Dairy Industry in Oman: An Analytical Overview
Oman is making significant strides in its agricultural sector, particularly focusing on the dairy industry, which is pivotal for the country's goals of achieving self-sufficiency and economic diversification. This dynamic sector is supported by strategic investments and modern processing capabilities.
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 and forms the backbone of its dairy industry.
Milk Production and Processing
The annual milk production in Oman is approximately 180 million liters, primarily serving the local market's consumption needs. The country's milk processing capacity is around 140 million liters per year, facilitated by modern facilities and strategic investments in the dairy processing sector.
Cheese, Milk Powder, and Whey Production
Oman's cheese production is about 6,000 tons annually, with efforts to diversify cheese varieties in response to changing consumer preferences. Additionally, Oman produces an estimated 5,000 tons of milk powder and whey each year, catering to both local consumption and regional export demands.
Key Market Players
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.
Exports and Imports
Oman's dairy exports are relatively limited, estimated at around 2,000 tons annually, with a focus on strengthening its presence in neighboring markets. 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. The dairy industry in the Sultanate of Oman is currently undergoing significant development, driven by increased demand for high-quality local products, investment in production lines, and expansion into retail markets, all aligned with global quality and sustainability standards. In addition, Hatsun Agro plans to expand its exports to Oman, targeting to double its exports annually, aiming for a 2 billion rupee milestone.
Modified: 2025/09/29