A source at food manufacturing company Obourland has said that its new farm will be fully operational in November 2021.
The farm is set to provide 25% of the company’s milk production, and will be used for packaged milk products only. The management expects the farm to produce 7,000 tonnes of milk in 2022.
Buying the cattle for the farm will cost the company around €1.5m, with the farm expected to cost around €2bn in total. The company has announced that there will be only maintenance capex for cheese and milk segments.
The company is not planning to enter the bakery segment for now, but instead targets basic products. If the market grows enough to be able to absorb large number of players, then they might consider entering it, but that is not in their plans for the time being.
Obourland expects to close this year with sales of EGP 2.9-3bn.