Oman Flour Mills explores insect protein farming to boost sustainable feed production
OFM is also assessing opportunities in functional foods and nutrition, tapping into rising consumer demand for health-focused products.
OMAN – Oman Flour Mills (OFM), a leading food processing company in the Sultanate, is making strides toward its innovative goal of incorporating insect farming into its operations to produce sustainable protein for animal feed.
The publicly traded company, part of Oman Food Investment Holding Company (Nitaj), detailed its progress in the 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.
The initiative, first announced three years ago, focuses on farming black soldier fly larvae (BSFL), a globally recognized source for insect meal due to its high nutritional value. BSFL contains up to 50% crude protein, 35% lipids, and an amino acid profile comparable to fishmeal, making it a viable alternative for poultry, aquaculture, and other livestock feeds.
Insect meal, with 40–70% protein content depending on species and processing, is rich in essential amino acids, beneficial fats, vitamins, and minerals. Its production aligns with circular economy principles by utilizing organic waste, reducing landfill use, and minimizing emissions while requiring significantly less land, water, and feed than traditional livestock.
Feed manufacturing is a cornerstone of OFM’s business, contributing around half of total company revenues. For the first half of 2025, revenue from the Feed Mills division reached RO 36.20 million (US$94.18M), accounting for 50.8% of the company’s total revenue.
With the global insect protein market expected to surpass US$4–5 billion by 2030, driven by increasing demand for sustainable protein sources amid pressures on traditional fishmeal and soy production, OFM aims to tap into this potential while also reducing production costs.
Solid Half-Year results support diversification drive
The insect meal initiative is part of a broader pipeline of projects being developed by OFM, supported by the company’s strong financial performance.
For the six months to June 30, 2025, group revenues grew 3.2% year on year to RO 67.8 million (US$176 million). Gross profit rose 13.5% to RO 14.8 million (US$38 million), with margins improving to 21.9% from 19.9% on stronger cost efficiencies. Net profit after tax climbed 22.4% to RO 4.32 million (US$11 million).
This healthy performance provides a platform for OFM to push forward with new investments. The company has outlined plans to launch a health bar production facility, initially operating on a small scale before moving to a larger food cluster. An investment decision is anticipated in the fourth quarter of 2025, with production to begin after a 10-month procurement and installation period.
OFM is also assessing opportunities in functional foods and nutrition, tapping into rising consumer demand for health-focused products. A baby food project in Uzbekistan is under feasibility review, targeting the Central Asian market’s expanding appetite for packaged infant nutrition.
As a diversified food group, OFM’s activities span flour milling, bakery and confectionery, dairy and poultry, meat, animal feed, and laboratory services.
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