The fruits and vegetable consumption is very high in Oman. The country’s demand for fruits and vegetables is met by both domestic production as well as imports. The availability of arable land is limited, and water scarcity is extreme. Thus the country relies on international markets for up to 60 percent of its fruits and vegetable requirement. The fruit market in Oman reached XXX thousand metric tons in 2017 and is expected to reach XXX thousand metric tons by 2022. The Oman vegetable market reached XXX thousand metric tons in 2017 and expected to reach XXX thousand metric tons by 2022. Oman has better water access than its neighbors; hence, plans to increase its domestic production by 2022.
The Ministry of Agriculture and Fisheries’ (MoAF) strategy was recently approved by the Supreme Council. The government plans to increase the domestic production of fruits and vegetables through both horizontal and vertical expansion, by using modern techniques that will contribute to increasing the productivity and self-reliance on basic food commodities. The government enhances the private sector role in agricultural development and expand the sphere of its activities in the sector. Market Dynamics
Increase the domestic production as a result of government subsidies Despite the government’s efforts to increase its domestic production of fruits and vegetables, by providing subsidies for water and electricity, the constraints of water and arable land availability, limit the capacity from a significant growth. From the 309,500km2 of the country’s land, only 430,952 hectares, which is about 0.12 per cent of the available land, is cultivated. The existing demand for fruits and vegetables in the country is way higher than the domestic production. The risks and barriers associated with fruits and vegetable farming, specifically, are low, in comparison to the agriculture sector as a whole in Oman. Thus, there is a high potential for firms to cultivate fruits and vegetables in the country, using processes like hydroponics and aquaponics, as the government provides the farmers with water and eccentricity subsidies. As of now, the country will have to rely on imports to fill its food consumption gap.
Investing in farm land abroad; a government initiative The Government of Oman is encouraging agricultural companies to invest in foreign countries that have a comparative advantage in producing certain crops and import their products back into Oman. The crops targeted by this initiative include wheat, rice, barley, yellow corn, soybeans, and green forage. The Oman government is providing financial incentives to encourage investors in the country to take part in this food security initiative and invest overseas.
Market Segmentation – By Fresh Fruits and Vegetables
The agricultural market in Oman is segmented by type of products into fruits and vegetables. These are sub-segmented into onions, potatoes, tomatoes, garlic, cauliflower, cucumber, cabbage, beans, eggplant, lemons, apples, bananas, oranges, grapes, strawberry, watermelon, grapefruit, dates, and olives.
About the Market
PESTLE Analysis (Overview): Macro market factors pertinent to the region. Market Definition: Main, as well as, associated/ancillary components constituting the market. Key Findings of the Study: Top headlines about market trends & numbers. Market Dynamics Drivers: What are the key factors driving growth in the market? Restraints: Most relevant threats and restraints which hinder the growth of the market? Opportunities: Sectors of high return or quick turn around on investment? Market Concentration: Porter’s 5 Forces Analysis quantified by a comprehensive list of parameters. Chain Analysis Competition Market Share Analysis: Top players in the market (by value and volume). Company Profiles: Pertinent details about leading, high growth, and innovation-motivated stakeholders with contact, operations, product/service offerings, financials and strategies & insights.