Oman Flour Mills advances insect meal project for animal feed
Oman Flour Mills (OFM), one of the Sultanate of Oman's largest food processing enterprises, has announced further progress towards its goal of investing in insect farming as a source of protein for animal feed production.
The initiative, first unveiled three years ago, is currently in the preliminary assessment stage, the publicly traded company revealed in its Board of Directors' report for the six months ended June 30, 2025.
'A desktop feasibility study has been completed for an insect meal manufacturing facility. The project aims to produce alternative protein from organic and poultry waste for use in animal feed', said Ahmed bin Ali bin Sulaiman al Bulushi, Chairman of the Board of Directors.
Insect meal contains 40–70 per cent protein, depending on species and processing; and is rich in essential amino acids, beneficial fats, vitamins and minerals. It is a sustainable feed option, as insects can be reared on organic waste, reducing landfill use and emissions, while requiring far less land, water and feed than traditional livestock. With rapid growth cycles and compatibility with circular economy and low-carbon agriculture models, it offers an efficient, eco-friendly protein source.
Earlier, at an investment roadshow hosted by the Muscat Stock Exchange, OFM officials revealed that the company is exploring the farming of black soldier fly larvae (BSFL) for the manufacture of protein meal for animal feed. BSFL — the most common ingredient in insect meal production globally — contains up to 50 per cent crude protein, up to 35 per cent lipids and an amino acid profile comparable to fishmeal. Insect meal from this species is widely used as an alternative protein source in poultry, aquaculture (farmed fish and shrimp) and other livestock feeds.
OFM, one of the country's largest animal feed producers, generates roughly half of its total revenue from feed sales. Revenue from the Feed Mills division totalled around RO 36.20 million for the first half of 2025, accounting for 50.8 per cent of the company's total revenue for the period.
Globally, the insect protein market is projected to exceed $4–5 billion by 2030, driven by rising protein demand and sustainability pressures on fishmeal and soy.
The proposed insect meal project is one of several greenfield initiatives under consideration by OFM. Notably, a health bar manufacturing facility is envisaged to start as a small-scale operation within existing premises before being relocated to a dedicated food cluster. An investment decision is expected by Q4 2025, with production slated to commence following a 10-month lead time 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.
Plans for a baby food manufacturing project in Uzbekistan are also under review, with a preliminary feasibility study completed. The project targets the growing demand in Central Asia.
Partly state-owned OFM — part of Oman Food Investment Holding Company (Nitaj) — has operations spanning flour milling, bakery and confectionery products, dairy and poultry products, meat, animal feed and laboratory services.
OFM Group revenue grew by 3.2 per cent year-on-year to RO 67.8 million for the six months ended June 30, 2025, supported by sustained demand. Gross profit rose by 13.5 per cent to RO 14.8 million, with the gross margin improving from 19.9 per cent to 21.9 per cent, reflecting better cost efficiency at the production level. Net profit after tax increased by 22.4 per cent to RO 4.32 million, the company added.
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