Oman Flour Mills Advances Insect Meal Project: What It Means for the Future of Animal Feed and Investment Opportunities in Oman
MUSCAT, AUGUST 15 — Oman Flour Mills (OFM), one of Oman’s largest food processing companies, has reported significant progress in its strategic initiative to invest in insect farming as a sustainable protein source for animal feed production.
The project, initially announced three years ago, is currently in the preliminary evaluation phase, according to OFM’s Board of Directors’ report for the first half of 2025, ending June 30.
“A desktop feasibility study for an insect meal manufacturing facility has been completed,” stated Ahmed bin Ali bin Sulaiman al Bulushi, Chairman of the Board. “The project aims to produce alternative protein from organic and poultry waste for use in animal feed.”
Insect meal offers a protein content ranging from 40 to 70 percent, depending on the species and processing method. It is rich in essential amino acids, beneficial fats, vitamins, and minerals. As a sustainable feed option, insect farming utilizes organic waste, significantly reducing landfill use and greenhouse gas emissions. It also requires substantially less land, water, and feed compared to traditional livestock. With rapid growth cycles and compatibility with circular economy and low-carbon agriculture models, it represents an efficient and eco-friendly protein source.
Earlier, during an investment roadshow hosted by the Muscat Stock Exchange, OFM officials disclosed plans to explore farming black soldier fly larvae (BSFL), which is the most widely used ingredient in global insect meal production. BSFL contains up to 50 percent crude protein, up to 35 percent lipids, and an amino acid profile comparable to fishmeal. This species is commonly used as an alternative protein source in poultry, aquaculture, and other livestock feeds.
OFM, a leading animal feed producer in Oman, derives approximately half of its total revenue from feed sales. Revenue from its Feed Mills division reached around RO 36.20 million for the first half of 2025, representing 50.8 percent of the company’s total revenue during the period.
The global insect protein market is forecast to surpass $4–5 billion by 2030, driven by increasing protein demand and sustainability challenges affecting fishmeal and soy production.
This insect meal project is among several greenfield initiatives that OFM is considering. One such project includes establishing a health bar manufacturing facility, initially operating on a small scale within existing premises, before relocating to a dedicated food cluster. An investment decision is anticipated by the fourth quarter of 2025, with production expected to start after approximately 10 months required for equipment procurement and installation.
Additionally, OFM is exploring opportunities in the functional foods segment, focusing on high-value nutritional products aligned with global health and wellness trends.
The company is also reviewing plans for a baby food manufacturing project in Uzbekistan, with a preliminary feasibility study completed to tap into growing demand in Central Asia.
Partly state-owned and under the Oman Food Investment Holding Company (Nitaj), OFM’s operations span flour milling, bakery and confectionery products, dairy, poultry products, meat, animal feed, and laboratory services.
For the six months ended June 30, 2025, OFM Group reported revenue of RO 67.8 million, a 3.2 percent increase year-on-year, driven by sustained demand. Gross profit rose by 13.5 percent to RO 14.8 million, with the gross margin improving from 19.9 to 21.9 percent, reflecting enhanced production cost efficiency. Net profit after tax also increased by 22.4 percent, reaching RO 4.32 million.
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Oman Flour Mills’ move into insect protein production signals a strategic shift towards sustainable, eco-friendly animal feed, opening new opportunities in a rapidly growing global market projected to exceed $4–5 billion by 2030. For businesses in Oman, this innovation reduces reliance on traditional feed sources like fishmeal and soy, while smart investors and entrepreneurs should consider the potential of circular economy models and emerging functional food segments as critical growth areas in the coming years.
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