Egyptian agriculture: Incentives, obstacles
tfrasheed@goldengrass.com
http://www.saudiinfocus.com
Egypt has an abundance of fertile agricultural lands and plenty of irrigation waters (Nile River, streams, rain waters and underground waters). The weather is favorable for the natural growth of various plants and different kinds of agricultural products (farm and horticulture).
However, the dependence on manual cultivation and the failure of the government and private agricultural projects reveal some fundamental flaws and problems:
• Nonuse of pivotal sprays and nonexploitation of underground waters for irrigation of plants in case of shortage of rainfall and during dry season.
• Absence of full mechanization in cultivation, fertilization, insecticides, harvesting, peeling, cleaning and packing
• Lack of a plan for improvement of seeds and nonintroduction of improved varieties of seeds.
There are also pessimistic forecasts. A report issued by the US Agriculture Department revealed that Egypt will have a problem importing wheat in 2016, when Saudi Arabia will finally stop wheat cultivation and rely on imports for its wheat requirements.
In the meantime, an Egyptian government report says that “water security” is under threat due to the increase in population.
The 55.5 billion cubic meter quota for Egypt from Nile waters in addition to the implemented water projects at a cost of 35 billion pounds in the past years will not prevent shortage of irrigation water by 2030 if the increase in population continues at the current rate.
One of the best solutions will be to establish a large stock agricultural company owned by Saudi and Egyptian investors. This will not take place unless the existing ownership law is amended. According to this law, the government sells one acre for 50 Egyptian pounds on the condition that the investor builds huge projects and employs thousands of people. This will create many direct employment opportunities for farmers as well as qualified and experienced graduates of agriculture colleges, particularly those returning from Saudi Arabia.
The investment in large agricultural projects will also boost the Egyptian economy. It will create new sources of income while the improvement in living standards will revive the populated areas near the agricultural projects and encourage service suppliers to enter these areas. This will facilitate the centralization of government services.
The settlement of a large number of people near the agricultural projects will curb the influx of migrants into big cities. The financial returns of these projects will surely lessen the impact of any economic crisis.
It is well known that introduction of agricultural mechanization will mean abundant production exceeding the local needs and providing surplus for export. This will lessen pressure on foreign currency.
Egypt is in need of huge companies for the best exploitation of available agricultural lands. But unfortunately neither Egyptian citizens nor foreign investors have shown any enthusiasm toward the government initiative while the government itself has not made any promise to carry out huge projects in these areas.
In fact, the currently invested area represents only a small portion of the total fertile lands. In the meantime, there is food shortage and urgent need for wheat — the product Egypt imports in large quantities. This constitutes a burden on the foreign currency reserves. In addition to all these facts, the imported wheat is of inferior quality and — in some cases — not good for human consumption.
It is quite clear that given the availability of vast fertile agricultural lands, there is no justification for the continuous import of wheat and the pressure on foreign currency reserves. Therefore, it is necessary to make the best use of the qualified Egyptian cadres and resources in huge agricultural projects.
All obstacles to investment and land ownership should be removed if Egypt is to develop its agriculture. This task should not be assigned to the committees whose practices in the past have only discouraged local and international investors.
What happened to the Egyptian agriculture graduates’ agricultural lands is one of the tragedies attributed to these committees. These graduates were given barren lands at cheap prices. But once they reclaimed the lands by spending so much money on it, the committees asked them to pay new prices for the lands as if they were selling them reclaimed lands. The result is that the committees killed the graduates’ project and frightened the investors. This discouraged agricultural investments in Egypt.
— Turki Faisal Al Rasheed is a Saudi writer.
http://www.arabnews.com/?page=7§ion=0&article=117515&d=25&m=12&y=2008
Thursday, December 25, 2008
Saturday, November 29, 2008
What ails Sudan’s agricultural sector
Turki Faisal Al-Rasheed Arab News
Saudi Arabia is in a better position to forge politico-economic partnerships with other countries with a view to achieving food security. The best partner in this respect is Sudan, known as the food basket of the Arab world. But foreigners are reluctant to invest in Sudan and the efforts made by the Sudanese government to overcome this reluctance have not met with much success. Under the deteriorating global situation, Arab countries that have agricultural potential, notably Sudan, have to bring in modern technologies and look for the best of encouraging agricultural investment and offering incentives to achieve this aim.
Why not? Sudan is blessed with fertile agricultural lands (more than 200 million acres). Only 20 percent of these lands are being utilized. Abundant irrigation facilities are also available (river waters including that of the Nile, rain waters and underground water). Furthermore, Sudan has a variety of weather (from 30 to 48 degrees centigrade), ranging from desert, and Mediterranean, savanna and Equatorial weather. There are different kinds of plantations and favorable environment for natural growth of various plants and agricultural products (farm and horticulture).
There are ample natural pastures and animal wealth while rainfall allows the growth of forests and woods. But despite the availability of suitable environment for growing various seeds, there are problems such as:
• Insufficient care given to seeds;
• No use of sprays and no exploitation of underground water for irrigation of plants in case of shortage of rainfall and during dry seasons.
• Lack of full mechanization in cultivation, harvesting, peeling, cleaning and packing; fertilizers and insecticides are applied in old ways.
• Lack of a plan for improving seeds and not using improved varieties of seeds.
• Sudan’s domestic problems have been internationalized, giving the impression of political instability in the country. This discourages investors.
• There is no clear ownership policy. The land ownership system is based on land lease, that is the right of benefiting from the land for a specific number of years. Therefore there is no incentive to attract huge projects.
• The agricultural lands lie adjacent to the oil excavation areas and it is quite possible that the government may suddenly discover that the land given to an investor is located over an oil well and may confiscate it and give the investor another land. This means wasting the efforts, time and money of the investors.
• Sudan is a country of shantytowns and people are settling in areas the government wants to award to investors. This means the investors will have to pay money for resettling the people living near the lands awarded to them.
• The investors are also obliged to provide water to these people from the wells drilled by them for agricultural projects.
• The proposed areas for investment lack the necessary infrastructural facilities, and this increases the investment costs, especially in transportation and energy.
• There are any number of administrative fees, especially in the states. This is apart from those imposed by the central government. Consequently, the investors are confused as to whom they should deal with.
To sum up:
Sudan is in need of huge companies to invest in the agricultural lands in an ideal way. As noted above, lands suitable for agriculture are more than 200 million acres with less than 20 percent under use.
In the past, Sudan used to export large quantities of peanuts and it has quit the overseas markets due to the above-mentioned factors.
Sudan imports two million tons of wheat, its staple food, annually. This can’t be justified when 160 million acres are available for cultivation.
The virgin land becomes barren when left uncultivated.
Huge agricultural investments will go a long way toward reducing unrest in Sudan. Investments in huge agricultural projects boost national income, reduce import bill (for agricultural products), provide a healthy, safe and permanent source of food, preserve the honor of the state and its people and protect the country against foreign intervention and economic pressures. All this means that senior Sudanese officials in charge of regulating agricultural investment system must reconsider the existing policies by eliminating their negative aspects and adding more incentives to attract national and foreign investors. The policies should be in accordance with the interests and ambitions of investors. Sudan should not allow a situation to continue where the virgin and fertile lands become barren while the government has to depend on imports to feed its hungry people.
— Turki Faisal Al-Rasheed is a Saudi writer.
Turki Faisal Al-Rasheed Arab News
Saudi Arabia is in a better position to forge politico-economic partnerships with other countries with a view to achieving food security. The best partner in this respect is Sudan, known as the food basket of the Arab world. But foreigners are reluctant to invest in Sudan and the efforts made by the Sudanese government to overcome this reluctance have not met with much success. Under the deteriorating global situation, Arab countries that have agricultural potential, notably Sudan, have to bring in modern technologies and look for the best of encouraging agricultural investment and offering incentives to achieve this aim.
Why not? Sudan is blessed with fertile agricultural lands (more than 200 million acres). Only 20 percent of these lands are being utilized. Abundant irrigation facilities are also available (river waters including that of the Nile, rain waters and underground water). Furthermore, Sudan has a variety of weather (from 30 to 48 degrees centigrade), ranging from desert, and Mediterranean, savanna and Equatorial weather. There are different kinds of plantations and favorable environment for natural growth of various plants and agricultural products (farm and horticulture).
There are ample natural pastures and animal wealth while rainfall allows the growth of forests and woods. But despite the availability of suitable environment for growing various seeds, there are problems such as:
• Insufficient care given to seeds;
• No use of sprays and no exploitation of underground water for irrigation of plants in case of shortage of rainfall and during dry seasons.
• Lack of full mechanization in cultivation, harvesting, peeling, cleaning and packing; fertilizers and insecticides are applied in old ways.
• Lack of a plan for improving seeds and not using improved varieties of seeds.
• Sudan’s domestic problems have been internationalized, giving the impression of political instability in the country. This discourages investors.
• There is no clear ownership policy. The land ownership system is based on land lease, that is the right of benefiting from the land for a specific number of years. Therefore there is no incentive to attract huge projects.
• The agricultural lands lie adjacent to the oil excavation areas and it is quite possible that the government may suddenly discover that the land given to an investor is located over an oil well and may confiscate it and give the investor another land. This means wasting the efforts, time and money of the investors.
• Sudan is a country of shantytowns and people are settling in areas the government wants to award to investors. This means the investors will have to pay money for resettling the people living near the lands awarded to them.
• The investors are also obliged to provide water to these people from the wells drilled by them for agricultural projects.
• The proposed areas for investment lack the necessary infrastructural facilities, and this increases the investment costs, especially in transportation and energy.
• There are any number of administrative fees, especially in the states. This is apart from those imposed by the central government. Consequently, the investors are confused as to whom they should deal with.
To sum up:
Sudan is in need of huge companies to invest in the agricultural lands in an ideal way. As noted above, lands suitable for agriculture are more than 200 million acres with less than 20 percent under use.
In the past, Sudan used to export large quantities of peanuts and it has quit the overseas markets due to the above-mentioned factors.
Sudan imports two million tons of wheat, its staple food, annually. This can’t be justified when 160 million acres are available for cultivation.
The virgin land becomes barren when left uncultivated.
Huge agricultural investments will go a long way toward reducing unrest in Sudan. Investments in huge agricultural projects boost national income, reduce import bill (for agricultural products), provide a healthy, safe and permanent source of food, preserve the honor of the state and its people and protect the country against foreign intervention and economic pressures. All this means that senior Sudanese officials in charge of regulating agricultural investment system must reconsider the existing policies by eliminating their negative aspects and adding more incentives to attract national and foreign investors. The policies should be in accordance with the interests and ambitions of investors. Sudan should not allow a situation to continue where the virgin and fertile lands become barren while the government has to depend on imports to feed its hungry people.
— Turki Faisal Al-Rasheed is a Saudi writer.
Eradicating poverty: Role of agriculture
Turki Faisal Al-Rasheed Arab News
Poverty is a global phenomenon. In Scandinavian countries two percent of the population live below poverty line. In some African countries this is as high as 35 percent. Throughout the world more than 35,000 people die of poverty a day.
As for Saudi Arabia, King Abdullah’s visit to a number of poor districts of the Riyadh city in Ramadan 1423 represented an official recognition for the first time of the existence of poverty in the Kingdom. That tour had a positive outcome as it led to the establishment of a charitable fund to help the poor. It also gave rise to an anti-poverty strategy. Before that, there was hardly any talk of poverty in this country.
The relevant World Bank studies stress that agriculture is the key to developing rural areas and eradicating poverty. In fact, the development of rural areas is the best means to achieve a fair distribution of income among the people of the Kingdom. It is proved that agriculture has more effect on anti-poverty strategy than any other activity because it provides basic food to the people. Development of rural areas and small villages is vital as it creates more employment opportunities and thereby curbs exodus of people to the big cities and towns in search of jobs.
After practical experience extending to three decades in the field of agriculture, this writer joined a doctorate program to prepare a research on the role of agriculture in fighting poverty, developing rural areas and maintaining security in the Kingdom.
This was due to a firm conviction that agricultural reform and rural development encourage sustainable development. This ensures food security, eliminates acute poverty and hunger, helps spread primary education, boosts equality and social justice.
The government has to assume responsibility for agricultural reform as well as other efforts that assist in eradicating poverty in rural areas and contribute to preservation of lands, water and other natural resources for the sake of securing the needs of ordinary people such as owners of cattle, herdsmen and nomad population. These efforts may also result in preventing or discouraging migration from rural areas to towns and cities that has an adverse impact on security. Some 75 percent of the Kingdom’s population lives in towns and cities. So the influx of people from rural areas puts too much pressure on services in the cities and an increase in the rate of crime.
So we must start with a sound agricultural strategy taking into consideration the relative advantage of achieving sustainable agricultural development depending on renewable water resources. Farmers’ efforts must be directed to remote areas that cry for development.
It may be pertinent to mention here that in some studies conducted on wheat, scientists have discovered that genetically modified (GMO) wheat consumes 30 percent of the water needed by nongenetically modified wheat while producing the same or more quantity.
The government now extends subsidies for soybeans, Guinea corns, maize, corn and barley, but the subsidy must be limited to breeders of cattle, camels, sheep and cows, particularly those who live in rural areas. It is also a must to reach the poor rural areas. The areas which are badly in need of development housing are eight in number, namely Makkah which includes 12 locations belonging to Al-Qunfudah, Al-Laith, Khulais, Al-Jamoum and Al-Kamel provinces, Madinah with five locations in Yanbu and Tabuk which has six locations belonging to Umluj, Al-Wajh, Dhubaa, Al-Bidaa and Haql provinces. There are three locations in each of Al-Baha, Asir and Jizan.
In the Eastern region, there are four locations in Al-Ahsa and Al-Qateef considered as among the most in need of development housing, while in Qassim region, there are six locations. In addition there are shantytowns in the Northern borders, Hail and Al-Jouf.
In this context, the findings of a Saudi are instructive. According to this study, the working children in the Kingdom amounts to 1.54 percent of the total number of children. The Eastern region accounts for highest number of working children (2.3 percent), followed by Makkah, Madinah, Asir and Riyadh. The study found that there are two types of working children. In the first category are children who work in the farms of their families and are unpaid. The other group includes children who work so they can contribute to the their families income.
For the development programs to be successful, we must design programs suited for each region. Regions have separate needs and resources. International organizations such as FAO may help in achieving these objectives.
— Turki Faisal Al-Rasheed is a Saudi Writer.
He can be contacted at: tfrasheed@goldengrass.com
Turki Faisal Al-Rasheed Arab News
Poverty is a global phenomenon. In Scandinavian countries two percent of the population live below poverty line. In some African countries this is as high as 35 percent. Throughout the world more than 35,000 people die of poverty a day.
As for Saudi Arabia, King Abdullah’s visit to a number of poor districts of the Riyadh city in Ramadan 1423 represented an official recognition for the first time of the existence of poverty in the Kingdom. That tour had a positive outcome as it led to the establishment of a charitable fund to help the poor. It also gave rise to an anti-poverty strategy. Before that, there was hardly any talk of poverty in this country.
The relevant World Bank studies stress that agriculture is the key to developing rural areas and eradicating poverty. In fact, the development of rural areas is the best means to achieve a fair distribution of income among the people of the Kingdom. It is proved that agriculture has more effect on anti-poverty strategy than any other activity because it provides basic food to the people. Development of rural areas and small villages is vital as it creates more employment opportunities and thereby curbs exodus of people to the big cities and towns in search of jobs.
After practical experience extending to three decades in the field of agriculture, this writer joined a doctorate program to prepare a research on the role of agriculture in fighting poverty, developing rural areas and maintaining security in the Kingdom.
This was due to a firm conviction that agricultural reform and rural development encourage sustainable development. This ensures food security, eliminates acute poverty and hunger, helps spread primary education, boosts equality and social justice.
The government has to assume responsibility for agricultural reform as well as other efforts that assist in eradicating poverty in rural areas and contribute to preservation of lands, water and other natural resources for the sake of securing the needs of ordinary people such as owners of cattle, herdsmen and nomad population. These efforts may also result in preventing or discouraging migration from rural areas to towns and cities that has an adverse impact on security. Some 75 percent of the Kingdom’s population lives in towns and cities. So the influx of people from rural areas puts too much pressure on services in the cities and an increase in the rate of crime.
So we must start with a sound agricultural strategy taking into consideration the relative advantage of achieving sustainable agricultural development depending on renewable water resources. Farmers’ efforts must be directed to remote areas that cry for development.
It may be pertinent to mention here that in some studies conducted on wheat, scientists have discovered that genetically modified (GMO) wheat consumes 30 percent of the water needed by nongenetically modified wheat while producing the same or more quantity.
The government now extends subsidies for soybeans, Guinea corns, maize, corn and barley, but the subsidy must be limited to breeders of cattle, camels, sheep and cows, particularly those who live in rural areas. It is also a must to reach the poor rural areas. The areas which are badly in need of development housing are eight in number, namely Makkah which includes 12 locations belonging to Al-Qunfudah, Al-Laith, Khulais, Al-Jamoum and Al-Kamel provinces, Madinah with five locations in Yanbu and Tabuk which has six locations belonging to Umluj, Al-Wajh, Dhubaa, Al-Bidaa and Haql provinces. There are three locations in each of Al-Baha, Asir and Jizan.
In the Eastern region, there are four locations in Al-Ahsa and Al-Qateef considered as among the most in need of development housing, while in Qassim region, there are six locations. In addition there are shantytowns in the Northern borders, Hail and Al-Jouf.
In this context, the findings of a Saudi are instructive. According to this study, the working children in the Kingdom amounts to 1.54 percent of the total number of children. The Eastern region accounts for highest number of working children (2.3 percent), followed by Makkah, Madinah, Asir and Riyadh. The study found that there are two types of working children. In the first category are children who work in the farms of their families and are unpaid. The other group includes children who work so they can contribute to the their families income.
For the development programs to be successful, we must design programs suited for each region. Regions have separate needs and resources. International organizations such as FAO may help in achieving these objectives.
— Turki Faisal Al-Rasheed is a Saudi Writer.
He can be contacted at: tfrasheed@goldengrass.com
Monday, February 04, 2008
Bahrain to buy 'farms' in Saudi
THE Municipalities and Agriculture Ministry, in co-operation with the private sector, plans to buy about 300 million sqm of agricultural land in eastern parts of Saudi Arabia.
These will be rented out to Bahraini farmers on easy terms on condition they plant what the ministry wants, a report says.
The ministry will buy produce from them and sell it in the Bahraini market. Sources in the private sector said the deal may cost more than BD300 million and the ministry would provide water, electricity and seeds. They said the plan would help achieve food security for Bahrain in the long run.
The lands are not far from Bahrain and will provide at least 1,000 jobs for Bahrainis, it said.
http://www.gulf-daily-news.com/Story.asp?Article=207810&Sn=BNEW&IssueID=30322
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