Contract farming poised for strong growth in Oman
Published: 04:07 PM,Jul 01,2024 | EDITED : 08:07 PM,Jul 01,2024
Contract farming is helping Omani producers of dates, wheat, and fresh cow & camel milk earn sustained incomes for their produce.
MUSCAT, JULY 1
Hundreds of Omani farmers are benefiting from contractual arrangements that enable their farm produce – primarily wheat, dates, and cow and camel milk – to be procured by government-backed food sector companies.
Oman Food Investment Holding Company (Nitaj), the food sector development arm of Oman Investment Authority (OIA), also foresees the potential for contract farming to encompass locally cultivated vegetables and fruits – a move that will potentially benefit thousands of Omani growers across the country.
Currently, taking the lead in partnering with Omani farmers are three Nitaj subsidiaries - Nakheel Oman Development, Oman Flour Mills, and Al Morooj Dairy, according to Mohammed bin Suleiman al Harthy, CEO – Nitaj.
“Our commitment extends beyond internal improvements to actively engage and strengthen our role within the local community. Nitaj implemented contract farming, a cooperative model with local farmers that not only utilizes their products but also supports their enterprises. This approach has been successfully integrated into several of our operations, including Nakheel Oman Development, Oman Flour Mills, and Al Morooj Dairy, benefiting from local resources like dates, Omani wheat, and fresh cow & camel milk from Dhofar's pastures,” Al Harthy stated in Nitaj’s 2023 Annual Report.
Al Morooj Dairy, owned 59% by Nitaj, has nearly doubled to 933 the number of Omani livestock farmers that it currently contracts with for the procurement of their cow and camel milk produce. The company has reported a 31% increase in the farmers joining its cow milk collection network in Dhofar Governorate last year, lifting milk production by 10.8%. Camel milk producers joining the network jumped 159% last year, boosting camel milk collections by nearly 106% in quantity.
According to Nitaj, contract farming has spurred the growth of the local agricultural and farming economy in the governorate, while helping boost the livelihoods of local communities. It has also contributed to a sustainable market for livestock farm produce, with the accent on product quality and hygiene.
Oman Flour Mills, an affiliate of Nitaj, has contracted with a total of 63 farmers in 2023, representing a 156% increase over the previous year. As part of its commitments to this partnership, the company has allocated parcels of land in Al Dhahirah Governorate, among other locations, for the production of local wheat. It is also supplying farmers with harvesting tools, while also expanding the capacity of silos in Muscat and Dhofar Governorates.
Nakheel Oman Development Company, owned 57% by Nitaj, is expanding its local resource base by tying up with date farmers – an initiative designed to ensure a reliable source of income for producers, strengthen food security around date production, and open up new international markets for Omani date produce.
Hundreds of Omani farmers are benefiting from contractual arrangements that enable their farm produce – primarily wheat, dates, and cow and camel milk – to be procured by government-backed food sector companies.
Oman Food Investment Holding Company (Nitaj), the food sector development arm of Oman Investment Authority (OIA), also foresees the potential for contract farming to encompass locally cultivated vegetables and fruits – a move that will potentially benefit thousands of Omani growers across the country.
Currently, taking the lead in partnering with Omani farmers are three Nitaj subsidiaries - Nakheel Oman Development, Oman Flour Mills, and Al Morooj Dairy, according to Mohammed bin Suleiman al Harthy, CEO – Nitaj.
“Our commitment extends beyond internal improvements to actively engage and strengthen our role within the local community. Nitaj implemented contract farming, a cooperative model with local farmers that not only utilizes their products but also supports their enterprises. This approach has been successfully integrated into several of our operations, including Nakheel Oman Development, Oman Flour Mills, and Al Morooj Dairy, benefiting from local resources like dates, Omani wheat, and fresh cow & camel milk from Dhofar's pastures,” Al Harthy stated in Nitaj’s 2023 Annual Report.
Al Morooj Dairy, owned 59% by Nitaj, has nearly doubled to 933 the number of Omani livestock farmers that it currently contracts with for the procurement of their cow and camel milk produce. The company has reported a 31% increase in the farmers joining its cow milk collection network in Dhofar Governorate last year, lifting milk production by 10.8%. Camel milk producers joining the network jumped 159% last year, boosting camel milk collections by nearly 106% in quantity.
According to Nitaj, contract farming has spurred the growth of the local agricultural and farming economy in the governorate, while helping boost the livelihoods of local communities. It has also contributed to a sustainable market for livestock farm produce, with the accent on product quality and hygiene.
Oman Flour Mills, an affiliate of Nitaj, has contracted with a total of 63 farmers in 2023, representing a 156% increase over the previous year. As part of its commitments to this partnership, the company has allocated parcels of land in Al Dhahirah Governorate, among other locations, for the production of local wheat. It is also supplying farmers with harvesting tools, while also expanding the capacity of silos in Muscat and Dhofar Governorates.
Nakheel Oman Development Company, owned 57% by Nitaj, is expanding its local resource base by tying up with date farmers – an initiative designed to ensure a reliable source of income for producers, strengthen food security around date production, and open up new international markets for Omani date produce.