Dhofar Fisheries to diversify into processed meat products

22/03/2011 00:00 AST

Dhofar Fisheries Industries Company (DFIC) is planning to diversify from its core fisheries canning business into the processing of meats as well.

The move is part of a reinvigorated strategy by the Salalah-based firm aimed at stemming a trend in year-on-year losses, and eventually returning the company to profitability.

A new business model drawn up by the company envisages a broadening of its traditional focus on the processing and canning of fish to include - for the first time - processed red and poultry meat products as well. The plan calls for the introduction - as early as during 2011 - of beef and chicken burgers, franks and other processed meat products, according to the company's financial reports for the year ended December 31, 2010.

Fish processing has been at the core of DFIC's operations since the company was launched in 2001. The product range includes canned tuna and sardines, tuna loins, frozen tuna and sardines, fish meal and fish oil. Occasionally trades in fish products have also contributed to the company's bottom-line.

Following a review of its business model, the management decided to expand the company's product portfolio beyond the prevailing focus on tuna canning - an activity described as "highly competitive and low margin-high volume business".

"The major shareholders have reached the conclusion that with tuna and sardine canning alone, DFIC will find it difficult to compete against the giants and to reach profitability a new business model was agreed with new product lines to diversify and expand the product range," Awad Mohammed Bamkhalef, Vice Chairman of DFIC stated in the Directors' Report for the financial year ended December 31, 2010.

"A new business plan has been formulated and will be submitted to the government and the banks to reschedule the government soft loan. We are hoping that this will yield positive results in the future," he added.

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Oman Daily Observer