Al-Maysarah group, through one if its subsidiaries, has secured an opportunity with the Ministry of Industrial and Minerals of the Republic of Iraq to Rehabilitate and Operate a Powdered Milk Repackaging Facility located in the Abu Ghreib District, 25 km out of Baghdad Center. The facility’s area is about 150,000 m2, operations at the facility were halted by the government in 1998 due to governmental subsidies on powdered. The facility was then vandalized in the after math of the 2003 war. The facility is planned to have a product matrix consisting of three types of powdered Milk: 1. Whole-Fat, 2. Low-Fat, 3. Skimmed, packaged in multiple weights ranging 0.4 – 5 kg. Target production capacity is 30,000 Ton for years (1-2)60,000 Ton for years (3-4), and up to 120,000 Ton by year 5.
According to preliminary market research, powdered milk is considered to be one of the top 3 dairy products consumed by Iraqi citizens/entities across a wide demographic, as well as a commercial and industrial operations due to the lack of availability of acceptable quality raw milk. Most powdered milk products on the market currently are imported from neighboring countries, and from repackaging not producing companies. It is estimated that the Iraqi Market consumes between 120,000 – 200,000 Ton of powdered milk per year. The Iraqi government’s food stamps welfare plan allocates 6 kg of powdered milk / citizen. At 36 million, this projects 216,000 Tons of Demand by the welfare program. Detailed Market research for size, competitor survey, and sales channels is being conducted at the moment.