Bahrain Flour Mills (BFM) Company has been in operation for more than 30 years, but having tasted strong growth over the years and won respectability as a reliable producer, the company has decided to seriously pursue the marketing of value-added products in the Gulf region.

With its experience and its quality standards, BFM does not see why it should not make progress in exports, says general manager Saeed bin Huwail.
“It’s not that BFM had never sent its products abroad. There were occasional shipments. When specific customers made requests the company complied,” he said.
“Now we are putting in place a proper marketing system so our shipments can go regularly and our products have a presence at least in the main supermarkets.”
BFM expects to send all-purpose flour, pizza flour, dumpling mix, self-raising flour and brown flour along with pre-mixes for bakeries containing flour mixed with sugar, milk, salt and yeast, among other things.
“We began our ‘structured’ exports to Qatar and Saudi Arabia in September, sending small packs used by households and marketing them under the brand name Al Matahin,” said Saeed. “We are encouraged by the response.”
BFM saw sales rising to BD3.8 million ($10.08 million) for the first three quarters of 2004 against BD3.4 million for the corresponding period in the previous year and BD4.7 million for full-year 2003. Sales in 2004 are expected to rise by seven per cent.
The company produces around 70,000 tonnes of flour, of which 15,000 tonnes of bran is set aside as animal feed. Of the flour sold to households and bakeries, a small quantity, approximately five tonnes is mixed with bran. Around five tonnes of bran is sold unmixed with flour to bakeries.
In 2003, the company made a net profit of BD702,000, representing an increase of BD518,000. This was possible only because there was an increase in government subsidy from BD655,000 in 2002 to more than BD1.2 million, following a dramatic increase in wheat prices. Profits were also boosted because of a nine per cent spurt in the net sales of special products.
Wheat prices this year have risen by around 42 per cent over 2003. The subsidies are helping the financially weaker sections of society buy their requirements at an affordable price. The subsidies though are available only for 50-kg bags of flour of certain grades.
BFM’s main shareholder is the Bahraini government, which owns 65.7 per cent of the company. Other Bahraini shareholders have a 26.8 per cent stake with Kuwait Flour Mills and Bakeries Company accounting for the remaining 7.5 per cent.
The company was granted the ISO 9001:2000 certification in 2003. One of the significant developments arising from decisions made by the board that year was the purchase of a ship unloader from the Swiss company Buhler. The equipment, which required investment of BD 460,000, is among the world’s fastest for unloading grain as it can suck some 6,000 tonnes per day of wheat from vessels into container vehicles that will transport it to silos.
The new machine, operating since October 2004, replaces old equipment that could unload just 2,000 tonnes of wheat per day. In addition to freeing labour for other work, the new equipment provides cost advantages by enabling the vessel to leave early, which means there are lower shipping costs to pay. The wheat is imported mainly from Australia, India, Canada and Argentina.           
Another 2003 decision being implemented is the installation of additional silos to raise storage capacity from 23,000 tonnes to 43,000 tonnes. “The installation, which will be completed in 2006, takes into account the long-term view and gives us the flexibility to buy and stock wheat when prices are good,” said Saeed who earlier served in various capacities in Unilever Arabia including commercial manager, supply chain manager and assistant to the chairman.