Oman Flour Mills advances insect meal project for animal feed

OMAN – Oman Flour Mills (OFM), one of the Sultanate’s largest food processing companies, is moving ahead with plans to venture into insect protein production for animal feed, a step that could position the company at the forefront of sustainable feed innovation in the region.

The initiative, first unveiled in 2022, is still in its early stages, with a preliminary feasibility study now completed, according to the company’s Board of Directors report for the six months ending 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.

Sustainable protein alternative

Insect meal, containing between 40 and 70 percent protein depending on species and processing, has been gaining global attention as a sustainable feed option. 

It is rich in amino acids, healthy fats, vitamins and minerals, and can be produced using organic waste, reducing both landfill use and greenhouse gas emissions. 

Compared to conventional livestock, insects require significantly less land, water and feed while offering faster growth cycles.

At a recent investment roadshow hosted by the Muscat Stock Exchange, OFM revealed that it is specifically considering farming black soldier fly larvae (BSFL) to manufacture protein meal. 

BSFL-based insect meal is already widely used worldwide as a replacement for fishmeal and soy in aquaculture, poultry and livestock feed, thanks to its crude protein levels of up to 50 percent and lipid content of up to 35 percent.

The global insect protein market is expected to exceed $4–5 billion by 2030, driven by growing protein demand and sustainability pressures on fishmeal and soy, according to industry projections.

Feed remains a core revenue driver

Feed is already a cornerstone of OFM’s business, contributing about half of its total revenue. The Feed Mills division generated RO 36.20 million (US$94 million) in the first half of 2025, accounting for 50.8 percent of total sales.

Overall, OFM Group revenue rose by 3.2 percent year-on-year to RO 67.8 million (US$176 million) for the six months ended June 30, 2025. Gross profit climbed 13.5 percent to RO 14.8 million (US$38.4 million), with gross margins improving from 19.9 percent to 21.9 percent. Net profit after tax increased by 22.4 percent to RO 4.32 million (US$11.2 million), underscoring the company’s improving operational efficiency.

Other growth initiatives

The insect meal project is among several greenfield ventures under review by OFM as it seeks to diversify and strengthen its portfolio. 

The company plans to launch a health bar manufacturing facility, initially on a small scale within its existing premises, before relocating to a dedicated food cluster. 

An investment decision is expected by the fourth quarter of 2025, with production to follow after a 10-month equipment procurement and installation period.

Additionally, OFM is exploring opportunities in the functional foods segment, targeting high-value nutritional products aligned with global health and wellness trends. 

A baby food manufacturing project in Uzbekistan is also under consideration, with a feasibility study already completed to tap into Central Asia’s growing demand.

Partly state-owned OFM, through its parent Oman Food Investment Holding Company (Nitaj), has operations spanning flour milling, bakery and confectionery, dairy and poultry products, meat, animal feed and laboratory services.

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