UAE dairy giant set for major investment in 2012

Al Ain Dairy plans to invest AED100m in new cow farm, AED150m on factory expansion
Al Ain Dairy is planning a big investment in expansion plans next year
By Andy Sambidge
Fri 23 Dec 2011 10:23 AM

The largest dairy producer in the UAE has announced major expansion plans for 2012 when it aims to double its output.

Al Ain Dairy plans to invest AED100m in a new cow farm while another AED150m will be spent on expanding the company's factory, CEO Abdullah Saif Al Darmaki said in a statement.

He said the company has also invested nearly AED3m on a new camel milking parlour as it looks to increase production volumes across its product portfolio next year.

The company added that it is also planning to introduce new products to market in 2012 to meet the "demands of the growing consumer market".

Chief operating officer Shashi Menon said: “It is an exciting time for us at Al Ain Dairy. We will shortly be announcing yet more new product innovations - some completely new product such as an exciting range of camel milk ice creams.

"As we go forward we also eye further growth from potential new markets and are ready to meet the challenge that will propel production and supply chain to the next level."

The company said it will leverage on the global increase in demand for camel milk, taking an "aggressive approach" to marketing and branding in the coming year.

Al Ain Dairy started operations in 1981 with just 200 livestock. Today the company has well over 5,000 cows and 2,500 camels with further plans to extend their livestock count substantially in the coming year.

In September, Al Rawabi Dairy Company, a major producer of dairy products and fresh juices in the GCC, said it was investing $200m as part of its expansion plans.

The dairy company, which serves Dubai, Abu Dhabi, Sharjah, Al Ain, the Northern Emirates, Qatar and Oman, said it plans to extend its regional footprint to Bahrain and Kuwait, where it will replicate the business model it runs in the UAE.

Al Rawabi Dairy said in a statement that it is also looking to invest a further $100m this year to further augment its milk production and processing capacity.

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