A’Saffa, one of the largest fully integrated poultry farm in Oman, has announced the launch of a massive RO9.3 million ($24 million) expansion project in Thumrait.

The equipment and machinery contracts have been finalised and excavation is underway, said a company statement.

Emirates Building Systems and Teejan have been awarded the contracts for steel and civil works of the expansion project, it noted.

The expansion strategy announced earlier this year, will help upgrade, expand and boost production capacity to 50 per cent, doubling the hatching egg production from the current 10 million eggs a year to 20 million.

The farm currently processes 34,000 birds per day, which will increase to 51,000 birds after the expansion is completed, the statement added.

The project, which would come up in Thumrait, in the southern Dhofar Region, is part of A’Saffa’s target of increasing the sultanate’s food security and self dependence.

About seventy percent of its produce is being consumed in Oman and the rest is exported to the GCC and other foreign countries.

“At the moment we cater to just 16 per cent of the market and that exists in Oman, despite producing 11 000 tonnes of chickens ever year. After expansion this will go up to 16 000 tonnes and we should be able to increase our market share to 24 per cent,” Dr Nasser Al Mauly, CEO, A’Saffa Poultry Farms, noted.

Staneley Victor, head of marketing & sales, A’Saffa Poultry Farms, pointed out that When the company started commercial production in 2004, the company was producing up to 50 per cent of the total production capacity.

"Today, though we have reached 100 per cent of our production capacity, we are still unable to meet the market requirements, so this expansion will definitely help us to cater to the increased demand.”

The company’s net worth is slated to move up to RO20 million ($51.9 million) in 2009, once the expansion is complete, with commercial production scheduled to start at expanded capacity in the first quarter.

The plant processes 11 million chickens in a year, with 5 mn chickens available at any given time. The A’Saffa range includes fresh and frozen chicken along with chicken appetizers like nuggets, burgers, fillets, fingers, samosas and springrolls.-TradeArabia News Service