Bahrain Review

Trafco logistics unit on way

A $14 millionlogistics facility aims to shore up the business of General Trading and FoodProcessing Company (Trafco) and provide Bahrain with a state-of-the-artinfrastructure near the new Khalifa Bin Salman Port.

The Galaliproject is scheduled to be completed in the first quarter of this year.

Trafco has also been expanding its product line continuouslyin order to further strengthen its presence in the region.

'We aim to become a leading food company in the GCC regionand in order to reach that goal we're pursuing both the organic and inorganicroutes,' said a Trafco spokesman.

'We have been regularly adding new products and agenciesincluding two new and popular brands in 2009 - Daawat rice from one of thelargest rice millers in the world and Pride cheese from Lactalis, one of thelargest dairy producers in Europe.

'We are simultaneously exploring inorganic growth strategiesincluding mergers, acquisitions and strategic partnerships,' he said.

Trafco is among the largest importers and distributors offast moving consumer goods (FMCG) and the largest importer of frozen foodproducts in Bahrain. It is also an exclusive distributor of major brands likeSadia, Rainbow, Noor, Tata Tea and Honig.

The company is a diversified conglomerate involved inmanufacturing, retailing, import and distribution of FMCG. Trafco subsidiary Bahrain Water Bottling & Beverages (BWBB) produces and distributes mineral water.Metro Markets, the retail arm of Trafco, is a chain of supermarkets with 12outlets across the length and breadth of Bahrain. The chain is set to furtherexpand with many more convenience stores.

Bahrain Fresh Fruits Company (BFFC), a wholly owned subsidiaryof Trafco, is also one of the largest fruit and vegetable importers anddistributors in Bahrain. Awal Dairy, a Trafco subsidiary, is the largest dairyproducts manufacturer in Bahrain with its products available across major GCCmarkets.

Bahrain Live Stock company (BLS), a subsidiary of Trafco inwhich the Bahrain government holds major shares, is the only company allowed toimport and slaughter live animals and to distribute the meat at a subsidisedprice. Qatar Bahrain Trading Company (QABA) is a 50 per cent joint venture withQatar Live Stock Company (semi-government) and plays an active role in Qatar'sfood business.

BWBB and Awal Dairy are gaining in popularity in the GCCregion.

'Trafco foresees a bright future for Bahrain's food industryin the coming years and has invested prudently and proficiently to reap thebenefits,' said the spokesman.

He said the move by government authorities to own farmlandsin neighbouring countries is an emerging trend in the GCC that seeks to answera shortage in food supplies and sharp price fluctuation in commodities.

Trafco's main shareholders are chairman Ebrahim Mohamed AliZainal, vice chairmen Yousuf Saleh Al Saleh and Khalid Abdulrahman Almoayed,directors and executive committee members Dr Esam Abdulla Fakhro, IbrahimSalahuddin, Sami Mohammed Jalal, Jehad Yousif Amin, Abdul Reda MohamedAldaylami, Aliyousuf Abdulrahman Engineer and Fouad Ibrahim Kanoo.