Bahrain's Dairy Industry Overview
Bahrain, strategically located in the Arabian Gulf, is actively pursuing economic diversification with the dairy sector emerging as a key component in this strategy. Despite the challenging climatic conditions, which naturally limit the number of dairy cattle, the industry is finding ways to thrive.
Dairy Cattle Population and Milk Production
The environmental conditions in Bahrain restrict the population of dairy cattle, resulting in local dairy production meeting only a small fraction of the domestic demand. Consequently, the majority of consumed dairy products are imported.
Milk Processing and Cheese Production
Milk processing volumes in Bahrain remain modest, with an emphasis on promoting local production to decrease reliance on imports. The production of cheese locally is a particular focus, as part of efforts to reduce dependence on imported cheese products.
Milk Powder and Whey Production
Bahrain's production of milk powder and whey is limited, necessitating imports to satisfy the majority of the demand in the country.
Key Dairy Enterprises
- Al Marai Bahrain Company: This company plays a significant role in the region, offering a wide variety of dairy products to consumers in Bahrain.
- Awal Dairy: A local leader in dairy processing that provides a range of milk and cheese products tailored to the tastes of Bahraini consumers.
Export and Import of Dairy Products
Bahrain heavily relies on imports for the bulk of its dairy supplies, including milk, cheese, and milk powder, sourced primarily from leading dairy-exporting countries. These imports are estimated in thousands of metric tons annually, demonstrating the country's trade dependency. Local demand is prioritized, resulting in minimal export volumes.
Recent Developments in the Dairy Market
Recently, Bahrain has been focusing on forming trade agreements with major dairy producers like India, which is part of its strategy to stabilize and diversify its dairy supply sources. These efforts align with Bahrain's goals to lessen its reliance on current import channels and enhance food security. Additionally, the market is becoming increasingly open to foreign investment and collaboration, fostering further growth potential.
Furthermore, Arla Foods has announced plans to invest €50.9 million into its cheese factory located in Bahrain, which serves the Middle East and North Africa (MENA) regions. This investment is expected to bolster the local dairy industry significantly.
In alignment with Bahrain's broader strategy to enhance local workforce capabilities, significant contributions are made by companies like Arla Foods. Bahrain is expanding its trade horizons with Serbia, focusing on new sectors beyond traditional industries like oil.
Bahrain aims to diversify beyond its oil-reliant economy by fostering new partnerships in sectors such as dairy, digital technology, and other industries.
Modified: 2025/09/26