Oman soya meal project attracts foreign investors

MUSCAT, MAY 26 - Leading international players specialising in the production of animal feed have taken equity stakes in Oman’s maiden soya meal processing project planned for implementation within the Food Cluster of Sohar Port and Freezone (SOHAR). Oman Food Investment Holding Company (OFIC), the government’s food investment flagship, is spearheading the development of the project with an investment of around RO 38 million. It is the latest in a rapidly expanding portfolio of initiatives and programmes being pursued by the state-owned enterprise in support of the nation’s food security strategies. According to a high-level executive of OFIC, well-established players from East Africa and the Gulf have been roped in as “strategic investors” in the venture. “Various international and local and investors are participating in Oman Soya Crushing Company, which was launched recently to crush soya meal — a major constituent element in animal feed for the poultry sector,” said Frank O’Regan, Chief Operating Officer — OFIC. “Some of them hail from Tanzania and the United Arab Emirates, and are already in the business of (animal feed processing).” In March, the Observer quoted OFIC’s Chief Executive Officer, Saleh bin Mohammed al Shanfari, as stating that the project has been designed to produce 750,000 tonnes of soy feed and 175 tonnes of soybean oil per annum. The project’s output will help meet 100 per cent of the nation’s requirement of soy feed for the burgeoning poultry farming sector, which currently depends on imports for its needs. Oman Soya Crushing Company, as the new subsidiary is named, has since been formed with a new board already in place, said O’Regan. “The next stage is to recruit senior management and in effect build the business plan for the next 12 months, while the concept design originally developed will be taken through to detailed design and construction.” Soya bean as feedstock for the project will be sourced from a variety of international suppliers, according to the Chief Operating Officer. “We have talked to a number of suppliers and international trading houses, so soya bean will come from different sources.” O’Regan also underlined the potential for further value-addition investment opportunities downstream of the soya meal crushing project. “Longer term, you can get into pharmaceutical-quality soya oil production. For example, soya oil can go into the production of capsules for the pharmaceutical industry for human consumption.” “Indeed, the value proposition associated with what OFIC is doing can get bigger and better as each operating company of OFIC grows and develops. The key principle is that the company must be profitable, it must be able to stand on its own two feet without subsidy, and all of them are integrated in some way.” Demand for soya bean meal — a key protein supplement used in poultry diets — is projected to explode as poultry production surges from around 30,000 tonnes presently to around 120,000 tonnes per annum over the next 3 to 5 years. Part of this growth will be contributed by A’Namaa Poultry Co SAOC, a subsidiary of OFIC, which is developing a 60,000 tonnes capacity mega poultry project in Ibri with an investment of around RO 100 million. Conrad Prabhu