Saturday, December 04, 2010

Middle East demand for organic products growing
01 Dec 2010


JEDDAH: The potential of the Middle East's market for organic products is under-explored and the sector has immense growth opportunities with a predominant youth population in the region taking to healthier and more eco-friendly lifestyles, said organizers of the eighth edition of the Middle East Natural and Organic Product Expo 2010 (MENOPE 2010) Tuesday.

The expo will be held at the Dubai International Convention and Exhibition Center Dec. 6-8.

Addressing a press conference, organizers of MENOPE 2010 said the regional organic food market, currently valued at approximately $300 million a year, was growing at a pace of nearly 20 percent, mainly driven by the rising affinity of the youth population to embrace healthy and natural lifestyles.

Eng. Nadim Al Fuqaha, managing director, Global Links, organizers of MENOPE 2010, said: "The organic products market in the region is at the threshold of growth and the current demand and sales volume reflects the state of European markets between 1985-1990. In comparison to other global markets, even at low volumes, Middle East is still the fastest growing destination for natural and organic foods."

He further said "the Middle East boasts of a highly eco-conscious populace which contributes to the success of the expo here. The expo still remains as the only one that caters to the natural and organic products market in the region. We are positive that the success of the previous years will continue to reflect on the eighth edition of the expo creating a prolific platform for the industry to grow and excel."

MENOPE 2010 will showcase a variety of products spanning across herbals and spices, food & beverages, cereal products, supplements, health care products, natural living, natural cosmetics, healing products, natural remedies, traditional medicines, spas, relaxation facilities, pet products and fabrics.

Joby Mathew Muricken, project manager of the event, said the appeal of MENOPE as a platform for global organic product companies is tremendous.


© The Saudi Gazette 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20101201033329/Middle%20East%20demand%20for%20organic%20products%20growing%20
UPDATE: Saudi Govt Creates Co For Intl Agriculture Investments
Tuesday, Nov 23, 2010
By Nour Malas
Of ZAWYA DOW JONES


ABU DHABI (Zawya Dow Jones)--Saudi Arabia has created a government company for agricultural investment abroad as the kingdom phases out local wheat production to save water resources and is considering boosting its wheat reserve supply to last one year, the country's agriculture minister said Tuesday.

"The government in Saudi Arabia has created a new company, a totally government company, for investments abroad," Fahad Balghunaim said on the sidelines of a forum in Abu Dhabi, the capital of the United Arab Emirates.
Advertisement
Ecomagination: what?s green for our customers?

"Any Saudi private company that wants to invest abroad and who has a feasibility study can present it to this government company, and if it is feasible [the government] will join it," Balghunaim said, adding that the kingdom has prioritized water security over local food production in its food security policy.

"We do not have enough water supply in Saudi Arabia to cover our needs," he said. "That meant we have to move from depending on our local production to producing overseas."

Saudi Arabia, the Middle East's biggest economy, falls into the category of 'hyper-arid' countries and has neither major rivers nor lakes. The desert kingdom, like other countries in the Middle East region, is facing extreme renewable fresh water challenges and--at the same time--needs to meet very high water consumption levels through costly seawater desalination.

The new government-owned company for investment in agriculture abroad could also team up with private companies looking to invest in agriculture outside Saudi Arabia, Balghunaim said.

He said Saudi Arabia was looking at boosting its wheat reserves to last one year, from a current six months supply.

"Now, we have a six-month wheat supply and we are thinking of increasing it to maybe one year," he said, adding that the ministry will work within a larger plan involving other government organizations.

Saudi Arabia is still committed to entirely eliminating wheat production by 2016, though it could keep small plots of land for special purposes, such as organic wheat production, Balghunaim said.

"Some small areas will be planted for special purposes, like organic wheat, otherwise we will depend totally on imports," he said.

Balghunaim also said that while local farmers may continue to produce wheat, it was unlikely to be "economically feasible" for them given the government will be importing wheat from abroad and selling it at subsidized prices.

"The government has decided it will not buy wheat from local production farmers. Whether the agriculture sector will continue to produce wheat or not is up to them," he said.

-By Nour Malas, Dow Jones Newswires, +97150 2890223; nour.malas@dowjones.com

Copyright (c) 2010 Dow Jones & Co.

(END) Dow Jones Newswires

News Link: http://www.zawya.com/story.cfm/sidZW20101123000071/Agricultural%20Investments

Wednesday, December 01, 2010

Saudi investors facing obstacles in Argentina

By HAZEM AL-MUTTARI
30 Nov 2010

RIYADH: Dr. Fahad Balghunaim, Saudi Minister of Agriculture, said the exponentially high price of fodder is chiefly responsible for the rise in prices of imported and locally produced chickens.

He said the feed price increase is estimated at 40 percent, and noted that Saudi poultry producers have flooded the Ministry with appeals to subsidize the fodder.

"We are considering these applications," he said.

Dr. Balghunaim commented on the matter during the visit Monday by Argentina's Agriculture Minister Julian Dominguez and his accompanying delegation to King Abdul Aziz Center for Genuine Arab Horses in Riyadh.

He said one of the major efforts in the field of economic exchange is to translate the initiative of King Abdullah, Custodian of the Two Holy Mosques, of investing in agriculture in foreign countries into practical measures.

The King is determined to secure a stable, reasonably priced food supply for the Kingdom and the Ministry of Health has tasked the private sector with implementing this initiative, Dr. Balghunaim said.

The private sector has responded positively by entering into partnerships with multinational companies investing in agriculture and investing in countries that are rich in agricultural resources, he said.

He said a Saudi business delegation visited Argentina to explore areas of economic exchange and discovered three obstacles to investment there.

There are concerns about tax exemptions, an investment protection pact and a tax on foreign investors, but an official said efforts are underway to address them.

Argentina's agricultural minister said "we are making intensive contacts with the Foreign Ministry in Argentina to resolve these three issues."

There are no restrictions for Saudi investors to possess lands in his country, he said.

There are some restrictions on the purchase and lease of some projects, but they have not been implemented, he added.

In a related matter, Saad Al-Meqbl, director general of Agricultural Affairs in the Eastern Province, has announced that 12 poultry projects have been shut down because their owners failed to follow regulations.

The projects, which he described as outdated, were in the urban zone.

He said his administration gave the owners a grace period so they could rectify the shortcomings, but they took no substantive action.

Al-Meqbl said a committee of officials from the ministries of Agriculture and Municipal and Rural Affairs have been effective in conducting surprise inspection tours of unlicensed shops selling live chicken.

The inspectors have confiscated more than 15,000 live chicken and the instruments used to slaughter them, he said.

Al-Meqbl further said owners of the poultry farms who violated the regulations were fined more than SR393,000 and that one of them was fined SR184,000 for unlicensed slaughtering of chicken.

Fines will be increased to SR1 million to further deter people, he added.

© The Saudi Gazette 2010

Middle East demand for organic products growing

01 Dec 2010

JEDDAH: The potential of the Middle East's market for organic products is under-explored and the sector has immense growth opportunities with a predominant youth population in the region taking to healthier and more eco-friendly lifestyles, said organizers of the eighth edition of the Middle East Natural and Organic Product Expo 2010 (MENOPE 2010) Tuesday.

The expo will be held at the Dubai International Convention and Exhibition Center Dec. 6-8.

Addressing a press conference, organizers of MENOPE 2010 said the regional organic food market, currently valued at approximately $300 million a year, was growing at a pace of nearly 20 percent, mainly driven by the rising affinity of the youth population to embrace healthy and natural lifestyles.

Eng. Nadim Al Fuqaha, managing director, Global Links, organizers of MENOPE 2010, said: "The organic products market in the region is at the threshold of growth and the current demand and sales volume reflects the state of European markets between 1985-1990. In comparison to other global markets, even at low volumes, Middle East is still the fastest growing destination for natural and organic foods."

He further said "the Middle East boasts of a highly eco-conscious populace which contributes to the success of the expo here. The expo still remains as the only one that caters to the natural and organic products market in the region. We are positive that the success of the previous years will continue to reflect on the eighth edition of the expo creating a prolific platform for the industry to grow and excel."

MENOPE 2010 will showcase a variety of products spanning across herbals and spices, food & beverages, cereal products, supplements, health care products, natural living, natural cosmetics, healing products, natural remedies, traditional medicines, spas, relaxation facilities, pet products and fabrics.

Joby Mathew Muricken, project manager of the event, said the appeal of MENOPE as a platform for global organic product companies is tremendous.

© The Saudi Gazette 2010

Saturday, November 27, 2010

GCC seeks cooperation to achieve food security
Anwar Ahmad
28 November 2010,


The environment, agriculture and food security ministers of the GCC region met and agreed to enhance technology to evade the lurking threat of drought in the region.

The Abu Dhabi Declaration was announced during the four-day conference, ‘SIAL Middle East 2010,’ organised by the Abu Dhabi Food Control Authority (ADFCA) at Abu Dhabi National
Exhibition Centre.

Speaking at the conference, Fawzi Al Sultan, President of the International Institute for Food Research Policy on Food Security and Safety at the global level and the Middle East and North Africa, said the population in the Middle East and North Africa would reach 700 million by 2050 and as per World Bank reports, the per capita availability of water in the Middle East and North Africa will be reduced by half. This reduction will result to infertile agricultural land, high prices of biofuel and climate changes that will lead to reduction in crop production by 11 per cent, Al Sultan said.

The Declaration emphasised cooperation between the public and private sectors in the development of agricultural and food industries and marketing of agricultural products. This can be achieved by strengthening collaboration among regional and international organisations related to food security, and reinforcing the capacity of United Nations Organisations related to food security, primarily the Food and Agriculture Organisations world wide.

On behalf of Shaikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, Dr Rashid Ahmad bin Fahad, Minister of Environment and Water, said the efforts of the Gulf Cooperation Council in the field of agricultural development and enhancing food security and development policies are vital and they should be in line with international best practices. The Minister stressed the need to strengthen cooperation among Gulf countries to achieve food security through strategies at the national and regional level.

According to Dr Jacques Diouf, Director General of the Food and Agriculture Organisation (FAO), the world today is facing a new crisis over rising food prices which exacerbated the problem of food security. Diouf stressed that an interest in agriculture would to a large extend help eradicate poverty and achieve the food security.
Deals worth Dh918m signed

The first Middle East edition of the world’s largest food industry exhibition was also organised as part of the SIAL Middle East 2010 conference. Food industry traders signed trade deals of nearly
Dh918 million with different participating companies.

Around 400 exhibitors from more than 40 countries participated in the exhibition, with 80 per cent of them presenting their products in the region for the first time.

According to the organisers, total deals struck during the event amounted to Dh183.5 million ($50 million), while the various memoranda of understanding are valued at over Dh734 million (around$200 million). All the MoUs will graduate to actual trade agreements in the next three months.

Using Abu Dhabi’s stature as a major trade centre for a vantage point, the participants plan to reach
out to the rest of the region with their products. Rashid Mohamed Al Shariqi, Director-General, ADFCA said “The GCC Ministerial Forum on Integrated Food Policies, held on the sidelines of SIAL, played a large role in turning the event into a great success, The pre-eminent position of Abu Dhabi as a commercial hub with enormous purchasing power and the vital importance of food security for the whole Gulf region also are factors that clinched this success.”

Mohamed Jalal Al Reyaysa, chairman of the organising committee for SIAL and the International Date Palm Festival and spokesperson of ADFCA, said the
massive interest from the food industry in its first edition guaranteed a much bigger participation in the second edition next year.

News Link: http://www.khaleejtimes.com/DisplayArticle08.asp?xfile=data/theuae/2010/November/theuae_November761.xml&section=theuae
Sunday, 28 November 2010 - 22 Thul-Hijjah 1431 H
BUSINESS
Saudi sugar prices surge, to rise further on global supply deficit


JEDDAH: Sugar prices in Saudi Arabia have recently jumped more than 20 percent and are expected to surge further in the near future as local traders have begun importing sugar at higher prices due to weaker global supply, dealers said Saturday.

Prices started to rise more frequently with the beginning of the import season and the signing of new contracts in October, Salem Al Hadi, a manager of a local food distribution company, said. He added that traders will be forced to increase prices with the depletion of inventories purchased at old prices.

Forecasts of a sharp surge in prices come at a time sugar production in major producers is expected to decline, according to international analysts.

Brazil, the world’s largest sugar producer, accounts for 54 percent of global exports, according to the US Department of Agriculture.

Growers in the region will produce “at best” about 33 million to 34 million tons next year, little changed from this year, he said. Industry group Unica in August forecast output in the Center South to total 33.7 million tons this year.

Sugar producers in the Center-South, Brazil’s main producing region, plan to replant about 1.4 million hectares (3.5 million acres), or 20 percent of their farmland, to replace aging plants, said Paulo Roberto de Souza, chief executive officer of Copersucar SA, the Brazilian cooperative that ships more sugar than Thailand, the world’s second-largest exporter.

Copersucar is a Sao Paulo-based sugar and ethanol cooperative with 43 associate mills. It plans to export 6 million tons of the sweetener next year. Thailand plans to ship 4.7 million tons next year, according to the US Department of Agriculture.

Brazil’s Center-South, where about 90 percent of the country’s sugar and ethanol is produced, will replant farmland between January and March, Souza said. That means new crops won’t be ready when the harvest starts in April, he added.

The move will bolster sugar prices because it will probably lead to an unexpected deficit in the 2011-2012 crop year, following a global surplus this year, Souza said. On Nov. 17, the International Sugar Organization forecast a 2.5 million-ton surplus in 2011-2012, up from an excess of 1.3 million tons this season.

Sugar prices have surged 98 percent since mid-May and touched a 29-year high on Nov. 9 on concern that exports from producers such as India may trail expectations. Prices will likely stay above 25 cents a pound in the first half of next year, Souza said.


– Saudi Gazette/QJM

News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010112888126

Friday, November 19, 2010

Lebanon's wheat production at risk
The Daily Star
19 November 2010


BEIRUT: Lebanon’s wheat production is at risk from virulent strains of fungi that threaten to devastate production, increase food insecurity and raise prices, a UN report has warned.

An unusually mild winter 2009– 2010 already resulted in a “serious” outbreak in the country of the mutated, and especially potent, adaptation of “rust fungi” but experts are fearful that knock-on effects of global warming will only further intensify the country’s susceptibility in the coming years.

The disease has the capacity to destroy some 50 percent of wheat stock and is presently being blamed for the loss some 1 million hectares in Syria. If serious steps are not taken to monitor the spread of rust fungi and take measures to diversify wheat crops, the situation could spread across the region, said the Food and Agricultural Organization (FAO) Food Outlook report, released Wednesday.

This, combined with other global supply-and-demand factors, threatens to raise food prices further in 2011 and could raise the global food-import bill in excess of $1 trillion.

This level has not seen since the devastating 2008 food-price crisis, where the price of wheat rose by 136 percent in two years, causing widespread political, economic and social insecurity, including violent food riots in Egypt where the price of bread doubled in just a few months.

Economic pressures are presently hitting food prices in Lebanon, where the price of certain vegetables and meat have skyrocketed in recent months.

The price of meat and vegetables, have soared to near-record highs in recent months, with the price of certain goods, such a tomatoes, rising by 100 percent and 400 percent on some varieties, according to Agriculture Ministry figures.

Agriculture Minister Hussein Hajj Hassan has predicted an easing of the situation by mid-November but the ILO report stresses that countries will remain vulnerable to further shocks if significant step are not made to increase cereal, and especially, corn and wheat production.

“For major cereals, production must expand substantially to meet utilization and to reconstitute world reserves,” ILO said. “Against this backdrop, consumers may have little choice but to pay higher prices for their food.”

Meat prices, however, that are linked to cereal prices and have been high of late, are expected to rise only slightly in the next couple of months, slightly offsetting the rise in other commodities like sugar and fish, the report said.

Hajj Hassan said that price hikes have been aided by external factors, namely global droughts that brought on a surge in international meat prices in September, but gave assurances that prices should range between LL12,000 and LL15,000, and not the LL15,000 to LL24,000 price bracket that they have risen to in recent weeks.

Two weeks ago, spurred on by the Agriculture Ministry, the economy minister drafted a law that would restrict traders’ profit margins to 20 percent. Moreover, the ministry has set up a hotline at the number 1739 where consumers may report excessive prices.


© Copyright The Daily Star 2010.

News Link: http://www.zawya.com/story.cfm/sidDS19112010_dsart45(2)/Lebanon%27s%20Wheat%20Production%20At%20Risk

Wednesday, November 10, 2010

MEPA rebuffs report on winter storms
The Saudi Gazette
10 November 2010


JEDDAH: The Meteorology and Environmental Protection Authority (MEPA) has rejected a report that the Kingdom will be hit by unusual and heavy storms over the coming three months.

At a press conference here Tuesday, Prince Turki Bin Nasser Bin Abdul Aziz, President of MEPA, said his organization is the only body authorized to monitor weather conditions and issue reports.

Prince Turki's comments came after some newspapers cited Russian Meteorology Center report showing that an unusual cold front would hit most parts of the Kingdom over the next three months. The report also predicted that above-average rainfall would hit central parts of the country.

Prince Turki said MEPA was not connected in any way with the report and that it lacked "credibility".

He said all international centers involved in weather research depend on the results of the statistical weather forecasting samples which analyze the movement of the wind in the stratosphere and changes in the average temperature of the surface of the oceans. Weather stations also monitor changes in the El Ni?o and La Ni?a-Southern Oscillation (ENSO), he said.

ENSO is a periodic climate pattern - warm and cold respectively - which occurs across the tropical Pacific Ocean every three to seven years. ENSO causes extreme weather such as floods, droughts and other weather disturbances in many regions of the world, according to Wikipedia.

He said all these elements used in weather forecasts did not show that the Kingdom would be hit by a severe winter and heavy downpours.

On preparations for Haj, Prince Turki said the authority has assigned weather forecasters and analysts at the holy sites, Makkah, Madina and also on highways to monitor the weather and air quality.

Apart from this, there are highly trained climate specialists stationed at the Civil Defense emergency centers to provide a summary of the weather forecasts to the Civil Defense. The authority has also updated its Haj website which is linked to the Civil Defense Command and Control Room and its Operation Room at the holy sites.

Prince Turki said this webpage provides weather reports on the autumn season corresponding to this year's Haj. It also provides weather forecasts for five consecutive days, which are updated daily. It also provides a daily weather forecast report for Makkah.

© The Saudi Gazette 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20101110034309/KSA%3A%20MEPA%20rebuffs%20report%20on%20winter%20storms%20
World must act today to boost rice supply: experts
AFP


HANOI, Nov 09, 2010 (AFP) - Urgent action is needed to reverse inefficient farming methods and boost the world's supply of rice in order to prevent rising poverty and hunger, experts told a major world rice congress on Tuesday.

"We must take action now, not next week, not next month, not next year, but today," Kanayo Nwanze, president of the UN's International Fund for Agricultural Development, told the gathering in Hanoi.

Rice is the staple food for more than three billion people, about half the world's population, and rice-producing areas are home to nearly 560 million extremely poor people who live on less than 1.25 dollars per day.

"Projected demands for rice will outstrip supply in the near to medium term unless something is done to reverse current trends," Robert Zeigler of the International Rice Research Institute (IRRI) told the forum.

He said these trends included "slow productivity growth and inefficient, often unsustainable management of natural resources".

Vietnam is the world's second-biggest exporter of rice, behind Thailand, but Prime Minister Nguyen Tan Dung said the country's food production still faced many challenges, including rapid population growth and more frequent natural disasters.

"Ensuring food security is not merely an economic or humanitarian activity," he said. "It actively contributes to national as well as global socio-political stability."

The three-day meeting comes after an IRRI report said Asian countries need to sharply increase and better manage rice stocks to improve food security in the region, where 65 percent of the world's hungry live.

It said that about 90 percent of rice is grown in Asia, on more than 200 million rice farms.

According to an organiser of the congress, Minister of Agriculture Cao Duc Phat, the event aims to "feed the world's fast growing population," which may come up to nine billion people by 2050.

The event, held every four years, is the world's largest gathering of the rice industry and brings together more than 1,000 researchers, traders, agricultural ministers and other delegates from Asia and beyond.

tmh-rob/dla/txw

© Copyright AFP 2010.

News Link: http://www.zawya.com/Story.cfm/sidANA20101109T070539ZDLL72/World%20must%20act%20today%20to%20boost%20rice%20supply%3A%20experts

Sunday, November 07, 2010

Sunday, 07 November 2010 - 30 Thul-Qedah 1431 H
NATION
‘Barley prices to double cost of sacrificial sheep’
FARIS AL-QHATANI


RIYADH: An animal breeder here says the skyrocketing price of barley – used to feed his animals - is likely to double the cost of sacrificial sheep for consumers.

Khaled Al-Shameri, a sheep breeder in Riyadh said: “The price of barley is out of control and at a level we have not seen before. Believe it or not, a bag of Australian barley is now SR53 compared to SR31. Also, the price of one bag of dried bread is now SR15. In the past we used to get it for SR5.” He said the barley prices will be reflected in the price of sheep, and will probably double the cost.

He appealed to the Ministry of Commerce and Industry to intensify its campaigns, in conjunction with the Riyadh Mayoralty, to find and punish merchants who tamper with the barley price.
Al-Shameri said there is an abundant supply of barley on the market. The only reason for the astronomical prices was the greed of the barley importers, he added.

He said this also poses a crucial question about the alleged absence of the Consumer Protection Society. He said it was the society’s task to protect consumers from unscrupulous merchants trying to make quick profits.

– Okaz/Saudi Gazette

News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010110786935

Wednesday, November 03, 2010

Canada is Saudi Arabia's largest wheat source
Arab News
03 November 2010


RIYADH: Saudi Arabia, which ranks as the largest importer of Canadian wheat in the Middle East and North Africa region, will receive fresh Canadian wheat consignments over the next seven months in a staggered schedule.

The wheat exports from Canada comes after the state-owned Grain Silos and Four Mills Organization (GSFMO) purchased 990,000 tons of wheat from Canada and Germany following a tender announced last year.

"Canada, a large producer of food, also supplied 1.5 million tons of wheat to the Kingdom last year," said Canadian Ambassador David Chatterson on Monday night.

"This was one of the biggest Canadian sales ever, almost half of the Kingdom's total annual consumption," said Chatterson, adding that Ottawa can be a potential partner of Riyadh in many fields, especially in terms of joining hands together in ensuring food security locally, regionally and globally.

The envoy was speaking during a reception hosted at his residence to honor the sponsors of the Terry Fox Run, in which about 500 volunteers participated to raise money for cancer patients.

Top executives and representatives of the companies that sponsored the event including Al-Faisaliah Hotel, Four Seasons Hotel, Nas Air, Centerpoint, Coca-Cola Bottling Plant of Saudi Arabia, Saudi Telecom, and Arinc Saudi Arabia Ltd., all attended.

Referring to the Canadian exports of foodstuffs to the Kingdom, Chatterson said that Canada sold more wheat to Saudi Arabia last year than any other country, a tantalizing trade relationship that has piqued Ottawa's interest.

On the delivery of the new wheat consignments, a GSFMO report said that all wheat consignments would be delivered between Oct 2010 and April 2011. Ten shipments would be sent to Jeddah, while eight shipments will go to the eastern port of Dammam, added the report.

"Saudi Arabia's move to import more wheat has opened a new market for Canadian producers," said the report, while referring to the progressively growing relations between the two countries.

Chatterson also pointed out that an agriculture delegation would visit the Kingdom this month. He described growing relations as "a sort of rediscovery" that had been neglected during the last few years. He also revealed forthcoming programs, including a visit by a Shoura delegation to Canada next month.

He said that a large Canadian health delegation would also visit the Kingdom in January. This is in addition to a major Canadian power and water delegation organized by Export Development Canada (EDC) to visit Riyadh early next year, Chatterson added.

Canadian companies will better understand how to tap into opportunities in the Kingdom's power and water sectors.

EDC reports that power and water projects are booming in the six-nation Gulf Cooperation Council, with over $60 billion of projects planned over the next five years.

By GHAZANFAR ALI KHAN

© Arab News 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20101103033100/Canada%20is%20Saudi%20Arabia%27s%20largest%20wheat%20source