November 6, 2009

Qatar's Hassad Food plans US$68.5m poultry project

Hassad Food, owned by Qatar's sovereign wealth fund, plans to develop a us$68.5 million poultry project with Oman's A'Saffa Poultry to secure food supplies in the Gulf state, A'Saffa's chief executive said Thursday (Nov 5).

The farm will begin operation in about 24-30 months time and will be able to produce about 20 percent of Qatar's poultry needs, said Nasser Al Maully.

Once completed, the 30 square kilometre farm located at the southern end of the Arab state will produce up to 17,000 tonnes of broiler meat and 90 million eggs annually, he said.

A'Saffa would be the project's consultant.

This plan is part of an effort to secure food supplies in the Gulf region and rely less on imports, said Maully.

Profits from the project will only be made after four years, he added.

Gulf Arab countries are heavily reliant on food imports and have been snapping up farmland and food companies in developing nations to ensure food security.

In August, Hassad Food said it had plans to develop the agricultural sector in Qatar, in addition to acquiring stakes in foreign food companies.

The firm also aims to conclude as many as six deals by year end, including in South America, and is currently scouting Africa to set up joint ventures or buy firms to develop land.