Oman to expand its dairy sector with new camel cheese facility

OMAN – The Ministry of Agriculture, Fisheries and Water Resources signed an agreement with the Food and Agriculture Organisation (FAO) to open its first camel cheese production facility in Dhofar, Oman.

The new facility is part of a broader initiative to promote sustainable rural employment and improve the marketing and production of camel dairy products in the sultanate.

With funding from the Al Jisr Foundation, the project is part of the initiative titled: strengthening the camel milk and derivatives value chain through empowering women producers.

The plant is expected to begin operations in the first quarter of 2026. It will initially process between 500 litres and two tonnes of camel milk daily, with production projected to rise to five tonnes by the end of the first year and more than 15 tonnes in later phases.

Output will include fresh and semi-hard cheeses in various flavours, with plans to produce hard cheese, condensed milk, milk candy, and ice cream.

The project will directly involve 20 rural women from the Omani Women’s Association in Rakhiout, who have undergone capacity-building programmes covering dairy production, food safety, quality control, finance, and marketing.

Dr Thaer Yaseen, Acting FAO Representative in Oman, said, “This project represents a strategic investment in human capital and the infrastructure of the food sector in Oman, particularly Omani camel products, which have the potential to compete in regional and global markets when the environment is favourable.”

He added that the facility will be built by a local company in Dhofar and meet international standards of quality and food safety.

The agreement was signed in the presence of H E Dr Ahmed bin Nasser al Bakri, Undersecretary of the Ministry of Agriculture, Fisheries and Water Resources for Agriculture.

Dhofar Governorate is a major camel habitat in the Sultanate of Oman. Statistics of the year 2023 show that Dhofar Governorate houses approximately 177,821 camels, making Dhofar a vital centre for the camel dairy industry.

According to the IMARC Group, the camel dairy market size reached US$765.1 million in 2024 and is expected to reach US$1.0 billion by 2033, exhibiting a growth rate (CAGR) of 3.94% during 2025-2033.

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