Plan for large-scale alternative foods project in Oman

New foods: OIA partners with MycoTechnology and others to establish Vital Foods Technologies

BUSINESS REPORTER

MUSCAT, FEB 20

In line with its mandate to attract foreign investment, build strategic partnerships and support technology inflows, Oman Investment Authority (OIA) – the integrated sovereign wealth fund – launched a new project to produce mushroom-based protein using dates as a main element, in collaboration with international partners, most predominantly, the US company MycoTechnology.

The partnership comes on the heels of OIA’s investment in MycoTechnology, a US company founded in 2013. MycoTechnology is a leading US food biotechnology firm focused on the production of alternative protein and sugar reduction ingredients. The company has successfully established its fermentation technology platform producing a variety of ingredients which address some of the food industry’s most pressing challenges. OIA and MycoTechnology announced the establishment of ‘Vital Foods Technologies’ for the purpose of completing the feasibility of setting up a large scale production facility in the Sultanate of Oman.

The partnership was announced at a ‘Future of Food’ event organized by OIA and MycoTechnology to introduce the promising capabilities of this project, which already underwent several successful techno-economic studies. The event witnessed the formal signing between OIA and MycoTechnology to establish Vital Foods Technologies, and was attended by a number of senior government officials, senior corporate executives, representatives of companies and funds investing in the food sector, and MycoTechnology representatives. Attendees were served a Southeast Asian menu with dishes composed of alternative protein.

From this partnership, OIA seeks to enhance food security, achieve national sufficiency and attract international expertise to be utilized in local projects. The outcome to this partnership is hoped to achieve economic diversity, create direct and indirect job opportunities and create opportunities for Omani SMEs.

“This innovative project represents the benefits OIA can reap from international investments, where after it attracts its international partners to establish their projects in Oman and to transfer and bring advanced modern technologies to the country,” stated Ibrahim al Eisri, Director of Private Equity at Oman Investment Authority.

“Through its investment in the food production sector, OIA is exploring promising investment opportunities that can succeed in the back drop of Oman’s climate and benefit the national economy. Such investment is set to deliver return on investments, improve the trade balance, substitute food imports in light of international price discrepancies, provide job opportunities in the food production sector both directly or indirectly, and provide a high quality product that meets the consumers’ needs,” he added.

“Oman produces about 400m MT per year, and over 50 per cent is not suitable for table dates and can be made available to produce Mushroom Protein,” said Alan Hahn, CEO and Founder of MycoTechnology. “Regional markets for alternative products are promising with the MENA current market for alternative dairy at $1.2b with a 12 per cent CAGR and is expected to reach at least $3b. MENA current market of alternative meat is $180m with a 10 per cent CAGR. Export opportunities are huge with India representing the largest opportunity with their 1.3b population. Imported products are approximately 200 per cent the cost of similar products in the US/EU and having the protein and finished product produce in Oman will allow for the lowest cost in the region. This cost advantage allows for new local brands to emerge and leverage the domestic production and the use of such a well-known and respected crop of dates as the source of protein,” he added.

The alternative food industry has strongly imposed itself in the international playing field recently. According to Bloomberg Intelligence the plant-based food market is set to reach $162 billion in value by the year 2030, as opposed to $29.4 billion in 2020. On the regional front, it is estimated that 15-20 per cent of animal-based protein will be replaced by plant-based protein by 2025.

This company is set to be the new investment in a line of OIA’s local investments in the food industry. In Oman, this vital industry is overseen by state-owned company Oman Food Investment Holding Co (OFIC). OIA also owns Fisheries Development Oman (FDO) which was established to develop the fisheries sector in the country through investing in profitable commercial projects that enhance the value of the fisheries sector in the country. (With inputs from ONA)