Oman-based Mazoon Dairy Company, which plans to set up a major dairy farm with an investment of OR100 million ($259.7 million) in the Buraimi governorate, has issued a pre-qualification tender to develop facilities for the farm.   

A tender is to develop the farm, dairy plant and associated facilities at Sunaynah in Buraimi, said a Times of Oman report.

The pre-qualified companies can bid for the main contract to develop a new farm, factory, offices, accommodation and associated facilities – all coming up in a large area of 1,500 hectares, it said.

The proposed integrated joint venture dairy project plans to start with approximately 4,000 cows in 2017, which will grow to a herd size of 25,000 in 2026.

Additionally, the company will produce approximately 202 million litres in 2026, which will go up to 985 million litres in 2040. This, along with increase in existing production and the new milk collection scheme being promoted, will reduce the import dependency from 69 per cent in 2014 to 13 per cent in 2026.

Apart from fresh milk, the dairy project is aimed at producing fresh juice, mineral water, laban and yogurt.

The project is expected to achieve around 90 per cent Omanisation within a period of 10 years.

The long-term strategy is to achieve more than 100 per cent domestic demand in dairy products and probably to export the product from Oman. It is expected that Oman will become a net exporter of dairy products by 2040, added the report.