January 15, 2013
 

Oman Flour Mills receives 80% feed subsidy
 

Oman Flour Mills said it received OMR5.56 million (US$14.4 million), representing 80% of the feed subsidy claim for the period January 2011-June 2012, after filing to the Muscat Securities Market (MSM) on Wednesday (Jan 9).

"We believe the balance payment will be received upon final approval of the methodology for computation of the subsidy," said Oman Flour Mills (OFM). In its June 2012 financial statement, OFM accounted for the amount received and the balance amount receivable.

A'Saffa Foods said that it has received the first instalment of OMR1.56 million (US$4 million), being 80% of the subsidy amount up to June 30, 2012.

In 2011, local feed producers complained that their profit margins were severely under pressure due to rising raw material costs. Last year, considering the volatility in raw-material prices the government announced feed subsidy to producers from January 2011.

Following the subsidy announcements, the shares of animal-feed companies surged on the MSM on Wednesday. A'Saffa's stock jumped 5.56 % and Oman Flour Mills rose 3.16%. Shares of Dhofar Cattle Feed and Salalah Mills gained 4.58% and 2.5%, respectively.