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Oman Agriculture Development Company suspends operations.

Muscat: Oman Agriculture Development Company (OADC), one of the leading producers of fresh dairy farm products in the country, has decided to suspend dairy production until an alternative site is developed to re-start operations. The decision was taken by the shareholders at an extraordinary general meeting recently held in Muscat. The government earlier asked the company to relocate its farm from Sohar to Suwaiq. Recently, the company received a government grant of OMR10.34 million from Diwan of the Royal Court of Oman (DRCO) and, simultaneously, the Ministry of Housing allotted land to the company in Suwaiq, valued at OMR450,000. The management has estimated that the government grant will be received partly as income and partly as a capital grant. Income grant relates to compensation of losses incurred by the company in prior years, while capital grant applies to relocation of the complete functioning dairy business from its current location to a new location, the company said in its last year annual report. Since the receipt of the Government grant, the company has completed the preliminary phase for the new project, which includes site preparations and fencing, identification of consultants for writing feasibility reports and applying for regulatory approvals. The company, in its annual report, added that the second phase would be initiated on the completion of the first phase and with design and execution followed by a final phase to assure the smooth transition of the current operations to the new site. The company's present farm, located at Sohar, occupies an area of 800 hectares. It has a processing plant which produces 30,000 litres of milk and milk products per day and was manufacturing dairy products under the Sohar, Sunfarms and Moo Cow brands. OADC, which follows May-April as its financial year, has posted a 12.2 per cent growth in its turnover to OMR1.66 million for the first three months ending July, 2013, compared to OMR1.48 million posted during the same period last year. The net profit before taxation but after depreciation was OMR16,181, compared to a net loss of OMR112,635 posted during the same period last year.

Muscat Press and Publishing House SAOC 2013

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Publication:Times of Oman (Muscat, Oman)
Geographic Code:7OMAN
Date:Nov 17, 2013
Words:371
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