MUSCAT: Bolstered by its success in securing two shipments of wheat directly from Australian farmers, Oman Flour Mills (OFM), the nation’s biggest integrated food company, is now exploring opportunities for shared farming in Australia, a global leader in wheat production.
By collaborating directly with Australian farmers, OFM aims to procure its wheat requirements economically and cost-competitively, while also safeguarding against market disruptions and price volatility of the kind that erupted globally in 2022.
Tasked with exploring shared farming opportunities in Australia is OMAUS Pty, OFM’s wholly-owned Australian subsidiary. OMAUS Pty also oversaw the two direct procurements of Australian wheat during 2023 and 2024, each of around 34,500 metric tonnes of Australian Premium White (APM) grain.
Writing in the Directors’ Report of OFM’s unaudited financial statements for H1 2024, Ahmed bin Ali al Bulushi Chairman – Board of Directors, noted that OMAUS Pty had “commenced discussions” with Australian growers on prospects for shared farming. The subsidiary also recorded a profit of RO 51k in Q2 2024, which was earned through “grain trading activities and foreign exchange gains”, he stated.
Meanwhile, publicly-traded OFM, which is a part of Oman Food Investment Holding Company (Nitaj), is pressing ahead with a number of mergers and acquisitions that will further boost its considerable portfolio.
“Multiple projects are being evaluated across the group. The projects focus on integration across the value chain as well as diversification into new ventures,” Al Bulushi stated.
Atyab Investments LLC, which is OFM Group’s investment arm, plans to acquire a “large industrial bakery”, the valuation process of which has concluded. “Atyab Investment will proceed with submitting a non‐binding offer, and upon its acceptance, legal due diligence will be initiated,” the Chairman commented in the H21 2024 report.
Likewise, Atyab Investments has appointed a consultant to evaluate the potential of a merger with a “large upcoming frozen industrial bakery”.
Furthermore, with regard to OFM’s plans to expand into the lucrative Saudi market, the Chairman noted that a consultant has completed the market assessment for setting up an industrial bakery in the Kingdom.
Also making headway are plans for the establishment of an Industrial Cluster linked to the production of food ingredients. A report on this initiative is being evaluated by OFM’s management, he said.
Additionally, a feed mill is also in OFM’s sights for possible acquisition. “Atyab Investments has completed the valuation of the target entity. Once the terms and conditions have been agreed, Atyab shall commence the legal due diligence for finalization,” the Chairman added in conclusion.
Meanwhile, OFM Group recorded total revenue of RO 66.09 million during H1 2024, which was up 1.6 per cent from the corresponding figure of RO 65.05 million in H1 2023. The growth came mainly from the flour mill and the feed mill sectors. Net profit after tax surged 375 per cent to RO 3.53 million, up from RO 745k in H1 2022.
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