Dairy Industry Analysis of Oman

Overview

Oman, a dynamic economy in the Middle East, is making significant strides in its agricultural sector, particularly focusing on the dairy industry. This sector is pivotal for the country's goals of achieving self-sufficiency and economic diversification.

Key Dairy Industry Data

Dairy Cattle

Oman maintains a dairy cattle population estimated between 15,000 to 20,000. This herd size is crucial for supporting the country's milk production capabilities.

Milk Production

The annual milk production in Oman is approximately 180 million liters, primarily serving the local market's consumption needs.

Milk Processing

Oman's milk processing capacity is around 140 million liters per year, facilitated by modern facilities and strategic investments in the dairy processing sector.

Cheese Production

Cheese production in Oman is about 6,000 tons annually, with a focus on diversifying cheese varieties to meet changing consumer preferences.

Milk Powder and Whey Production

Oman produces an estimated 5,000 tons of milk powder and whey each year, catering to both local consumption and regional export demands.

Key Enterprises in the Dairy Market

Dairy Plants and Farms

Major players in the dairy industry include Mazoon Dairy, known for its modern processing capabilities, and prominent dairy farms like Al Jazeera Cattle Farm and Al Bashayer Meat Company, which are essential in providing raw milk.

Export and Import of Dairy Products

Exports

Oman's dairy exports are relatively limited, estimated at around 2,000 tons annually, with a focus on strengthening its presence in neighboring markets.

Imports

To meet domestic demand deficits, Oman imports approximately 30,000 tons of dairy products annually, primarily sourced from neighboring GCC countries.

Significant Events

A recent notable development is the agreement between Oman Air and Mazoon Dairy, highlighting an emphasis on local sourcing of dairy products and reflecting Oman's commitment to economic development and agricultural sustainability. By 2024, Oman held an 11% share in total whole fresh milk imports, showcasing its growing influence in the regional dairy market.

Conclusion

Overall, Oman's dairy market is on a positive growth trajectory, supported by strategic investments and collaborations aimed at reducing import dependencies and increasing self-reliance. The steady inflation rate of 0.81% in the first five months of 2025 further supports the stability of the sector.

Modified: 2025/07/29


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