Oman to target new markets for wheat imports

Diversified market base: First shipment of Australian grain to arrive in November: Oman Flour Mills CEO

MUSCAT, SEPT 25

Oman Flour Mills (OFM) – part of Oman Food Investment Holding Company (Nitaj) – plans to diversify its import base for the procurement of wheat with a view to ensure stability in supplies, as well as competitive prices.

The new strategy comes despite the resumption of wheat imports from Ukraine, which along with Russia, rank among the world’s biggest exporters of wheat and other food commodities.

“Yes, we are looking to procure new stocks from overseas,” said Haitham al Fannah (pictured), CEO – Oman Flour Mills. “We are covered for the foreseeable future and plan our procurements of not just wheat but all commodities well in advance. The markets that we are looking to procure from in the future include Australia, Canada, Black Sea region and in addition to opportunities from India and Pakistan.

In remarks to the Observer, the CEO pointed out that the global wheat supply market has yet to reach normality, following the turbulence unleashed by the start of hostilities between Russia and Ukraine earlier this year.

“The market is still volatile given the current conflict in Ukraine and further swings can be expected. In addition to the current geopolitical crisis and logistic bottlenecks, The US-China geopolitics might affect the prices too going forward,” he warned.

But he confirmed that supplies from Ukraine have resumed. “Yes, we have procured a shipment from Ukraine that arrived on the 19thof August 2022 and we will consider further shipments from Ukraine and the Black Sea region as it is a key region for import at this time of year.”

Significantly, OFM is also gearing up to receive its maiden shipment from Australia under a new initiative launched by the company to help secure is wheat requirements.

In April, Atyab Investments, the investment arm of Oman Flour Mills (OFM), announced that it had set up a new company in Australia, one of the world’s biggest grain and livestock farming nations. OMAUS Pty Australia was established with the aim to “contract with growers in Australia”, thereby enabling better procurement terms for the procurement of Australian grain.

“Our aim is to secure the shipment in line with the harvest season which will be towards November this year,” Al Fannah added.