Thursday, November 16, 2006

Saudi farm to grow olives in Hail
Arab News 9 July 1999


Riyadh --- The Kingdom's policy to encourage crop diversification as part of its water conservation program is paying dividends, with a Saudi farm becoming the first in the Kingdom to grow olives at its facility in Hail.

We are also looking for a joint venture partner to go into the production of peanut butter, "Turki Faisal Al Rasheed, president of Golden Grass, Inc., told Arab News. He said their peanut farm at Hail is already producing 7,000 to 10,000 tons of peanut annually. Hence there is a good potential for peanut butter, which is currently being imported.

Asked about the olive production at his farm, Al Rasheed said the first crop of six tons is expected in three months. At present, Saudi Arabia is importing olives from Spain, Morocco and other Maghreb countries. Local production of olives could set the state for the extraction of olive oil in future. According to him, the Kingdom's crop diversification program owes its success largely to the government's encouragement and support in the form of subsidies which range from 50 percent of the official price on irrigation engines and pumps to 45 percent of the official price of farm machinery, 30 percent each of the total cost of poultry/dairy farms equipment, besides full cost of air transport (more than 50 cows per shipment), etc.
As a result, there has been a remarkable growth in the production of most categories of vegetables, fruits, meat, milk and eggs. Replying to a question on the payment of arrears to farmers, Al Rasheed said that some 38,000 people will benefit, with the latest installment of dues amounting to SR 3 billion payable by September 1998. A total of SR 18 billion has been paid to the farmers during the last three years, he observed.

No comments: