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
Saturday, December 04, 2010
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.
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"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
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.
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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
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.
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 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
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§ion=theuae
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§ion=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
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
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
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
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
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
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
Sunday, October 31, 2010
Sunday, 31 October 2010 - 23 Thul-Qedah 1431 H
NATION
Kingdom keen to address food security issue: Irish official
SHAHID ALI KHAN
RIYADH: Saudi Arabia is keen to address the food security issue by investing in agricultural land in other countries, according to Danny Cunningham of Enterprise Ireland, which has a branch office in Riyadh.
Cunningham said a one-day seminar on Food Security will be organized at the Riyadh Chamber of Commerce and Industry (RCCI) Monday. Some leading Saudi businessmen, CEOs and presidents of agricultural companies and members from the Irish trade delegation will attend.
He said Batt O’Keeffe, Irish Minister for Enterprise, Trade and Innovation, will open the seminar at the RCCI.
“O’Keeffe is leading a 71-member Irish trade delegation to Saudi Arabia from Saturday to Wednesday. About 50 Irish companies that include companies from the Irish agriculture sector will tour Riyadh, Jeddah and Dammam,” Cunningham said.
Fifty innovative Irish firms joining Minister O’Keeffe on the trade mission are from sectors including construction, engineering, information technology, education, finance and consulting.
A unique aspect of the trade mission to Saudi Arabia will be the participation of representatives from each of AIB, Bank of Ireland and Ulster Bank.
Saudi Arabia is a key high-growth market for Irish firms, Cunningham said.
“Despite the tough global trade climate, Irish exports to Saudi Arabia grew to over €400 million last year,” he added.
Saudi Arabia is Ireland’s largest export market in the Middle East, he said.
More than 70 Irish small businesses are doing business in Saudi Arabia and 20 have a full-time market presence in the country.
Cunningham said Saudi Arabia has been investing in agricultural land procurement in Africa, Brazil and Argentina, as part of a long-term strategy for food security.
Keynote speakers from Saudi Arabia and Ireland will explore possibilities on how to clinch deals with countries that can offer food security for the Kingdom, he said.
“Ireland has expertise in the food and agriculture sector and is ready to offer Saudi Arabia technical know-how and skills required for engaging in agricultural farming in third countries such as Sudan, South Africa, Brazil and Argentina,” he said.
Minister O’Keffe will hold meetings with Abdullah Ahmed Zeinal Ali Reza, Minister of Commerce and Industry, Dr. Abdullah Al-Rabeah, Minister of Health, and Dr. Khalid Bin Mohammad Al-Anqari, Minister of Higher Education.
?Ali Reza has earlier said that Saudi Arabia will be investing in agriculture not only in South Africa but in four other African countries in order to teach effective crop growing techniques as well as to transfer valuable skills.
?”Food security is vital,” Ali Reza said. Saudi farmers have managed to establish special techniques for growing more maize per hectare, and the Kingdom has a lot to offer the world in the agricultural sector, he said.
?“We look at Africa not only as a place where products can be harvested, but we look at making Africa a partner in the fight for food security,” Ali Reza was quoted in a media report as saying.
—Saudi Gazette __
News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010103186494
NATION
Kingdom keen to address food security issue: Irish official
SHAHID ALI KHAN
RIYADH: Saudi Arabia is keen to address the food security issue by investing in agricultural land in other countries, according to Danny Cunningham of Enterprise Ireland, which has a branch office in Riyadh.
Cunningham said a one-day seminar on Food Security will be organized at the Riyadh Chamber of Commerce and Industry (RCCI) Monday. Some leading Saudi businessmen, CEOs and presidents of agricultural companies and members from the Irish trade delegation will attend.
He said Batt O’Keeffe, Irish Minister for Enterprise, Trade and Innovation, will open the seminar at the RCCI.
“O’Keeffe is leading a 71-member Irish trade delegation to Saudi Arabia from Saturday to Wednesday. About 50 Irish companies that include companies from the Irish agriculture sector will tour Riyadh, Jeddah and Dammam,” Cunningham said.
Fifty innovative Irish firms joining Minister O’Keeffe on the trade mission are from sectors including construction, engineering, information technology, education, finance and consulting.
A unique aspect of the trade mission to Saudi Arabia will be the participation of representatives from each of AIB, Bank of Ireland and Ulster Bank.
Saudi Arabia is a key high-growth market for Irish firms, Cunningham said.
“Despite the tough global trade climate, Irish exports to Saudi Arabia grew to over €400 million last year,” he added.
Saudi Arabia is Ireland’s largest export market in the Middle East, he said.
More than 70 Irish small businesses are doing business in Saudi Arabia and 20 have a full-time market presence in the country.
Cunningham said Saudi Arabia has been investing in agricultural land procurement in Africa, Brazil and Argentina, as part of a long-term strategy for food security.
Keynote speakers from Saudi Arabia and Ireland will explore possibilities on how to clinch deals with countries that can offer food security for the Kingdom, he said.
“Ireland has expertise in the food and agriculture sector and is ready to offer Saudi Arabia technical know-how and skills required for engaging in agricultural farming in third countries such as Sudan, South Africa, Brazil and Argentina,” he said.
Minister O’Keffe will hold meetings with Abdullah Ahmed Zeinal Ali Reza, Minister of Commerce and Industry, Dr. Abdullah Al-Rabeah, Minister of Health, and Dr. Khalid Bin Mohammad Al-Anqari, Minister of Higher Education.
?Ali Reza has earlier said that Saudi Arabia will be investing in agriculture not only in South Africa but in four other African countries in order to teach effective crop growing techniques as well as to transfer valuable skills.
?”Food security is vital,” Ali Reza said. Saudi farmers have managed to establish special techniques for growing more maize per hectare, and the Kingdom has a lot to offer the world in the agricultural sector, he said.
?“We look at Africa not only as a place where products can be harvested, but we look at making Africa a partner in the fight for food security,” Ali Reza was quoted in a media report as saying.
—Saudi Gazette __
News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010103186494
Sunday, October 24, 2010
High barley prices hit livestock market hard, meat may cost more
By ARAB NEWS
Published: Oct 14, 2010 23:33 Updated: Oct 22, 2010 00:12
AL-HASA: A surge in the price of barley, which has more than doubled recently, has hit the Kingdom’s livestock market hard, triggering fears of an increase in the price of meat during Eid Al-Adha and Haj.
The surge has also resulted in an exchange of accusations between importers and traders of barley on the one hand and livestock farmers on the other, especially in Al-Hasa in the Eastern Province where the price of one bag of barley has soared to SR50, according to a recent report in Al-Eqtisadiah newspaper.
Saudi Arabia is the world’s largest importer of barley, which is the preferred livestock feed in the Kingdom. The increase in prices, however, has created much commotion with traders and farmers blaming importers, foreign companies and retailers.
Business is so bad that some farmers are even changing professions and selling off their animals. “This is the only option we have to avoid incurring huge losses,” said one farmer, adding that the authorities should be monitoring prices.
“This gives the opportunity to some unscrupulous foreign agents to employ unethical practices of hoarding produce to create artificial shortages to raise prices,” he said, while urging the Ministry of Commerce and Industry to take strict measures to stop this.
“The ministry should publicize the price of barley and other fodders on its website,” said another farmer.
Prices have shot up 30-50 percent, reaching more than SR50 per bag over the last few days in Al-Hasa barley market. The price of one bag of Australian barley jumped to SR50 from SR34 while European barely rose to SR47 from SR30 over the last few months.
Many traders have accused importers and wholesalers for the price rise while importers and distributors blame each other. Some importers attribute soaring prices to the surge in prices in the international market. One distributor said he buys one bag of barley for SR46 and sells it on for SR50, in line with Ministry of Commerce and Industry instructions. The ministry capped the profit margins of barley importers to five percent at the end of August.
A number of Saudi barley traders pointed out that some foreigners, who work as agents in the livestock market, are also behind the price rise. “They impose a hike of SR10 per bag when the products reach Saudi ports. They do this in conjunction with the importers,” said one trader.
Salem Al-Rashidi, a livestock trader, alleged that foreign workers are controlling the barley market in the region. “They are hoarding huge stocks of barley when the product reaches the market, and making it look as if there is a shortage to raise prices,” he said, adding that the absence of proper monitoring by the authorities makes the problem worse.
He further called on the Ministry of Commerce and Industry to resolve the matter.
On their part, a number of importers attributed the soaring prices to the situation in Australia and some major barley-producing European countries such as Russia and Ukraine, which supply the Kingdom. They added that a devastating drought in Russia has prompted Moscow to put a ban on grain exports, especially barley.
A ministry official noted that traders were hoarding stocks to raise prices. Hamad Al-Holaibi, director of the ministry’s branch in Al-Hasa, blamed importers and retailers for spreading rumors about an increase in global prices to inflate prices in the local market.
News Link: http://arabnews.com/saudiarabia/article166781.ece
By ARAB NEWS
Published: Oct 14, 2010 23:33 Updated: Oct 22, 2010 00:12
AL-HASA: A surge in the price of barley, which has more than doubled recently, has hit the Kingdom’s livestock market hard, triggering fears of an increase in the price of meat during Eid Al-Adha and Haj.
The surge has also resulted in an exchange of accusations between importers and traders of barley on the one hand and livestock farmers on the other, especially in Al-Hasa in the Eastern Province where the price of one bag of barley has soared to SR50, according to a recent report in Al-Eqtisadiah newspaper.
Saudi Arabia is the world’s largest importer of barley, which is the preferred livestock feed in the Kingdom. The increase in prices, however, has created much commotion with traders and farmers blaming importers, foreign companies and retailers.
Business is so bad that some farmers are even changing professions and selling off their animals. “This is the only option we have to avoid incurring huge losses,” said one farmer, adding that the authorities should be monitoring prices.
“This gives the opportunity to some unscrupulous foreign agents to employ unethical practices of hoarding produce to create artificial shortages to raise prices,” he said, while urging the Ministry of Commerce and Industry to take strict measures to stop this.
“The ministry should publicize the price of barley and other fodders on its website,” said another farmer.
Prices have shot up 30-50 percent, reaching more than SR50 per bag over the last few days in Al-Hasa barley market. The price of one bag of Australian barley jumped to SR50 from SR34 while European barely rose to SR47 from SR30 over the last few months.
Many traders have accused importers and wholesalers for the price rise while importers and distributors blame each other. Some importers attribute soaring prices to the surge in prices in the international market. One distributor said he buys one bag of barley for SR46 and sells it on for SR50, in line with Ministry of Commerce and Industry instructions. The ministry capped the profit margins of barley importers to five percent at the end of August.
A number of Saudi barley traders pointed out that some foreigners, who work as agents in the livestock market, are also behind the price rise. “They impose a hike of SR10 per bag when the products reach Saudi ports. They do this in conjunction with the importers,” said one trader.
Salem Al-Rashidi, a livestock trader, alleged that foreign workers are controlling the barley market in the region. “They are hoarding huge stocks of barley when the product reaches the market, and making it look as if there is a shortage to raise prices,” he said, adding that the absence of proper monitoring by the authorities makes the problem worse.
He further called on the Ministry of Commerce and Industry to resolve the matter.
On their part, a number of importers attributed the soaring prices to the situation in Australia and some major barley-producing European countries such as Russia and Ukraine, which supply the Kingdom. They added that a devastating drought in Russia has prompted Moscow to put a ban on grain exports, especially barley.
A ministry official noted that traders were hoarding stocks to raise prices. Hamad Al-Holaibi, director of the ministry’s branch in Al-Hasa, blamed importers and retailers for spreading rumors about an increase in global prices to inflate prices in the local market.
News Link: http://arabnews.com/saudiarabia/article166781.ece
Tuesday, October 19, 2010
Saudis, Italians and Irish join forces to invest in food security
Published: Oct 19, 2010 00:52 Updated: Oct 19, 2010 00:52
RIYADH: An Italian delegation of 250 businessmen representing 200 companies will visit Riyadh on Nov. 1 as part of a three-day visit to meet Saudi businessmen and investors.
An Irish business delegation, led by Minister of Trade and Commerce Batt O'Keeffe and which includes directors and chairmen from various investing companies, will also visit Riyadh during the same period.
Businessman Yousuf Al-MaymanI, who organized the visits along with the Council of Saudi Chambers of Commerce and Industry, said there will be workshops and forums in Riyadh and the Eastern Provinces.
Osama Al-Kurdi, a member of the Shoura Council and CEO of Farrelley and Mitchell Middle East, said the Irish minister of trade and commerce will launch a food forum on Nov. 1 and that Saudi investors will be given an opportunity to learn about food security.
News Link: http://arabnews.com/saudiarabia/article164042.ece
Saturday, October 16, 2010
Saudi Arabia Nears Argentina
52 || Clarin || RURAL REVISTA || SABADO 9 de octubre de 2010
(Spanish to English translation )
Al Rashid. rales highlight the potential
relationship between ambosbosbos countries.
Demonstrated at a seminar held in Buenos Aires.
Faculty of Economics, University of Palermo organized the Seminar "Agribusiness: business opportunities with the Middle East" by the farmer of Saudi Arabia Turki Faisal Al Rasheed and Argentine professionals in the industry. Among the public, by the Ambassador of Saudi Arabia Esam Al Thagafi abid.
Turki Faisal Al Rasheed, Chairman of the Saudi agricultural company, Golden Grass Inc., began his speech highlighting the opportunities for cooperation between his country and Argentina. The employer described the difficulties of Saudi Arabia to develop agriculture: "Water scarcity is one of the major limitations of Saudi Arabia to produce food. For this reason, we seek to reduce agriculture in our country and open up opportunities for foreign investment, either by joint ventures with other countries, buying farmland or through strategic alliances. "
According to Al Rasheed, Saudi Arabia has strategic needs of raw materials consisting of 2.7 million tonnes of wheat per year, 1 million tons of rice, 6.3 million tonnes of barley and 14 million tonnes of animal feed each year. Against this background, Al
Rasheed said: "We may partner with Argentina for agricultural investment, the idea would be to shorten the bridge between the two." Al Rasheed said: "We are here to explore the possibility of investing. At this point, we are considering to twenty-two countries. " And he added: "I came here by myself, but in a few weeks, business delegations will come to Argentina to explore the real possibilities."
Daniel O. Melhem, Chairman of the Leaders of Latin America and the Gulf (GLLC) and co-founder and Managing Director of Knightsbridge Partners, agreed with Al Rasheed in the importance of water. He said that today, while China and India have only 20% of water on the planet, the Americas have 40%. And said: "For the first time, Gulf countries are thinking in Latin America, are dismissing other economic powers have become strategic investors," he said.
Gustavo Oliverio, director of the Foundation Produce and Conserve, referred to a study of the organization under which it was projected that by 2020 is expected to increase 72% of wheat production in Argentina, 98% growth for the 54% corn and soybean production in comparison with the average for the period 2007 to 2009. For his part, Ignacio Lartirigoyen, manager of the food industry, stressed the need to "increase production efficiency and diversifying agricultural production in the country."
Souce: Emailed PDF News - GGI Copy
52 || Clarin || RURAL REVISTA || SABADO 9 de octubre de 2010
(Spanish to English translation )
Al Rashid. rales highlight the potential
relationship between ambosbosbos countries.
Demonstrated at a seminar held in Buenos Aires.
Faculty of Economics, University of Palermo organized the Seminar "Agribusiness: business opportunities with the Middle East" by the farmer of Saudi Arabia Turki Faisal Al Rasheed and Argentine professionals in the industry. Among the public, by the Ambassador of Saudi Arabia Esam Al Thagafi abid.
Turki Faisal Al Rasheed, Chairman of the Saudi agricultural company, Golden Grass Inc., began his speech highlighting the opportunities for cooperation between his country and Argentina. The employer described the difficulties of Saudi Arabia to develop agriculture: "Water scarcity is one of the major limitations of Saudi Arabia to produce food. For this reason, we seek to reduce agriculture in our country and open up opportunities for foreign investment, either by joint ventures with other countries, buying farmland or through strategic alliances. "
According to Al Rasheed, Saudi Arabia has strategic needs of raw materials consisting of 2.7 million tonnes of wheat per year, 1 million tons of rice, 6.3 million tonnes of barley and 14 million tonnes of animal feed each year. Against this background, Al
Rasheed said: "We may partner with Argentina for agricultural investment, the idea would be to shorten the bridge between the two." Al Rasheed said: "We are here to explore the possibility of investing. At this point, we are considering to twenty-two countries. " And he added: "I came here by myself, but in a few weeks, business delegations will come to Argentina to explore the real possibilities."
Daniel O. Melhem, Chairman of the Leaders of Latin America and the Gulf (GLLC) and co-founder and Managing Director of Knightsbridge Partners, agreed with Al Rasheed in the importance of water. He said that today, while China and India have only 20% of water on the planet, the Americas have 40%. And said: "For the first time, Gulf countries are thinking in Latin America, are dismissing other economic powers have become strategic investors," he said.
Gustavo Oliverio, director of the Foundation Produce and Conserve, referred to a study of the organization under which it was projected that by 2020 is expected to increase 72% of wheat production in Argentina, 98% growth for the 54% corn and soybean production in comparison with the average for the period 2007 to 2009. For his part, Ignacio Lartirigoyen, manager of the food industry, stressed the need to "increase production efficiency and diversifying agricultural production in the country."
Souce: Emailed PDF News - GGI Copy
Sunday, October 10, 2010
US agricultural delegation explores new avenues of trade in Saudi Arabia
Arab News
07 October 2010
RIYADH: A visiting trade team from the US had indicated immense interest on Wednesday to import dates and its byproducts on a large scale from the Kingdom.
"We are interested in importing dates and its byproducts from a cooperative body comprising date producers," David Callahan, vice president for business development at the US-Saudi Arabian Business Council, told Arab News Wednesday.
Callahan, who was leading a team of 11 businessmen from the US agricultural sector, was at a luncheon hosted by the council's Riyadh branch at the Equestrian Club.
US Ambassador James B. Smith, Riyadh Chamber of Commerce and Industry chairman Abdul Rahman Al-Jeraisy and leading businessmen were present at the function.
"This is going to be a new venture where we would like to market Saudi dates in the United States," Callahan said, pointing out that he was insisting on an umbrella organization since his country could get the best variety of dates that could be easily marketable. Describing it as the first ever agricultural trade delegation to the Kingdom, Callahan said that the aim was to fulfill Custodian of the Two Holy Mosques King Abdullah's strategic agricultural initiatives focused on food safety.
"We are also looking for a long term contract with the Kingdom for the export of wheat from the US," he said, pointing out that while Saudi Arabia is reducing domestic wheat cultivation to save on water, demand is still growing.
Callahan also said that there are plenty of opportunities in the Kingdom with regard to exporting foodstuffs and agricultural products since Saudi Arabia's population has been increasing.
Al-Jeraisy, who is also director of the Saudi-US Business Council, said that the two countries have enjoyed excellent trade relations for more than 80 years.
"Such an exchange of trade delegations between the two countries will help concerned parties identify new areas of cooperation that would be of mutual interest," Al-Jeraisy said
"The interest by the United States in importing dates is being shown at a time when a group of Saudi companies in the Kingdom is planning to set up a multi-billion riyal factory to produce dates and manufacture its byproducts."
He added that juice, organic drinks, essence and syrups could be produced from dates.
He said that the final stages of the date plant were being worked out and it will soon be installed by a group of Riyadh-based companies.
Last year, US exports to the Kingdom were valued at $10.8 billion, while its imports from Saudi Arabia, mainly oil were worth around $30 billion.
The Kingdom's estimated imports of foodstuffs from the US were worth around $700 million last year.
According to official figures released by the US embassy in Riyadh, the export of foodstuffs from the US had increased by 29 percent during the first half of 2010, compared to the same period last year.
By MD RASOOLDEEN
© Arab News 2010
News Link:
Arab News
07 October 2010
RIYADH: A visiting trade team from the US had indicated immense interest on Wednesday to import dates and its byproducts on a large scale from the Kingdom.
"We are interested in importing dates and its byproducts from a cooperative body comprising date producers," David Callahan, vice president for business development at the US-Saudi Arabian Business Council, told Arab News Wednesday.
Callahan, who was leading a team of 11 businessmen from the US agricultural sector, was at a luncheon hosted by the council's Riyadh branch at the Equestrian Club.
US Ambassador James B. Smith, Riyadh Chamber of Commerce and Industry chairman Abdul Rahman Al-Jeraisy and leading businessmen were present at the function.
"This is going to be a new venture where we would like to market Saudi dates in the United States," Callahan said, pointing out that he was insisting on an umbrella organization since his country could get the best variety of dates that could be easily marketable. Describing it as the first ever agricultural trade delegation to the Kingdom, Callahan said that the aim was to fulfill Custodian of the Two Holy Mosques King Abdullah's strategic agricultural initiatives focused on food safety.
"We are also looking for a long term contract with the Kingdom for the export of wheat from the US," he said, pointing out that while Saudi Arabia is reducing domestic wheat cultivation to save on water, demand is still growing.
Callahan also said that there are plenty of opportunities in the Kingdom with regard to exporting foodstuffs and agricultural products since Saudi Arabia's population has been increasing.
Al-Jeraisy, who is also director of the Saudi-US Business Council, said that the two countries have enjoyed excellent trade relations for more than 80 years.
"Such an exchange of trade delegations between the two countries will help concerned parties identify new areas of cooperation that would be of mutual interest," Al-Jeraisy said
"The interest by the United States in importing dates is being shown at a time when a group of Saudi companies in the Kingdom is planning to set up a multi-billion riyal factory to produce dates and manufacture its byproducts."
He added that juice, organic drinks, essence and syrups could be produced from dates.
He said that the final stages of the date plant were being worked out and it will soon be installed by a group of Riyadh-based companies.
Last year, US exports to the Kingdom were valued at $10.8 billion, while its imports from Saudi Arabia, mainly oil were worth around $30 billion.
The Kingdom's estimated imports of foodstuffs from the US were worth around $700 million last year.
According to official figures released by the US embassy in Riyadh, the export of foodstuffs from the US had increased by 29 percent during the first half of 2010, compared to the same period last year.
By MD RASOOLDEEN
© Arab News 2010
News Link:
Expatriates control livestock market in Eastern Province
Arab News
09 October 2010
DAMMAM: Saudi cattle traders have complained about the monopolization of the cattle market by expatriates in Dammam and Alkhobar and called on authorities to put an end to this domination.
They told Arab News that the market is almost void of Saudi youths and that foreign workers are tightening their grip.
"The Saudi youths have opted to stay out of the cattle market either because of the domination of foreigners or because it's hard to make a good profit," said one cattle trader, who did not want his name to be published.
They said expatriates have not only controlled the trade, but they also fix the prices throughout the year, especially during peak seasons.
"The majority of foreigners in the livestock market are not qualified animal traders and many of them are either without iqamas (residence permits) or not working for their original sponsors," one dealer added.
Mubarak Abdullah Al-Arji, a Saudi owner of a trading establishment specializing in livestock, said the domination of foreigners in the livestock market has been going on for a very long time and called for an immediate stop to it.
"Saudis represent about only 10 percent of the workers in the 400 stalls at the livestock market," he said.
Al-Arji said when he was trying to set up his establishment he faced many difficulties, including securing a visible space in the market. "The foreigners are controlling all the best places and are actually deciding prices," he added.
He asked passport police and the municipality to conduct continuous raids of the market to root out foreigners illegally staying in the country as well as those not working for their original sponsors.
"The foreigners are even securing contracts with a number of government departments and retailers to supply them with livestock or meat," he said.
Al-Arji said the importers' prices are far less than the tariffs set by foreigners working in the livestock market.
"The meat sector is vital and therefore authorities need to intervene to regulate it and end foreign control," he said. He added that if properly organized, this sector would provide enough working opportunities for Saudi youths.
Mukhlad Al-Mitairi, owner of a cattle stall at the livestock market, claimed foreigners are behind the hikes in animal prices during peak seasons.
He also criticized Saudis who prefer to deal with foreigners when buying livestock, as they often wrongly believe that prices asked by Saudi traders are much higher.
He called for appointing a sheikh (chief) for the market -- a practice adopted by other marketplaces, and said such a step would benefit consumers.
He expressed surprise over the absence of Saudi youths in the business and claimed they could make a good income.
Al-Mitairi said many of the expatriates working in the livestock market have made fortunes and are now running their own business. "Shortly after entering the market, many foreigners will buy a truck and start trading animals in various parts of the region," he said. He appealed to the authorities to listen to the complaints of Saudi traders.
By FAIZ AL-MAZROUIE
© Arab News 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20101007031327/US%20agricultural%20delegation%20explores%20new%20avenues%20of%20trade%20in%20Saudi%20Arabia
Arab News
09 October 2010
DAMMAM: Saudi cattle traders have complained about the monopolization of the cattle market by expatriates in Dammam and Alkhobar and called on authorities to put an end to this domination.
They told Arab News that the market is almost void of Saudi youths and that foreign workers are tightening their grip.
"The Saudi youths have opted to stay out of the cattle market either because of the domination of foreigners or because it's hard to make a good profit," said one cattle trader, who did not want his name to be published.
They said expatriates have not only controlled the trade, but they also fix the prices throughout the year, especially during peak seasons.
"The majority of foreigners in the livestock market are not qualified animal traders and many of them are either without iqamas (residence permits) or not working for their original sponsors," one dealer added.
Mubarak Abdullah Al-Arji, a Saudi owner of a trading establishment specializing in livestock, said the domination of foreigners in the livestock market has been going on for a very long time and called for an immediate stop to it.
"Saudis represent about only 10 percent of the workers in the 400 stalls at the livestock market," he said.
Al-Arji said when he was trying to set up his establishment he faced many difficulties, including securing a visible space in the market. "The foreigners are controlling all the best places and are actually deciding prices," he added.
He asked passport police and the municipality to conduct continuous raids of the market to root out foreigners illegally staying in the country as well as those not working for their original sponsors.
"The foreigners are even securing contracts with a number of government departments and retailers to supply them with livestock or meat," he said.
Al-Arji said the importers' prices are far less than the tariffs set by foreigners working in the livestock market.
"The meat sector is vital and therefore authorities need to intervene to regulate it and end foreign control," he said. He added that if properly organized, this sector would provide enough working opportunities for Saudi youths.
Mukhlad Al-Mitairi, owner of a cattle stall at the livestock market, claimed foreigners are behind the hikes in animal prices during peak seasons.
He also criticized Saudis who prefer to deal with foreigners when buying livestock, as they often wrongly believe that prices asked by Saudi traders are much higher.
He called for appointing a sheikh (chief) for the market -- a practice adopted by other marketplaces, and said such a step would benefit consumers.
He expressed surprise over the absence of Saudi youths in the business and claimed they could make a good income.
Al-Mitairi said many of the expatriates working in the livestock market have made fortunes and are now running their own business. "Shortly after entering the market, many foreigners will buy a truck and start trading animals in various parts of the region," he said. He appealed to the authorities to listen to the complaints of Saudi traders.
By FAIZ AL-MAZROUIE
© Arab News 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20101007031327/US%20agricultural%20delegation%20explores%20new%20avenues%20of%20trade%20in%20Saudi%20Arabia
Tuesday, October 05, 2010
Tuesday, 05 October 2010 - 26 Shawwal 1431 H
NATION
Pakistan continues to export rice to Kingdom
Shahid Ali Khan
Saudi Gazette
RIYADH: Despite the devastating floods in the country, Pakistan can continue to export rice to Saudi Arabia, said Pakistani rice exporters here Monday.
They are part of a 30-member trade delegation, comprising mostly rice exporters, who are in the country to assure the Saudi Arabian authorities that there will not be a shortage of rice this year. They were attending the 29th International Saudi Agriculture 2010 exhibition in Riyadh Monday, the biggest business-to-business agriculture and agro-food event in the Mideast.
“Last year we had a bumper crop of rice, particularly basmati rice, and we have enough stock to allow us to continue the export of rice to Saudi Arabia without any interruption,” said Amir Qayyum, one of the rice exporters participating in the exhibition.
The Pakistani rice exporters say they are in the Kingdom to ensure competitors do not exploit the situation that would lead to overpricing in the local market.
Engineer Saad Bin Ibrahim Al-Fayyad, Deputy Minister of Agriculture for Fisheries and Marine Aquaculture, opened the event Monday.
The event is open to businesspeople and the public between 4:30 P.M. and 10 P.M. until Oct. 7. Also running concurrently with the Saudi Agriculture 2010 exhibition, are two other events – Saudi Agro-Food 2010, the 17th International Tradeshow for Food Products, and Saudi Food-Pack 2010, the International Exhibition for Food Processing and Packaging.
Mohamad Al-Hussaini, Deputy General Manager, Riyadh Exhibitions Company, the organizer of the event, said that Saudi Arabia is the largest economy within the Gulf Cooperation Council, the world’s top food-importing region as verified by the World Trade Organization.
“With a population of roughly 28 million people, the Kingdom’s demand for food and other agriculture products is huge. The Saudi government intends to meet this demand by boosting spending on agriculture and related sectors. Saudi Agriculture 2010 offers insights on how best to maximize domestic prospects while providing a gateway to other lucrative Gulf markets,” said Al-Hussaini.
About 300 exhibitors from Saudi Arabia and 27 countries are participating in the exhibition.
– Saudi Gazette __
News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010100584729
NATION
Pakistan continues to export rice to Kingdom
Shahid Ali Khan
Saudi Gazette
RIYADH: Despite the devastating floods in the country, Pakistan can continue to export rice to Saudi Arabia, said Pakistani rice exporters here Monday.
They are part of a 30-member trade delegation, comprising mostly rice exporters, who are in the country to assure the Saudi Arabian authorities that there will not be a shortage of rice this year. They were attending the 29th International Saudi Agriculture 2010 exhibition in Riyadh Monday, the biggest business-to-business agriculture and agro-food event in the Mideast.
“Last year we had a bumper crop of rice, particularly basmati rice, and we have enough stock to allow us to continue the export of rice to Saudi Arabia without any interruption,” said Amir Qayyum, one of the rice exporters participating in the exhibition.
The Pakistani rice exporters say they are in the Kingdom to ensure competitors do not exploit the situation that would lead to overpricing in the local market.
Engineer Saad Bin Ibrahim Al-Fayyad, Deputy Minister of Agriculture for Fisheries and Marine Aquaculture, opened the event Monday.
The event is open to businesspeople and the public between 4:30 P.M. and 10 P.M. until Oct. 7. Also running concurrently with the Saudi Agriculture 2010 exhibition, are two other events – Saudi Agro-Food 2010, the 17th International Tradeshow for Food Products, and Saudi Food-Pack 2010, the International Exhibition for Food Processing and Packaging.
Mohamad Al-Hussaini, Deputy General Manager, Riyadh Exhibitions Company, the organizer of the event, said that Saudi Arabia is the largest economy within the Gulf Cooperation Council, the world’s top food-importing region as verified by the World Trade Organization.
“With a population of roughly 28 million people, the Kingdom’s demand for food and other agriculture products is huge. The Saudi government intends to meet this demand by boosting spending on agriculture and related sectors. Saudi Agriculture 2010 offers insights on how best to maximize domestic prospects while providing a gateway to other lucrative Gulf markets,” said Al-Hussaini.
About 300 exhibitors from Saudi Arabia and 27 countries are participating in the exhibition.
– Saudi Gazette __
News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010100584729
Sunday, September 26, 2010
Jordan: Cereal production meets a fraction of local needs - DoS
Jordan Times
24 September 2010
AMMAN - Jordan needs to increase twelvefold the area of land it plants with wheat and barley in order to achieve self-sufficiency in these staple crops, a report released Thursday by the Department of Statistics said (DoS).
The report, which covered the year 2009, showed that the Kingdom produced 12,500 tonnes of wheat last year, only 2 per cent of the country's average annual need of 606,100 tonnes. Meanwhile, Jordan's livestock in 2009 consumed 519,800 tonnes of barley fodder last year, whereas production of this crop was only 17,100 tonnes.
Minister of Agriculture Mazen Khasawneh told The Jordan Times yesterday that due to limited resources, only between 400,000-500,000 dunums are planted with cereals each year depending on rainfall, adding that Jordan has recently suffered a series of dry years that have affected the agricultural sector as a whole.
Khasawneh said the ministry's policy is based on supporting farmers, adding that it recently changed its support mechanism to farmers growing cereals from encouraging the planting of more land to promoting higher yields.
"The new support is based on buying wheat and barley products from farmers at the international price plus 50 per cent of the price, plus the cost of transportation," the minister said, adding that this year the ministry bought each tonne of wheat at JD350, while each tonne of barley was bought at JD250, or JD350 for the kind used as seed.
By Hani Hazaimeh
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100925075334/Jordan%3A%20Cereal%20production%20meets%20a%20fraction%20of%20local%20needs%20%2D%20DoS
Jordan Times
24 September 2010
AMMAN - Jordan needs to increase twelvefold the area of land it plants with wheat and barley in order to achieve self-sufficiency in these staple crops, a report released Thursday by the Department of Statistics said (DoS).
The report, which covered the year 2009, showed that the Kingdom produced 12,500 tonnes of wheat last year, only 2 per cent of the country's average annual need of 606,100 tonnes. Meanwhile, Jordan's livestock in 2009 consumed 519,800 tonnes of barley fodder last year, whereas production of this crop was only 17,100 tonnes.
Minister of Agriculture Mazen Khasawneh told The Jordan Times yesterday that due to limited resources, only between 400,000-500,000 dunums are planted with cereals each year depending on rainfall, adding that Jordan has recently suffered a series of dry years that have affected the agricultural sector as a whole.
Khasawneh said the ministry's policy is based on supporting farmers, adding that it recently changed its support mechanism to farmers growing cereals from encouraging the planting of more land to promoting higher yields.
"The new support is based on buying wheat and barley products from farmers at the international price plus 50 per cent of the price, plus the cost of transportation," the minister said, adding that this year the ministry bought each tonne of wheat at JD350, while each tonne of barley was bought at JD250, or JD350 for the kind used as seed.
By Hani Hazaimeh
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100925075334/Jordan%3A%20Cereal%20production%20meets%20a%20fraction%20of%20local%20needs%20%2D%20DoS
Iran Among Top Agro Producers
Iran Daily
22 September 2010
Food and Agriculture Organization (FAO) in its latest report declared that Iran, with production of 22 staple crops, is among top seven agricultural producers worldwide.
Iran ranks first in pistachio production, second in date output and 18th in wheat cultivation, Fars News Agency wrote.
Iran is considered as a top pistachio producer across the world.
The country has a good position in production of apricot, almond, cherries, cucumber, watermelon, quince, walnut, gum, silkworm cocoon, fig, peach, lemon, onion, tomato, hazelnut, orange, plum, kiwi, mint, honey, tea, egg plant, and potato, wheat, barley and soy beans.
It has also a high production of rice, sunflower seeds, meat and milk.
But, Saffron, as the Iranian major crop, has not been included in FAO's list.
However, statistics released by Trade Promotion Organization of agricultural exports show that saffron exports have grown by 40 tons in 2009.
This indicates that this precious spice has seen 910 and 1,734 percent rise in exports' weight and value respectively during the mentioned period.
Exports Rise
Director General of Export and Service Promotion Bureau of the Trade Development Organization Mehrdad Jalalipour said fruits exports have grown by 53 percent this year.
He put fruit exports at $130 million during March 21-June 22. While the figure stood at $85 million during the same period of the year before.
Pressurized Irrigation
Agricultural Jihad Minister Sadeq Khalilian said currently close to 90 percent of domestic water resources are used in farming sector, IRIB reported.
He recalled that the fourth five-year economic development plan (2005-2010) had targeted that close to 78,000 hectares of farming lands go under pressurized irrigation.
This is while the current government has implemented the pressurized irrigation across 113,000 hectares of lands, which is beyond the stipulated figure, he pointed out.
On relocation of Agricultural Jihad Ministry to one of Northern provinces, the minister said the administrative office is to be relocated.
Commenting on guaranteed beet purchase, he said the guaranteed purchase is a supportive measure. But, the government does not have to purchase the entire product, he added.
He elaborated that sugarcane output dropped sharply in the past two years.
The figure declined to 200,000 tons from six million tons, he said.
However, this year sugarcane production has again grown to four million tons, he added.
Asked about problems facing silkworm cocoon producers, he put the cocoon output at 1000 tons.
Experts say that fruit production can easily meet national demand. However, irregularities in distribution and sales have caused supply disruptions.
Although Iran, based on figures released by FAO, is among the world's 10 top countries in terms of production of fruits and vegetables, exorbitant fruit prices continue to exert further financial burden on low-income sections.
Compiled by Sadeq Dehqan
© Iran Daily 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100923045635/Iran%20Among%20Top%20Agro%20Producers
Iran Daily
22 September 2010
Food and Agriculture Organization (FAO) in its latest report declared that Iran, with production of 22 staple crops, is among top seven agricultural producers worldwide.
Iran ranks first in pistachio production, second in date output and 18th in wheat cultivation, Fars News Agency wrote.
Iran is considered as a top pistachio producer across the world.
The country has a good position in production of apricot, almond, cherries, cucumber, watermelon, quince, walnut, gum, silkworm cocoon, fig, peach, lemon, onion, tomato, hazelnut, orange, plum, kiwi, mint, honey, tea, egg plant, and potato, wheat, barley and soy beans.
It has also a high production of rice, sunflower seeds, meat and milk.
But, Saffron, as the Iranian major crop, has not been included in FAO's list.
However, statistics released by Trade Promotion Organization of agricultural exports show that saffron exports have grown by 40 tons in 2009.
This indicates that this precious spice has seen 910 and 1,734 percent rise in exports' weight and value respectively during the mentioned period.
Exports Rise
Director General of Export and Service Promotion Bureau of the Trade Development Organization Mehrdad Jalalipour said fruits exports have grown by 53 percent this year.
He put fruit exports at $130 million during March 21-June 22. While the figure stood at $85 million during the same period of the year before.
Pressurized Irrigation
Agricultural Jihad Minister Sadeq Khalilian said currently close to 90 percent of domestic water resources are used in farming sector, IRIB reported.
He recalled that the fourth five-year economic development plan (2005-2010) had targeted that close to 78,000 hectares of farming lands go under pressurized irrigation.
This is while the current government has implemented the pressurized irrigation across 113,000 hectares of lands, which is beyond the stipulated figure, he pointed out.
On relocation of Agricultural Jihad Ministry to one of Northern provinces, the minister said the administrative office is to be relocated.
Commenting on guaranteed beet purchase, he said the guaranteed purchase is a supportive measure. But, the government does not have to purchase the entire product, he added.
He elaborated that sugarcane output dropped sharply in the past two years.
The figure declined to 200,000 tons from six million tons, he said.
However, this year sugarcane production has again grown to four million tons, he added.
Asked about problems facing silkworm cocoon producers, he put the cocoon output at 1000 tons.
Experts say that fruit production can easily meet national demand. However, irregularities in distribution and sales have caused supply disruptions.
Although Iran, based on figures released by FAO, is among the world's 10 top countries in terms of production of fruits and vegetables, exorbitant fruit prices continue to exert further financial burden on low-income sections.
Compiled by Sadeq Dehqan
© Iran Daily 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100923045635/Iran%20Among%20Top%20Agro%20Producers
Wednesday, September 22, 2010
Wednesday, 22 September 2010 - 13 Shawwal 1431 H
Posted by Saudi Gazette
‘Wheat reserves need investments’
By Muhammad Al-Ghamdi
RIYADH – To increase the Kingdom’s wheat reserve from six months to one year would require investments and an increase in the storage capacity, Waleed Al-Khraiji, Director of the Grain Silos and Flour Mills Organization, has said.
Al-Khraiji made the comment in response to the suggestion made by the Shoura Council to increase the reserve to one year in order to deal with any emergencies and pointed out that the storage capacity could reach 10 years of wheat consumption.
Storage silos can store 2.5 million tons of wheat and projects are under way to add 500,000 tons of capacity, he said.
Al-Khraiji lauded the proposal made by the Shoura Council and noted that Kingdom’s storage capacity already exceeds that of several countries, which have stockpiles to cover four months.
In its session on Sunday, the Shoura Council has recommended that the Kingdom should strive to increase its wheat reserves to face any eventuality.
The Shoura Council’s recommendations include studying ways to increase the benefit from bran in a way that achieves the state’s goal to activate the national plan for making concentrated fodder and making the best use of it. – Okaz/SG
News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010092283700
Posted by Saudi Gazette
‘Wheat reserves need investments’
By Muhammad Al-Ghamdi
RIYADH – To increase the Kingdom’s wheat reserve from six months to one year would require investments and an increase in the storage capacity, Waleed Al-Khraiji, Director of the Grain Silos and Flour Mills Organization, has said.
Al-Khraiji made the comment in response to the suggestion made by the Shoura Council to increase the reserve to one year in order to deal with any emergencies and pointed out that the storage capacity could reach 10 years of wheat consumption.
Storage silos can store 2.5 million tons of wheat and projects are under way to add 500,000 tons of capacity, he said.
Al-Khraiji lauded the proposal made by the Shoura Council and noted that Kingdom’s storage capacity already exceeds that of several countries, which have stockpiles to cover four months.
In its session on Sunday, the Shoura Council has recommended that the Kingdom should strive to increase its wheat reserves to face any eventuality.
The Shoura Council’s recommendations include studying ways to increase the benefit from bran in a way that achieves the state’s goal to activate the national plan for making concentrated fodder and making the best use of it. – Okaz/SG
News Link: http://saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2010092283700
Sunday, September 19, 2010
Agricultural GDP put at SR44 billion
Arab News
19 September 2010
RIYADH: Saudi Arabia's gross domestic agricultural product reached SR44 billion in 2009, an official report carried by the Saudi Press Agency said on Saturday.
"The agriculture sector's contribution to the non-oil sector increased to 6.6 percent and to the gross domestic product 2.3 percent," the report said.
The report highlighted the remarkable progress achieved by Saudi Arabia in the agriculture sector, despite the presence of a huge area of deserts.
Since its inception in 1963, the Agricultural Development Fund gave 433,000 loans worth SR41.7 billion to farmers to purchase equipment, seeds and fertilizers.
"The fund also provided financial assistance valued at SR13.1 billion for various agricultural activities until 2009," the report said.
Although the Kingdom's production of grains declined from 4.86 million tons in 1994 to 1.6 million tons in 2009, its vegetable output rose considerably.
The total area where grains have been cultivated reached 328,725 hectares by 2009, the report said, adding that the number of livestock reached 14.2 million heads including 435,000 cows, 9.095 million heads of sheep and 810,000 camels.
The Kingdom currently produces more than 1.51 billion liters of dairy products, 760,000 tons of red meat, 508,000 tons of poultry and 96,000 tons of fish annually, the report pointed out.
The number of workers in the agriculture sector rose to 511,000 in 2009 and in the fisheries sector 28,000. There are 12,000 shipping boats in the country.
By P.K. ABDUL GHAFOUR
© Arab News 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100919032145/Saudi%20Arabia%3A%20Agricultural%20GDP%20put%20at%20SR44%20billion
Arab News
19 September 2010
RIYADH: Saudi Arabia's gross domestic agricultural product reached SR44 billion in 2009, an official report carried by the Saudi Press Agency said on Saturday.
"The agriculture sector's contribution to the non-oil sector increased to 6.6 percent and to the gross domestic product 2.3 percent," the report said.
The report highlighted the remarkable progress achieved by Saudi Arabia in the agriculture sector, despite the presence of a huge area of deserts.
Since its inception in 1963, the Agricultural Development Fund gave 433,000 loans worth SR41.7 billion to farmers to purchase equipment, seeds and fertilizers.
"The fund also provided financial assistance valued at SR13.1 billion for various agricultural activities until 2009," the report said.
Although the Kingdom's production of grains declined from 4.86 million tons in 1994 to 1.6 million tons in 2009, its vegetable output rose considerably.
The total area where grains have been cultivated reached 328,725 hectares by 2009, the report said, adding that the number of livestock reached 14.2 million heads including 435,000 cows, 9.095 million heads of sheep and 810,000 camels.
The Kingdom currently produces more than 1.51 billion liters of dairy products, 760,000 tons of red meat, 508,000 tons of poultry and 96,000 tons of fish annually, the report pointed out.
The number of workers in the agriculture sector rose to 511,000 in 2009 and in the fisheries sector 28,000. There are 12,000 shipping boats in the country.
By P.K. ABDUL GHAFOUR
© Arab News 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100919032145/Saudi%20Arabia%3A%20Agricultural%20GDP%20put%20at%20SR44%20billion
Saturday, September 18, 2010
Saudi dairy industry secures dominant 61 per cent share of GCC market
Press Release
Khalid Daou.
16 September 2010
Increasing number of health-conscious consumers drives strong demand for dairy food products
Saudi Arabia now accounts for a dominant 61 per cent share of the GCC's dairy market with an increasing number of health-conscious consumers helping sustain the strong demand for dairy food products in the country. Moreover, healthy and nutritious products such as fruit juices, flavoured milk drinks and yogurt are becoming more popular among the younger set of individuals or those in the 13 to 21 age bracket, who comprise up to 70 per cent of the country's total population, further contributing to the robust demand for dairy products.
Taking advantage of the growing consumer preference towards more nutritious food items, Saudi Agro-Food 2010 - The 17th International Tradeshow for Food Products, has organised various dedicated networking events for key industry players to discuss and explore various business and investment opportunities that have recently emerged, particularly in the dairy food segment. Organised by Riyadh Exhibitions, Saudi Agro-Food 2010 will run from October 4 to 7 at the Riyadh International Convention and Exhibition Centre, and will be held concurrently with Saudi Agriculture 2010 - The 29th International Agriculture, Water & Agri-Industry Show; and Saudi Food Pack 2010 - The International Exhibition for Food Processing and Packaging.
Khalid Daou, Project Manager of Saudi Agro-Food at Riyadh Exhibitions, said, "The GCC region's dairy industry continues to consolidate and has now reached a value of USD 2.8 billion. Saudi Arabia, for its part, holds a 61 per cent share of the GCC dairy market, establishing the country as the premier growth destination for key players in the region's dairy industry. Saudi Agro-Food 2010 will continue to provide an ideal platform for both local and international companies to showcase their products and reach out to various market segments, taking advantage of the surging demand for nutritious food items, particularly dairy food products."
Saudi Agro-Food 2010 will feature products and services in areas covering Animal Health and Production; Bakery Products; Canned Foods; Catering Supplies; Confectionery and Chocolates; Cutlery and Crockery; Dairy and Milk Products; Dried Goods; Energy Drinks; Fast Food and Snacks; Frozen and Chilled Foods; Health and Natural Foods; Meat and Poultry; Seafood Products and Special Diet Food products. The event will also incorporate specially designed lectures and workshops that will cover a wide range of industry topics, including food presentation, processing and packaging.
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100916075000/Saudi%20dairy%20industry%20secures%20dominant%2061%20per%20cent%20share%20of%20GCC%20market
Press Release
Khalid Daou.
16 September 2010
Increasing number of health-conscious consumers drives strong demand for dairy food products
Saudi Arabia now accounts for a dominant 61 per cent share of the GCC's dairy market with an increasing number of health-conscious consumers helping sustain the strong demand for dairy food products in the country. Moreover, healthy and nutritious products such as fruit juices, flavoured milk drinks and yogurt are becoming more popular among the younger set of individuals or those in the 13 to 21 age bracket, who comprise up to 70 per cent of the country's total population, further contributing to the robust demand for dairy products.
Taking advantage of the growing consumer preference towards more nutritious food items, Saudi Agro-Food 2010 - The 17th International Tradeshow for Food Products, has organised various dedicated networking events for key industry players to discuss and explore various business and investment opportunities that have recently emerged, particularly in the dairy food segment. Organised by Riyadh Exhibitions, Saudi Agro-Food 2010 will run from October 4 to 7 at the Riyadh International Convention and Exhibition Centre, and will be held concurrently with Saudi Agriculture 2010 - The 29th International Agriculture, Water & Agri-Industry Show; and Saudi Food Pack 2010 - The International Exhibition for Food Processing and Packaging.
Khalid Daou, Project Manager of Saudi Agro-Food at Riyadh Exhibitions, said, "The GCC region's dairy industry continues to consolidate and has now reached a value of USD 2.8 billion. Saudi Arabia, for its part, holds a 61 per cent share of the GCC dairy market, establishing the country as the premier growth destination for key players in the region's dairy industry. Saudi Agro-Food 2010 will continue to provide an ideal platform for both local and international companies to showcase their products and reach out to various market segments, taking advantage of the surging demand for nutritious food items, particularly dairy food products."
Saudi Agro-Food 2010 will feature products and services in areas covering Animal Health and Production; Bakery Products; Canned Foods; Catering Supplies; Confectionery and Chocolates; Cutlery and Crockery; Dairy and Milk Products; Dried Goods; Energy Drinks; Fast Food and Snacks; Frozen and Chilled Foods; Health and Natural Foods; Meat and Poultry; Seafood Products and Special Diet Food products. The event will also incorporate specially designed lectures and workshops that will cover a wide range of industry topics, including food presentation, processing and packaging.
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100916075000/Saudi%20dairy%20industry%20secures%20dominant%2061%20per%20cent%20share%20of%20GCC%20market
UAE global topper in rice re-exports
Khaleej Times
16 September 2010
DUBAI -- A study conducted by the Ministry of Foreign Trade revealed that the UAE has been the top global re-exporter of rice over the past five years (2005-2009).
The study, which was conducted by Abdel Hameed Radwan, an economics specialist at the ministry's Analysis and Information Department, and supervised by Dr Mohammed Mattar, the department's director, revealed that the UAE's share of global rice re-exports stood at 93 per cent, underlining the country's strategic importance in the global rice trade. The UAE has attained the top spot due to its geographical positioning in a pivotal point between the production, export, and consumption areas in South East Asia and the rest of the world. The competitiveness of the UAE's logistical services and the ease of customs procedures are the major factors that have helped the UAE attain this significant position in the rice trade.
The study revealed that the UAE's economic policy, which is based on free market principles, has aimed at benefiting from the international food commodities market in many ways, such as securing the acquisition of strategic food items to guarantee domestic economic security goals, and to achieve a food surplus for the stability of local markets. The policy also added a new dimension to the equation through making the UAE, with its superior re-export logistical capabilities, a pivotal transit point between producing and consuming regions.
The study highlighted the UAE's efforts to attain an advanced position among global commercial logistics hubs in non-oil trade through investing vast financial resources -- around $52 billion -- over the past 10 years on the transportation, storage and communications sectors. The UAE is now considered by international organisations as one of the five countries with very low export procedural costs, with the current average cost of exporting one container at $593 in comparison with the global average of $1383, making exporting from the UAE 133 per cent cheaper than the global average.
The study also revealed that the value of re-exported rice from the UAE increased from $120 million in 2005 (84 per cent of the overall global rice re-exports) to $112 million in 2006 (68 per cent), $180 million in 2007 (78 per cent). The export value witnessed a big leap in 2008, reaching $515 million (86.3 per cent) and increased even further in 2009 to $519 million, which constituted 93 per cent of the overall amount of global rice re-exports of 607,000 tonnes valued at $555 million.
The US came in second place in 2009 with $11.5 million in rice re-exports, constituting 2.1 per cent of the overall global re-export of the commodity, followed by Hong Kong with a value of $11 million, constituting two per cent of the global sum.
The value of re-exported rice in these three countries reached approximately $541 million and constituted 97 per cent of the overall value of the global re-exports in 2009.
The study added that although the quantity of rice imports to the UAE reached 1.238 million tonnes in 2009, slightly down by four per cent in comparison with 2008, 49 per cent of the imported quantity was re-exported, thus explaining the UAE's advanced position as the most important global importer of rice, in addition to it conducting over 90 per cent of the global rice re-exports.
The study stressed on the need to constantly search for new markets for rice re-exports in order to maintain the lead in the re-export of this commodity globally, and to develop current markets.
Imports
The UAE is considered as one of the top five global importers of rice during the period between 2005-2009. Even though 18 per cent less than the year before, it came in second place in 2009 with rice imports reaching $1.248 billion, constituting 8.8 per cent of all global imports of the commodity.
In terms of volume, the amount of imported rice grew by five per cent in 2009, reaching 8.8 million tonnes in 2009 compared to 8.4 million tonnes in 2008. According to the 2009 statistics, the UAE relies on three main countries for 99 per cent of its rice imports, with India in the lead at 72 per cent, Pakistan at 21 per cent and Thailand at six per cent. These countries are also considered the leading global
exporters of rice.
The study stressed on the importance of avoiding the risks of relying on India for most of the rice imports and suggested increasing Thailand's share, pointing out that there is a steady growth in the reliance on Indian rice at the expense of Pakistani rice while Thailand's share remained the same.
Global exports
The value of global rice exports reached $15.267 billion in 2009, registering a 27 per cent decrease in comparison with 2008, moving in parallel with a 29 per cent decrease in the amount of exported rice of 23 million tonnes mostly from Thailand and India.
The value of global rice imports reached $15.820 billion in 2009, registering a 12 per cent decrease in comparison with 2008.
© Khaleej Times 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100916032124/UAE%20global%20topper%20in%20rice%20re%2Dexports
Khaleej Times
16 September 2010
DUBAI -- A study conducted by the Ministry of Foreign Trade revealed that the UAE has been the top global re-exporter of rice over the past five years (2005-2009).
The study, which was conducted by Abdel Hameed Radwan, an economics specialist at the ministry's Analysis and Information Department, and supervised by Dr Mohammed Mattar, the department's director, revealed that the UAE's share of global rice re-exports stood at 93 per cent, underlining the country's strategic importance in the global rice trade. The UAE has attained the top spot due to its geographical positioning in a pivotal point between the production, export, and consumption areas in South East Asia and the rest of the world. The competitiveness of the UAE's logistical services and the ease of customs procedures are the major factors that have helped the UAE attain this significant position in the rice trade.
The study revealed that the UAE's economic policy, which is based on free market principles, has aimed at benefiting from the international food commodities market in many ways, such as securing the acquisition of strategic food items to guarantee domestic economic security goals, and to achieve a food surplus for the stability of local markets. The policy also added a new dimension to the equation through making the UAE, with its superior re-export logistical capabilities, a pivotal transit point between producing and consuming regions.
The study highlighted the UAE's efforts to attain an advanced position among global commercial logistics hubs in non-oil trade through investing vast financial resources -- around $52 billion -- over the past 10 years on the transportation, storage and communications sectors. The UAE is now considered by international organisations as one of the five countries with very low export procedural costs, with the current average cost of exporting one container at $593 in comparison with the global average of $1383, making exporting from the UAE 133 per cent cheaper than the global average.
The study also revealed that the value of re-exported rice from the UAE increased from $120 million in 2005 (84 per cent of the overall global rice re-exports) to $112 million in 2006 (68 per cent), $180 million in 2007 (78 per cent). The export value witnessed a big leap in 2008, reaching $515 million (86.3 per cent) and increased even further in 2009 to $519 million, which constituted 93 per cent of the overall amount of global rice re-exports of 607,000 tonnes valued at $555 million.
The US came in second place in 2009 with $11.5 million in rice re-exports, constituting 2.1 per cent of the overall global re-export of the commodity, followed by Hong Kong with a value of $11 million, constituting two per cent of the global sum.
The value of re-exported rice in these three countries reached approximately $541 million and constituted 97 per cent of the overall value of the global re-exports in 2009.
The study added that although the quantity of rice imports to the UAE reached 1.238 million tonnes in 2009, slightly down by four per cent in comparison with 2008, 49 per cent of the imported quantity was re-exported, thus explaining the UAE's advanced position as the most important global importer of rice, in addition to it conducting over 90 per cent of the global rice re-exports.
The study stressed on the need to constantly search for new markets for rice re-exports in order to maintain the lead in the re-export of this commodity globally, and to develop current markets.
Imports
The UAE is considered as one of the top five global importers of rice during the period between 2005-2009. Even though 18 per cent less than the year before, it came in second place in 2009 with rice imports reaching $1.248 billion, constituting 8.8 per cent of all global imports of the commodity.
In terms of volume, the amount of imported rice grew by five per cent in 2009, reaching 8.8 million tonnes in 2009 compared to 8.4 million tonnes in 2008. According to the 2009 statistics, the UAE relies on three main countries for 99 per cent of its rice imports, with India in the lead at 72 per cent, Pakistan at 21 per cent and Thailand at six per cent. These countries are also considered the leading global
exporters of rice.
The study stressed on the importance of avoiding the risks of relying on India for most of the rice imports and suggested increasing Thailand's share, pointing out that there is a steady growth in the reliance on Indian rice at the expense of Pakistani rice while Thailand's share remained the same.
Global exports
The value of global rice exports reached $15.267 billion in 2009, registering a 27 per cent decrease in comparison with 2008, moving in parallel with a 29 per cent decrease in the amount of exported rice of 23 million tonnes mostly from Thailand and India.
The value of global rice imports reached $15.820 billion in 2009, registering a 12 per cent decrease in comparison with 2008.
© Khaleej Times 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100916032124/UAE%20global%20topper%20in%20rice%20re%2Dexports
Wednesday, September 08, 2010
Government urged not to stop cultivation of wheat
Posted by Arab News
By SHAHEEN NAZAR | ARAB NEWS
Published: Aug 26, 2010 00:08 Updated: Aug 26, 2010 00:08
JEDDAH: Saudi Arabia should not abandon wheat cultivation and must continue to produce crops depending on the suitability and sustainability of each region, says a Saudi businessman.
Turki Faisal Al-Rasheed, chairman of Golden Gras Inc., a Riyadh-based agricultural company, called on the government to publish the master strategy for the agriculture industry allegedly promised in 2002.
He was referring to a 10-year-old agreement between the Ministry of Agriculture and King Saud University. But so far, it has not been made public, Al-Rasheed told Arab News.
In the absence of such a strategy, he said, Saudi Arabia was going to face a major crisis because “currently we are operating at full capacity. We do not have a stock of surplus food or any alternative plan to face an emergency.”
He called on the government to take action, otherwise the Kingdom will have to face the consequences of any crisis, whether it is political or natural, anywhere in the world.
Saudi Arabia relies on foreign supplies for wheat and other staple crops. Wheat prices in the international market have risen by nearly 70 percent since June after Russia suffered its worst drought in 130 years, even banning wheat exports until further notice.
Al-Rasheed said though the situation was not going to affect the Kingdom directly, it should be a cause for concern for planners in the Kingdom. “What if tomorrow there is a crisis in Pakistan’s Punjab province, which is the main source for our rice? We must have a cushion to face any eventuality,” he added.
Al-Rasheed called for establishing Kingdomwide storage facilities for food essentials like barley, rice, oil and sugar. Right now, there are only wheat silos in Jeddah, Riyadh and Dammam, he said.
Currently, Saudi Arabia produces around one million tons of wheat and imports twice as much to fulfill domestic demand. Beyond 2016, the Kingdom will be solely depending on imports as the government has decided to stop wheat cultivation to save underground water for future generations.
Al-Rasheed was of the opinion that there should not be a blanket ban and production should continue depending on water levels in each region.
News Link: http://arabnews.com/saudiarabia/article113862.ece
Posted by Arab News
By SHAHEEN NAZAR | ARAB NEWS
Published: Aug 26, 2010 00:08 Updated: Aug 26, 2010 00:08
JEDDAH: Saudi Arabia should not abandon wheat cultivation and must continue to produce crops depending on the suitability and sustainability of each region, says a Saudi businessman.
Turki Faisal Al-Rasheed, chairman of Golden Gras Inc., a Riyadh-based agricultural company, called on the government to publish the master strategy for the agriculture industry allegedly promised in 2002.
He was referring to a 10-year-old agreement between the Ministry of Agriculture and King Saud University. But so far, it has not been made public, Al-Rasheed told Arab News.
In the absence of such a strategy, he said, Saudi Arabia was going to face a major crisis because “currently we are operating at full capacity. We do not have a stock of surplus food or any alternative plan to face an emergency.”
He called on the government to take action, otherwise the Kingdom will have to face the consequences of any crisis, whether it is political or natural, anywhere in the world.
Saudi Arabia relies on foreign supplies for wheat and other staple crops. Wheat prices in the international market have risen by nearly 70 percent since June after Russia suffered its worst drought in 130 years, even banning wheat exports until further notice.
Al-Rasheed said though the situation was not going to affect the Kingdom directly, it should be a cause for concern for planners in the Kingdom. “What if tomorrow there is a crisis in Pakistan’s Punjab province, which is the main source for our rice? We must have a cushion to face any eventuality,” he added.
Al-Rasheed called for establishing Kingdomwide storage facilities for food essentials like barley, rice, oil and sugar. Right now, there are only wheat silos in Jeddah, Riyadh and Dammam, he said.
Currently, Saudi Arabia produces around one million tons of wheat and imports twice as much to fulfill domestic demand. Beyond 2016, the Kingdom will be solely depending on imports as the government has decided to stop wheat cultivation to save underground water for future generations.
Al-Rasheed was of the opinion that there should not be a blanket ban and production should continue depending on water levels in each region.
News Link: http://arabnews.com/saudiarabia/article113862.ece
Monday, September 06, 2010
Fears grow over global food supply
Posted by CNN
By Javier Blas, Courtney Weaver and Simon Mundy, FT.com
September 3, 2010 -- Updated 1039 GMT (1839 HKT)
STORY HIGHLIGHTS
* Russia announced a 12-month extension of its grain export ban on Thursday
* Raises fears about a return to the food shortages and riots of 2007-08
* UN called an emergency meeting on food riots in Mozambique left seven dead
(FT) -- Russia announced a 12-month extension of its grain export ban on Thursday, raising fears about a return to the food shortages and riots of 2007-08 which spread through developing countries dependent on imports.
The announcement by Vladimir Putin came as the UN's Food and Agriculture Organisation called an emergency meeting to discuss the wheat shortage, and riots in Mozambique left seven dead.
The unrest in Maputo, in which 280 people were also injured, followed the government's decision to raise bread prices by 30 per cent. Police opened fire on demonstrators after thousands turned out to protest against the price hikes, burning tyres and looting food warehouses.
Although agricultural officials and traders insist that wheat and other crop supplies are more abundant than in 2007-08, officials fear the deadly Mozambique riots could be replicated.
The 2007-08 food shortages, the most severe in 30 years, set off riots in countries from Bangladesh to Mexico, and helped to trigger the collapse of governments in Haiti and Madagascar.
The Russian announcement extended an export ban first announced last month until late December 2011, sending wheat and other cereals prices to near a two-year high.
The FAO said that "the concern about a possible repeat of the 2007-08 food crisis" had resulted in "an enormous number" of inquiries from member countries. "The purpose of holding this meeting is for exporting and importing countries to engage."
Russia is traditionally the world's fourth-largest wheat exporter, and the export ban has already forced importers in the Middle East and North Africa, the biggest buyers, to seek supplies in Europe and the US.
Food prices surgeMr Putin said Moscow could "only consider lifting the export ban after next year's crop has been harvested and we have clarity on the grain balances". He added that the decision to extend the ban was intended to "end unnecessary anxiety and to ensure a stable and predict-able business environment for market participants".
"This is quite serious," said Abdolreza Abbassian, of the FAO in Rome. "Two years in a row without Russian exports creates quite a disturbance." Dan Manternach, chief wheat economist at Doane Agricultural Services in St Louis, added: "This is a wake-up call for importing nations about the reliability of Russia."
Jakkie Cilliers, director of South Africa's Institute of Security Studies, said there was concern over a repeat of the protests of 2008: "That certainly strengthened a return of the military in politics in Africa."
European wheat prices on Thursday hit €231.5 a tonne, just shy of last month's two-year high of €236. Wheat prices have surged nearly 70 per cent since January, and analysts forecast further rises after Russia's decision and concerns about weather damage to Australia's crop.
© The Financial Times Limited 2010
News Link: http://edition.cnn.com/2010/BUSINESS/09/02/global.food.supply.ft/index.html#fbid=BPo7wvFPSKL&wom=false
Posted by CNN
By Javier Blas, Courtney Weaver and Simon Mundy, FT.com
September 3, 2010 -- Updated 1039 GMT (1839 HKT)
STORY HIGHLIGHTS
* Russia announced a 12-month extension of its grain export ban on Thursday
* Raises fears about a return to the food shortages and riots of 2007-08
* UN called an emergency meeting on food riots in Mozambique left seven dead
(FT) -- Russia announced a 12-month extension of its grain export ban on Thursday, raising fears about a return to the food shortages and riots of 2007-08 which spread through developing countries dependent on imports.
The announcement by Vladimir Putin came as the UN's Food and Agriculture Organisation called an emergency meeting to discuss the wheat shortage, and riots in Mozambique left seven dead.
The unrest in Maputo, in which 280 people were also injured, followed the government's decision to raise bread prices by 30 per cent. Police opened fire on demonstrators after thousands turned out to protest against the price hikes, burning tyres and looting food warehouses.
Although agricultural officials and traders insist that wheat and other crop supplies are more abundant than in 2007-08, officials fear the deadly Mozambique riots could be replicated.
The 2007-08 food shortages, the most severe in 30 years, set off riots in countries from Bangladesh to Mexico, and helped to trigger the collapse of governments in Haiti and Madagascar.
The Russian announcement extended an export ban first announced last month until late December 2011, sending wheat and other cereals prices to near a two-year high.
The FAO said that "the concern about a possible repeat of the 2007-08 food crisis" had resulted in "an enormous number" of inquiries from member countries. "The purpose of holding this meeting is for exporting and importing countries to engage."
Russia is traditionally the world's fourth-largest wheat exporter, and the export ban has already forced importers in the Middle East and North Africa, the biggest buyers, to seek supplies in Europe and the US.
Food prices surgeMr Putin said Moscow could "only consider lifting the export ban after next year's crop has been harvested and we have clarity on the grain balances". He added that the decision to extend the ban was intended to "end unnecessary anxiety and to ensure a stable and predict-able business environment for market participants".
"This is quite serious," said Abdolreza Abbassian, of the FAO in Rome. "Two years in a row without Russian exports creates quite a disturbance." Dan Manternach, chief wheat economist at Doane Agricultural Services in St Louis, added: "This is a wake-up call for importing nations about the reliability of Russia."
Jakkie Cilliers, director of South Africa's Institute of Security Studies, said there was concern over a repeat of the protests of 2008: "That certainly strengthened a return of the military in politics in Africa."
European wheat prices on Thursday hit €231.5 a tonne, just shy of last month's two-year high of €236. Wheat prices have surged nearly 70 per cent since January, and analysts forecast further rises after Russia's decision and concerns about weather damage to Australia's crop.
© The Financial Times Limited 2010
News Link: http://edition.cnn.com/2010/BUSINESS/09/02/global.food.supply.ft/index.html#fbid=BPo7wvFPSKL&wom=false
Saturday, September 04, 2010
Millions lost in water leakage per year, says study
The Saudi Gazette
01 September 2010
DHAHRAN - Water leakage in pipeline networks across the Kingdom results in losses amounting to SR3,075 million annually, according to a study conducted by the Center for Clean Water and Clean Energy.
The center is a joint research group consisting of scientists from King Fahd University of Petroleum and MineralsKing Fahd University of Petroleum and Minerals
King Fahd University of Petroleum and Minerals (KFUPM) and the Massachusetts Institute of Technology (MIT).
The current capacity of desalination plants within the Kingdom is estimated at six million cubic meters per day, a record that is expected to rise to more than 10 million cubic meters per day over the next five years.
Major cities across the Kingdom depend on desalination for more than 90 percent of their water needs.
The center, which is based both at KFUPM and MIT, estimated that 30 percent of the water transported daily across the country via the pipelines, mainly to Riyadh, Jeddah and Madina, is lost due to leakage.
The amount of wastage water, based on SR2.8 per cubic meter, has been estimated at SR3,075 million.
This problem of water leakage causes not only clean water and clean energy losses, but also increases water contamination with hazardous chemicals and metals, according to the study. Medical doctors from the Department of Oncology at the King Faisal Specialist Hospital, Riyadh have already reported that water contamination is causing esophageal cancer in Qassim region, and is now considered a major health problem.
To address the problem of leaking pipelines, the center has proposed the development of conceptual designs of water leak and water contamination detection systems, including the building of working prototypes for both leak and contamination sensing, testing in a laboratory pipe network, and exploring methods of monitoring water distribution system.
The development of the leak and contamination system will be divided in phases and will be completed within five years.
The networks of developed sensors will be installed across the length of the pipelines throughout the Kingdom.
The sensors will have multiple capabilities, including leak detection, temperature sensing, and contamination sensing of at least three priority contaminants. The networks will have wireless connection capable of alarming operators and major water distribution centers of major leaks and critical contamination levels.
The sensors to be developed will become an integral component of the water distribution system in Saudi Arabia, and will eventually help in future planning of better strategies to avoid water leakage and contamination.
By Joe Avancena
© The Saudi Gazette 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100901043619
The Saudi Gazette
01 September 2010
DHAHRAN - Water leakage in pipeline networks across the Kingdom results in losses amounting to SR3,075 million annually, according to a study conducted by the Center for Clean Water and Clean Energy.
The center is a joint research group consisting of scientists from King Fahd University of Petroleum and MineralsKing Fahd University of Petroleum and Minerals
King Fahd University of Petroleum and Minerals (KFUPM) and the Massachusetts Institute of Technology (MIT).
The current capacity of desalination plants within the Kingdom is estimated at six million cubic meters per day, a record that is expected to rise to more than 10 million cubic meters per day over the next five years.
Major cities across the Kingdom depend on desalination for more than 90 percent of their water needs.
The center, which is based both at KFUPM and MIT, estimated that 30 percent of the water transported daily across the country via the pipelines, mainly to Riyadh, Jeddah and Madina, is lost due to leakage.
The amount of wastage water, based on SR2.8 per cubic meter, has been estimated at SR3,075 million.
This problem of water leakage causes not only clean water and clean energy losses, but also increases water contamination with hazardous chemicals and metals, according to the study. Medical doctors from the Department of Oncology at the King Faisal Specialist Hospital, Riyadh have already reported that water contamination is causing esophageal cancer in Qassim region, and is now considered a major health problem.
To address the problem of leaking pipelines, the center has proposed the development of conceptual designs of water leak and water contamination detection systems, including the building of working prototypes for both leak and contamination sensing, testing in a laboratory pipe network, and exploring methods of monitoring water distribution system.
The development of the leak and contamination system will be divided in phases and will be completed within five years.
The networks of developed sensors will be installed across the length of the pipelines throughout the Kingdom.
The sensors will have multiple capabilities, including leak detection, temperature sensing, and contamination sensing of at least three priority contaminants. The networks will have wireless connection capable of alarming operators and major water distribution centers of major leaks and critical contamination levels.
The sensors to be developed will become an integral component of the water distribution system in Saudi Arabia, and will eventually help in future planning of better strategies to avoid water leakage and contamination.
By Joe Avancena
© The Saudi Gazette 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100901043619
SFDA warns of surprise inspection tours
The Saudi Gazette
04 September 2010
JEDDAH - The Saudi Food and Drug Authority (SFDA) would soon approve a new plan aiming at preventing the spread of unlicensed or counterfeit medicines and medical preparations, an official at the authority said here on Thursday.
The official said according to the plan, surprise inspection tours would be carried out on pharmacies and medicine warehouses in case the authority receives reports on medicines having caused harm to consumers.
The official pointed out that the authority is laying down a description of the side effects of medicines in order to publish and circulate them.
The new plan, according to the official, also focuses on pursuing unofficial activities in the medicines sector by carrying out preemptive campaigns against sales outlets and creating the mechanisms for withdrawing such preparations from the markets.
It also stipulates fining distributors and importers in case they are proven to have dealt in unlicensed medicines, the official said.
By Abdul Rahman Al-Khatarish
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100904042030/SFDA%20warns%20of%20surprise%20inspection%20tours%20
The Saudi Gazette
04 September 2010
JEDDAH - The Saudi Food and Drug Authority (SFDA) would soon approve a new plan aiming at preventing the spread of unlicensed or counterfeit medicines and medical preparations, an official at the authority said here on Thursday.
The official said according to the plan, surprise inspection tours would be carried out on pharmacies and medicine warehouses in case the authority receives reports on medicines having caused harm to consumers.
The official pointed out that the authority is laying down a description of the side effects of medicines in order to publish and circulate them.
The new plan, according to the official, also focuses on pursuing unofficial activities in the medicines sector by carrying out preemptive campaigns against sales outlets and creating the mechanisms for withdrawing such preparations from the markets.
It also stipulates fining distributors and importers in case they are proven to have dealt in unlicensed medicines, the official said.
By Abdul Rahman Al-Khatarish
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100904042030/SFDA%20warns%20of%20surprise%20inspection%20tours%20
Monday, August 30, 2010
Safar: Syria Has Achieved Self-Sufficiency in Wheat Production
Posted by Zawya
SANA (Syria Arab News Agency)
27 August 2010
Minister of Agriculture Adel Safar said Syria's production of wheat in 2010 has covered the entire local needs and achieved self-sufficiency, adding that wheat stockpile will cover the country's need for the next two years.
In a statement to al-Baath newspaper published Wednesday, Safar said that this year's production has also provided the seeds required for the next wheat cultivation season.
He pointed out that the latest indicators of wheat production worldwide have shown that Syria is the least affected by the damages which hit the crop due to drought and its impacts which led to a drop in the global production of wheat, in addition to infection with the yellow rust by 5 percent.
Safar said that Syria's production of wheat reaching 3,3 million tons is very considerable compared to the large reduction in wheat production in many countries, asserting that Syria is one of the few countries which covered its needs from its own production, while several countries in the region tend to import this necessary strategic food.
He pointed out that the ministry has recently adopted a new work plan for wheat cultivation in Syria through implementing deliberated efficient prodecures to deal with the factors that affect wheat cultivation and adopting all precautionary measures to ensure stability in planting this crop.
He added that the measures focused on planting types of wheat that are most tolerant and resistant to drought.
The Minister said that enhancing the potential of success for wheat cultivation is an absolute priority to the country to boost the self-sufficiency policy and food security of such strategic crops.
By H. Zain/ H. Said
© SANA (Syria Arab News Agency) 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100828052922/Safar%3A%20Syria%20Has%20Achieved%20Self%2DSufficiency%20in%20Wheat%20Production
Posted by Zawya
SANA (Syria Arab News Agency)
27 August 2010
Minister of Agriculture Adel Safar said Syria's production of wheat in 2010 has covered the entire local needs and achieved self-sufficiency, adding that wheat stockpile will cover the country's need for the next two years.
In a statement to al-Baath newspaper published Wednesday, Safar said that this year's production has also provided the seeds required for the next wheat cultivation season.
He pointed out that the latest indicators of wheat production worldwide have shown that Syria is the least affected by the damages which hit the crop due to drought and its impacts which led to a drop in the global production of wheat, in addition to infection with the yellow rust by 5 percent.
Safar said that Syria's production of wheat reaching 3,3 million tons is very considerable compared to the large reduction in wheat production in many countries, asserting that Syria is one of the few countries which covered its needs from its own production, while several countries in the region tend to import this necessary strategic food.
He pointed out that the ministry has recently adopted a new work plan for wheat cultivation in Syria through implementing deliberated efficient prodecures to deal with the factors that affect wheat cultivation and adopting all precautionary measures to ensure stability in planting this crop.
He added that the measures focused on planting types of wheat that are most tolerant and resistant to drought.
The Minister said that enhancing the potential of success for wheat cultivation is an absolute priority to the country to boost the self-sufficiency policy and food security of such strategic crops.
By H. Zain/ H. Said
© SANA (Syria Arab News Agency) 2010
News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100828052922/Safar%3A%20Syria%20Has%20Achieved%20Self%2DSufficiency%20in%20Wheat%20Production
Saturday, August 28, 2010
Government urged not to stop cultivation of wheat
By SHAHEEN NAZAR | ARAB NEWS
Published: Aug 26, 2010 00:08 Updated: Aug 26, 2010 00:08
JEDDAH: Saudi Arabia should not abandon wheat cultivation and must continue to produce crops depending on the suitability and sustainability of each region, says a Saudi businessman.
Turki Faisal Al-Rasheed, chairman of Golden Gras Inc., a Riyadh-based agricultural company, called on the government to publish the master strategy for the agriculture industry allegedly promised in 2002.
He was referring to a 10-year-old agreement between the Ministry of Agriculture and King Saud University. But so far, it has not been made public, Al-Rasheed told Arab News.
In the absence of such a strategy, he said, Saudi Arabia was going to face a major crisis because “currently we are operating at full capacity. We do not have a stock of surplus food or any alternative plan to face an emergency.”
He called on the government to take action, otherwise the Kingdom will have to face the consequences of any crisis, whether it is political or natural, anywhere in the world.
Saudi Arabia relies on foreign supplies for wheat and other staple crops. Wheat prices in the international market have risen by nearly 70 percent since June after Russia suffered its worst drought in 130 years, even banning wheat exports until further notice.
Al-Rasheed said though the situation was not going to affect the Kingdom directly, it should be a cause for concern for planners in the Kingdom. “What if tomorrow there is a crisis in Pakistan’s Punjab province, which is the main source for our rice? We must have a cushion to face any eventuality,” he added.
Al-Rasheed called for establishing Kingdomwide storage facilities for food essentials like barley, rice, oil and sugar. Right now, there are only wheat silos in Jeddah, Riyadh and Dammam, he said.
Currently, Saudi Arabia produces around one million tons of wheat and imports twice as much to fulfill domestic demand. Beyond 2016, the Kingdom will be solely depending on imports as the government has decided to stop wheat cultivation to save underground water for future generations.
Al-Rasheed was of the opinion that there should not be a blanket ban and production should continue depending on water levels in each region.
News Link: http://arabnews.com/saudiarabia/article113862.ece
By SHAHEEN NAZAR | ARAB NEWS
Published: Aug 26, 2010 00:08 Updated: Aug 26, 2010 00:08
JEDDAH: Saudi Arabia should not abandon wheat cultivation and must continue to produce crops depending on the suitability and sustainability of each region, says a Saudi businessman.
Turki Faisal Al-Rasheed, chairman of Golden Gras Inc., a Riyadh-based agricultural company, called on the government to publish the master strategy for the agriculture industry allegedly promised in 2002.
He was referring to a 10-year-old agreement between the Ministry of Agriculture and King Saud University. But so far, it has not been made public, Al-Rasheed told Arab News.
In the absence of such a strategy, he said, Saudi Arabia was going to face a major crisis because “currently we are operating at full capacity. We do not have a stock of surplus food or any alternative plan to face an emergency.”
He called on the government to take action, otherwise the Kingdom will have to face the consequences of any crisis, whether it is political or natural, anywhere in the world.
Saudi Arabia relies on foreign supplies for wheat and other staple crops. Wheat prices in the international market have risen by nearly 70 percent since June after Russia suffered its worst drought in 130 years, even banning wheat exports until further notice.
Al-Rasheed said though the situation was not going to affect the Kingdom directly, it should be a cause for concern for planners in the Kingdom. “What if tomorrow there is a crisis in Pakistan’s Punjab province, which is the main source for our rice? We must have a cushion to face any eventuality,” he added.
Al-Rasheed called for establishing Kingdomwide storage facilities for food essentials like barley, rice, oil and sugar. Right now, there are only wheat silos in Jeddah, Riyadh and Dammam, he said.
Currently, Saudi Arabia produces around one million tons of wheat and imports twice as much to fulfill domestic demand. Beyond 2016, the Kingdom will be solely depending on imports as the government has decided to stop wheat cultivation to save underground water for future generations.
Al-Rasheed was of the opinion that there should not be a blanket ban and production should continue depending on water levels in each region.
News Link: http://arabnews.com/saudiarabia/article113862.ece
Tuesday, August 24, 2010
Political risks to Saudi farm investment abroad
It should forge strategic alliances with global food giants to facilitate access to land or to final products: BSF
Posted by Emirates247.com
By Nadim Kawach
Published Monday, August 23, 2010
The surge in food prices in 2008 served as an alarm for Saudi Arabia to embark on massive farmland investment in fertile countries. (SUPPLIED)
Saudi Arabia needs to consider political risks in its massive drive to invest in the agricultural sector abroad to meet its soaring food needs and cut a huge farm import bill, according to a key bank in the kingdom.
The world’s oil superpower should also try and finalise strategic alliances with major global food suppliers to ensure its farm needs in the long term and offset risks of shortages or disruptions, Banque Saudi Fransi (BSF) said.
In a study sent to Emirates 24|7, BSF said the surge in food prices in 2008 served as an alarm for the world’s richest country in oil and poorest in water to embark on massive farmland investment in fertile countries, including Turkey, Sudan, Ethiopia, Vietnam, Ukraine and Kazakhstan.
“Investing in agriculture abroad is easier said than done because the investments are often politically charged and local players could regard Gulf investors as potential ‘land grabbers’. Certain sub-Saharan African countries are themselves often net food importers, adding to the investment risk, particularly given severe climate changes occurring globally, the first half of 2010 was the warmest on record,” John Sfakiankis, BSF Chief Economist, said in the report.
“Private sector firms, meanwhile, would need support of local governments to develop infrastructure. The Food and Agriculture Organisation (FAO) estimates that, in addition to public investments, $209 billion in gross annual investments are needed in primary agriculture and downstream services in developing countries to meet global food requirements by 2050.”
BSF said for the Saudi initiative to succeed, private investors from the kingdom should have access to crucial investment information about target countries so they can base their decisions on geography, political risk, rule of law and domestic economic and infrastructure conditions.
It noted that the Saudi government has acted as a facilitator between investors and some of the countries under consideration.
“Even with these elements in place, the system would need to be tested during a food supply crisis at domestic and/or global levels,” it said.
“Private investors looking for higher profits could seek to export their crop to global markets instead of Saudi Arabia. Offtake agreements - signed between producers and buyers of resources - will need to be tested for how legally binding they are and whether the purchaser will be required to incur upfront infrastructure investments. Still, offtake agreements offer little investment risk, especially in mature and developed economies.”
The study said the desert kingdom, the largest Arab economy, could also look to strike “strategic alliances”, not necessarily based on equity acquisitions, with global food giants with decades of experience and local field knowledge.
It said these multinational companies offer “enormous” economies of scale, vertical integration, financing, research capabilities and global strategic alliances.
“Forging such agreements could facilitate access to either land in sub-Saharan Africa and elsewhere or to final products,” it added.
BSF said the vulnerability of Saudi Arabia, which relies on imports for about 70 per cent of food supplies, was heightened by its plan to phase out the production of wheat and some other water-intensive crops following decades of rapid depletion of non-renewable water resources.
It said the country needs about 2.7 million tonnes per year of wheat, around 800,000 million tonnes of rice and over 6.3 million tonnes of barley, nearly 45 per cent of total global exports. In total, it demands about 14 million tonnes of animal feed each year for livestock, it said.
Citing figures by the US-Saudi Business Council, it said up to 2008, Saudi Arabia was paradoxically a net exporter of wheat despite having one of the world’s lowest renewable water resources.
In order to face challenges of shrinking water resources and global food shortages, a government initiative was unveiled two years ago to reduce wheat production by 12.5 per cent per year until halting it completely by 2016.
BSF referred to King Abdullah’s agricultural Initiative, which took effect in early 2009. Backed by a SR3bn government-sponsored fund, the initiative aims to improve long-term food security by enabling private Saudi businesses to invest in agricultural projects in countries better suited for crop cultivation.
Saudi Arabia hopes to secure supplies of essential commodities such as sugar, rice, wheat, barley, soybeans and maize, livestock and animal feed.
“Given the scale of investments required, the fund would need to be enhanced if it is to achieve a stated goal of building a strategic reserve of basic commodities to avoid any future food crisis,” the study said.
It noted that Kazakhstan’s largest crop is wheat, ranking as the sixth largest in the world. However, agricultural lands were depleted of their nutrients during the Soviet era, which continues to impact production today, it said.
Ukraine provides opportunities for agricultural production (barley and wheat) but like Kazakhstan governance, infrastructure, and transparency issues pose challenges for potential investors, the study added.
“Similarly, Sudan’s agricultural potential could be significant but infrastructure, the hydropolitics of the Nile and stability challenges cannot be ignored. Turkey’s dynamic macroeconomic profile, stable politics and elevated rule of law has attracted foreign investors,” the study said.
“Wheat, first domesticated in southeastern Turkey, is widely produced although traditionally it imports Black Sea wheat from Russia. However, weak harvests are not uncommon due to drought and there is no legal settlement of the usage of the Tigris and Euphrates rivers by the riparian states, Turkey, Syria and Iraq.”
Turning to Vietnam, BSF said its attraction is due to its rice production capacity, being the world’s second largest rice exporter after Thailand. Vietnam is one of Asia’s most open economies and among the world’s fastest growing, it added.
As for Egypt, its agricultural potential is constraint by limited arable land, a growing population and water inefficiencies, BSF said.
“Finally, Ethiopia’s agriculture potential is vast but would require considerable infrastructure investments as well as better reorganisation. Ethiopia is often ironically referred to as the ‘water tower’ of Eastern Africa because of the many (14 major) rivers that pour off the high tableland. It also has the greatest water reserves in Africa, but few irrigation systems in place to use it.”
In 2008, the United Nations World Food Program helped feed 11 million people in Ethiopia, which suffers from crop failures and food distribution problems.
“However, there are other countries that need to be carefully examined, notwithstanding their own specific challenges, including Brazil, Argentina, Canada, New Zealand and Australia that offer predictability, rule of law and macroeconomic stability and an extensive farming experience,” the study said.
News Link: http://www.emirates247.com/business/economy-finance/political-risks-to-saudi-farm-investment-abroad-2010-08-23-1.282615
It should forge strategic alliances with global food giants to facilitate access to land or to final products: BSF
Posted by Emirates247.com
By Nadim Kawach
Published Monday, August 23, 2010
The surge in food prices in 2008 served as an alarm for Saudi Arabia to embark on massive farmland investment in fertile countries. (SUPPLIED)
Saudi Arabia needs to consider political risks in its massive drive to invest in the agricultural sector abroad to meet its soaring food needs and cut a huge farm import bill, according to a key bank in the kingdom.
The world’s oil superpower should also try and finalise strategic alliances with major global food suppliers to ensure its farm needs in the long term and offset risks of shortages or disruptions, Banque Saudi Fransi (BSF) said.
In a study sent to Emirates 24|7, BSF said the surge in food prices in 2008 served as an alarm for the world’s richest country in oil and poorest in water to embark on massive farmland investment in fertile countries, including Turkey, Sudan, Ethiopia, Vietnam, Ukraine and Kazakhstan.
“Investing in agriculture abroad is easier said than done because the investments are often politically charged and local players could regard Gulf investors as potential ‘land grabbers’. Certain sub-Saharan African countries are themselves often net food importers, adding to the investment risk, particularly given severe climate changes occurring globally, the first half of 2010 was the warmest on record,” John Sfakiankis, BSF Chief Economist, said in the report.
“Private sector firms, meanwhile, would need support of local governments to develop infrastructure. The Food and Agriculture Organisation (FAO) estimates that, in addition to public investments, $209 billion in gross annual investments are needed in primary agriculture and downstream services in developing countries to meet global food requirements by 2050.”
BSF said for the Saudi initiative to succeed, private investors from the kingdom should have access to crucial investment information about target countries so they can base their decisions on geography, political risk, rule of law and domestic economic and infrastructure conditions.
It noted that the Saudi government has acted as a facilitator between investors and some of the countries under consideration.
“Even with these elements in place, the system would need to be tested during a food supply crisis at domestic and/or global levels,” it said.
“Private investors looking for higher profits could seek to export their crop to global markets instead of Saudi Arabia. Offtake agreements - signed between producers and buyers of resources - will need to be tested for how legally binding they are and whether the purchaser will be required to incur upfront infrastructure investments. Still, offtake agreements offer little investment risk, especially in mature and developed economies.”
The study said the desert kingdom, the largest Arab economy, could also look to strike “strategic alliances”, not necessarily based on equity acquisitions, with global food giants with decades of experience and local field knowledge.
It said these multinational companies offer “enormous” economies of scale, vertical integration, financing, research capabilities and global strategic alliances.
“Forging such agreements could facilitate access to either land in sub-Saharan Africa and elsewhere or to final products,” it added.
BSF said the vulnerability of Saudi Arabia, which relies on imports for about 70 per cent of food supplies, was heightened by its plan to phase out the production of wheat and some other water-intensive crops following decades of rapid depletion of non-renewable water resources.
It said the country needs about 2.7 million tonnes per year of wheat, around 800,000 million tonnes of rice and over 6.3 million tonnes of barley, nearly 45 per cent of total global exports. In total, it demands about 14 million tonnes of animal feed each year for livestock, it said.
Citing figures by the US-Saudi Business Council, it said up to 2008, Saudi Arabia was paradoxically a net exporter of wheat despite having one of the world’s lowest renewable water resources.
In order to face challenges of shrinking water resources and global food shortages, a government initiative was unveiled two years ago to reduce wheat production by 12.5 per cent per year until halting it completely by 2016.
BSF referred to King Abdullah’s agricultural Initiative, which took effect in early 2009. Backed by a SR3bn government-sponsored fund, the initiative aims to improve long-term food security by enabling private Saudi businesses to invest in agricultural projects in countries better suited for crop cultivation.
Saudi Arabia hopes to secure supplies of essential commodities such as sugar, rice, wheat, barley, soybeans and maize, livestock and animal feed.
“Given the scale of investments required, the fund would need to be enhanced if it is to achieve a stated goal of building a strategic reserve of basic commodities to avoid any future food crisis,” the study said.
It noted that Kazakhstan’s largest crop is wheat, ranking as the sixth largest in the world. However, agricultural lands were depleted of their nutrients during the Soviet era, which continues to impact production today, it said.
Ukraine provides opportunities for agricultural production (barley and wheat) but like Kazakhstan governance, infrastructure, and transparency issues pose challenges for potential investors, the study added.
“Similarly, Sudan’s agricultural potential could be significant but infrastructure, the hydropolitics of the Nile and stability challenges cannot be ignored. Turkey’s dynamic macroeconomic profile, stable politics and elevated rule of law has attracted foreign investors,” the study said.
“Wheat, first domesticated in southeastern Turkey, is widely produced although traditionally it imports Black Sea wheat from Russia. However, weak harvests are not uncommon due to drought and there is no legal settlement of the usage of the Tigris and Euphrates rivers by the riparian states, Turkey, Syria and Iraq.”
Turning to Vietnam, BSF said its attraction is due to its rice production capacity, being the world’s second largest rice exporter after Thailand. Vietnam is one of Asia’s most open economies and among the world’s fastest growing, it added.
As for Egypt, its agricultural potential is constraint by limited arable land, a growing population and water inefficiencies, BSF said.
“Finally, Ethiopia’s agriculture potential is vast but would require considerable infrastructure investments as well as better reorganisation. Ethiopia is often ironically referred to as the ‘water tower’ of Eastern Africa because of the many (14 major) rivers that pour off the high tableland. It also has the greatest water reserves in Africa, but few irrigation systems in place to use it.”
In 2008, the United Nations World Food Program helped feed 11 million people in Ethiopia, which suffers from crop failures and food distribution problems.
“However, there are other countries that need to be carefully examined, notwithstanding their own specific challenges, including Brazil, Argentina, Canada, New Zealand and Australia that offer predictability, rule of law and macroeconomic stability and an extensive farming experience,” the study said.
News Link: http://www.emirates247.com/business/economy-finance/political-risks-to-saudi-farm-investment-abroad-2010-08-23-1.282615
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