Gulf Mushroom set for major capacity expansion

05 May 2010
MUSCAT -- Gulf Mushroom Products Co SAOG, which runs one of the largest mushroom farms in the Middle East, has announced a further expansion in capacity.

The company's Board of Directors, at the meeting on Monday, approved a proposal to increase the farm's capacity by about 50 per cent at a cost of RO 3 million.

To fund the expansion, the Board proposed a Rights Issue of RO 1 million, with the remainder financed through borrowings.

The Board decided to recommend the Rights Issue to shareholders for their approval at an EGM to be announced in due course.

Set up in 1997 as a joint stock company, Gulf MushroomGulf MushroomLoading... Products boasts a state-of-the-art plant based on technology, know-how and machinery acquired from Holland.

The facility has an installed capacity of more than 5 tonnes per day for cultivating and harvesting fresh button mushrooms (Agaricus Bisporous).

The company's products are marketed under the name Gulf Fresh.

To ensure a high degree of quality control, Gulf MushroomGulf MushroomLoading... makes its own compost based on wheat straw using the bare minimum of required chemicals.

Critical raw materials like casing soil and spawn are imported from internationally reputed manufacturers.
During the quarter ended March 31, 2010, the company produced 787 metric tonnes of fresh white button mushrooms compared to 660 metric tonnes produced during the same period last year, entailing an increase of 19 per cent.

The company achieved a sales turnover of RO 1.399 million compared to RO 1.175 million for the same period last year, an increase of 19 per cent.

Gross profit rose 24 per cent to RO 0.846 million compared to a gross profit of RO 0.682 million for the same period last year.

By Staff Reporter

© Oman Daily Observer 2010

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