Tuesday, September 28
08:11 AM

Bolstering locally-produced farm products

25 Jul 2020

The newly formed Oman Investment Authority (OIA) announced the formation of an integrated company specialising in production of high-quality vegetables and fruits as well as marketing of locally-produced vegetables and fruits for domestic and export markets.

The project aims to establish model farms across Oman according to the comparative advantage, diversity of climates, and environments suitable for the growth of various crops. 

OIA said that the integrated company will be formed under Oman Food Investment Holding Company, a company affiliated to OIA. The company aims to market 65% of its products in the local retail and wholesale markets, while it will export 35% of its products overseas.

The project comes within the framework of close and fruitful cooperation between OIA and the Ministry of Agriculture and Fisheries with the aim to encourage Omani farmers and small and medium-sized enterprises (SMEs) to market their products inside and outside the sultanate. 

‘This step is considered a positive example of the cooperation between government institutions with investment agencies in the sultanate and to encourage positive participation for the private sector investors as well,’ stated OIA.

The coordination with the Ministry of Agriculture and Fisheries is to build a production system aimed at achieving balance in local markets with a focus on replacing agricultural imports. ‘In addition to offering high-quality products that offer the best alternatives to the consumer, produce organic vegetables and fruits, upgrade agricultural practices, and build models for contract farming, the project activities will also focus on purchasing fruits and vegetables directly from farmers’ associations, agricultural companies, SMEs and small farmers, and then sorting and packing them.’ 

The company’s trading unit will work to import fruits and vegetables throughout the year from different countries based on the demand of the local market and to export surplus products overseas. Retail outlets will also be established in densely populated cities.

The total investment cost of the project is about RO11.5mn and the opportunity is accessible for private sector companies to contribute to the project in order to enhance the partnership between the public and private sectors, OIA stated.

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