturing facility to be established in Sohar Industrial Estate at a cost of RO 3.1 million.
Besides advancing food security and supporting employment creation, the four proposed ventures will help protect the environment, enhance sustainability, and bolster the agriculture sector’s contribution to the GDP, the Ministry added.



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