Al Ain Dairy, located in the UAE’s Abu Dhabi emirate and which reported a good first-half 2005 business performance, has announced it is investing Dh35 million ($9.5 million) in setting up a new dairy farm.
Expansion plans also include the setting up of a distribution centre in the Jebel Ali Industrial Area before year’s end at a cost of Dh11 million and an increase in retail outlets.
“A new dairy farm in Al Ain will be ready in 2007, and in December this year a major distribution centre will be opened in Dubai,” said Saeed Khalfan Mattar Al Romaithi, chairman of Al Ain Dairy.
The official said the new farm would house 2,000 cattle and would be the company’s second major dairy farm. The existing farm has 2,800 cattle.
The distribution centre in Dubai, spread across 10,000 sq m, will be used for networking in Dubai and the northern emirates.
Al Romaithi observed that despite growing competition, demand for dairy products was growing and the company’s sales had risen by 20 per cent during the first half of 2005. “Our total sales reached Dh139 million in the first six months of this year. Growth was generated out of Dubai and Sharjah, followed by Abu Dhabi,” he said.
Production capacity at Al Ain Dairy is about 100,000 litres per day of fresh milk and 20,000 litres of fresh juices. The company expects to increase production soon to 120,000 litres daily of fresh milk.
It is also consolidating its regional expansion across the border in Oman where it exports 15,000 litres of milk daily.
“There is strong demand for our camel milk in Oman and exports are going to go up later.”
Al Ain Dairy also plans to double the number of retail outlets in the UAE after it opened two new ones recently, one in Dubai and the other in Abu Dhabi. “By 2007, we will double the number of outlets to 16 from the present eight,” Al Romaithi said.
Capitalised at Dh140 million, the company is owned 25 per cent by the private department of the late Shaikh Zayed and 25 per cent by the government. Shareholders in Al Ain hold the other 50 per cent stake.
