A’Saffa Foods was granted OMR41.5m by Bank Muscat to help fund the expansion, which will double production to 40m birds per year in order to keep up with growing demand.
The expansion, which is due for completion by the end of 2018, will include a further 10 farms with 90 poultry houses, a hatchery, feed mill, processing plant and other utilities.
The project will make a “significant contribution to Oman’s food sufficiency,” said Sheikh Rashid Saif Mohamed al-Saadi, chairman of A’Saffa, which also processes red meat, fish, fruit and vegetables.
“With an annual production capacity of 40,000 tonnes of chicken meat per year, the project will have a far-reaching impact on meeting the growing demand of A’Saffa products in the sultanate and beyond.”
The expansion is part of Muscat-based A’Saffa’s strategy of promoting food security, boosting exports and reducing the country’s dependence on the oil and gas sector. It will play a significant role in bringing more Omanis into employment in Dhofar governorate, in particular.
“Being market leaders, we have always been committed to proactively improving our performance year on year,” said Nasser Zahir Nasser al-Maawali, the company’s chief executive.
“Given our robust expansion plans, we will continue to focus on production and operations, brand variation and overall growth and development, while creating long-term value for our stakeholders, and ensuring sustainability in all our operations.”
Last year the company registered a drop in profits to OMR.4.5m from OMR5.8m the previous year due to increased land rentals and lower feed subsidies.
And despite a reported sizeable influx of cheap meat and poultry imports into the country, A’Saffa executives say the company has managed to maintain its market share.