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

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

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
Abu Dhabi to save millions of cubic metres of water annually by banning Rhodes grass Grass ban to save huge amount of water
Posted by Zawya
Gulf News
Tuesday, Aug 24, 2010


Rhodes grass consumes 24,000 cubic metres of water annually
Abu Dhabi to phase out cultivation of crop used as principal animal feed in region

Abu Dhabi Abu Dhabi is set to save an estimated millions of cubic metres of water annually by banning the cultivation of a water-intensive grass used as a principal animal feed, Gulf News has learnt.

The move is significant as the government is concerned about “unplanned and uncontrolled ground water withdrawals” of more than two billion cubic metres annually, especially in the agriculture and forestry sector.

The withdrawals are causing a decline in ground water levels and water quality in many areas.

The Abu Dhabi Food Control Authority (ADFCA), which is responsible for the agriculture sector in the emirate, yesterday revealed a plan to phase out the cultivation of rhodes grass, a principal animal feed in the region and a water-intensive crop.

The phase-out will eventually lead to a ban, Gulf News has learnt.

“We are considering the phasing out of the cultivation of rhodes grass which consumes a whopping 24000 cubic metres of water per hectare annually,” a ADFCA spokesman told Gulf News yesterday.

ADFCA Communication and Community Service director Mohammad Jalal Al Reyaysa said this was the first time ADFCA had phased out a crop to save water.

Al Reyaysa said there were 16,000 rhodes grass farms in the emirate. However the exact area of land being cultivated with rhodes grass, and the amount of water which might be saved by the phase-out, was not readily available.

In lieu of rhodes grass, the authority said it would supply four other types of high quality animal feed, to be imported from various countries, the official said.

More than 65 percent of water is consumed by the agriculture and forestry sectors alone; in comparison 23 per cent consumed by the domestic sector, according to a report produced by the Environmental Agency – Abu Dhabi (EAD) in 2006, as Gulf News reported earlier.

“Unplanned and uncontrolled ground water withdrawals, especially in the agriculture and forestry sectors, now total over 2 billion cubic meters per year and have resulted in declining ground water levels and quality in many areas,” the 2006 report said.

With ground water is being pumped 24 times faster than the rate of natural replenishment and desalination being an unsustainable option, conservation is the only solution, officials said.

By Binsal Abdul Kader?Staff Reporter

© Gulf News 2010. All rights reserved.

News Link: http://www.zawya.com/Story.cfm/sidGN_23082010_240812/Abu%20Dhabi%20to%20save%20millions%20of%20cubic%20metres%20of%20water%20annually%20by%20banning%20Rhodes%20grass%20

Saturday, August 21, 2010

No shortage of Zamzam water
Posted by Zawya
Emirates 24|7
20 August 2010


Saudi Arabia has reassured Muslims worldwide that there will be no shortage of Zamzam water as more than two million pilgrims prepare to converge on Makkah, Islam's holiest shrine, local newspapers reported on Friday.

"The water level of the Zamzam Well at the Grand Mosque has increased," they quoted Yousif Al-Wabil, Assistant Deputy President for Affairs of the Grand Mosque, as saying.

"This has happened because many private wells dug by citizens are no longer draining water from the Zamzam Well."

Al-Wabil said the previous homeowners in Al-Shamyia neighborhood in the holy city had dug these wells in their houses and linked them to their water tanks.

"Muslims all over the world can be assured that there will not be a shortage of Zamzam water," he said as Makkah prepares to receive Moslem pilgrims for the annual Haj season, which is expected to start in late November.

He said all the distribution points in Makkah are provided with a sufficient quantity of Zamzam water, adding that the Prophet's Mosque in Madina will be provided with tankers of Zamzam water on a daily basis.

Al-Wabil rejected accusations that women are only given small areas to pray in the Grand Mosque.

He said that more than 50 per cent of the area on the first and second floors has been allocated for women.

"The presidency draws up its plans for the Umrah and Haj seasons several months beforehand, to ensure a high standard of services to worshippers....it mobilises more than 5,702 employees, supported by thousands of cleaners and maintenance workers, to serve and care for pilgrims around-the-clock."

He said the presidency, a government department in charge of the development of the two holy Moslem cities, also assigns scholars, who speak a variety of languages, to enlighten pilgrims and help them perform the rituals properly.

Al-Wabil said the presidency also allows Umrah pilgrims, visitors and worshippers to bring small amounts of dates and coffee into the Grand Mosque.

"But the mosque's police and the presidency's staff strictly monitor worshippers to make sure they do not bring large amounts of food with them."

About the phenomenon of the reservation of places at the Grand Mosque, he said this illegal activity becomes more prevalent in the last 10 days of Ramadan.

"Most of those who resort to this method are foreigners, who do so for purely financial gain..these people reserve places overlooking the Holy Ka'ba."

"Those who do so will be arrested. Many were arrested last Ramadan and referred to the responsible authorities for punishment." he said.

By Staff © Emirates 24|7 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100821051300/No%20shortage%20of%20Zamzam%20water
Arab wheat imports peak at over $10bn
Posted by Zawya
Emirates 24-7, 20 August 2010


Wheat imports by the Arab countries climbed to their highest level of more than $10 billion in 2008 and the bill is set to surge in the next years following Saudi Arabia's decision to stop local production, official figures have shown.

Despite a slight rise in wheat production in the region, the wheat import bill hit an all time high of nearly $10.5 billion in 2008, showed the figures by the Khartoum-based Arab Organization for Agricultural Development (AOAD).

The Arab League's institution gave no figures for 2009 but said imports could have climbed further because of a relatively high growth in the Arab population, exceeding two per cent annually over the past two decades.

Wheat exports by the League's 21 members remained as low as $279 million in 2008, creating a massive deficit in the trade of this essential commodity.

The figures showed the deficit stood at a record high of around $10.26 billion, which accounted for nearly 33 per cent of the total Arab food gap of about $29.8 billion in 2008. All other food products suffered from a deficit during that year except vegetables, which recorded a surplus of about $876 million.

A breakdown showed the deficit stood at around $3.44 billion in corn, $2.3 billion in barley, $2.16 billion in rice, $3.09 billion in meat, $2.7 billion in sugar, $2.5 billion in cooking oil and fat, and 4.4 billion in dairy.

The report showed Saudi Arabia reeled under the highest deficit in its farming trade given its large food imports and low exports.

Its food export stood at only around $2.49 billion while imports were estimated at nearly $16.6 billion, the highest in the Arab region and nearly a third of the total Arab food imports.

Experts expect Saudi Arabia's food import bill to swell further in the next years as the world's dominant oil power is pushing ahead with plans to halt local wheat production and rely only on imports to save its water wealth.

The desert Gulf Kingdom, which sits atop more than a fifth of the world's proven oil wealth, had produced nearly three million tonnes of wheat per year to meet domestic needs but output is expected to plunge to one million tonnes this year following the government's decision to stop subsidising local production.

In the next two years, output could dip further and the country will become almost totally reliant on imports, mainly from the West.

Officials said early this year said Saudi Arabia, one of the poorest nations in water resources, imported in excess of one million tonnes of wheat in 2009 and imports are projected to surge this year as local output is steadily declining.

Saudi Arabia, with a population of around 27.1 million, has announced that it would begin importing wheat from global markets at the start of 2009 and gradually eliminate a 25-year grain programme that has allowed it to be self sufficient but drained its scarce desert water wealth.

The decision involved a gradual increase in wheat imports and a reduction in the government's purchases from local farmers by 12.5 per cent a year to conserve water following reports about an alarming decline in underground resources.

The figures showed Egypt, the most populous Arab nation, was the second largest food importer despite its massive farm potential. Its food imports stood at around $7.4 billion in 2008 while exports were put at $2.3 billion.

Algeria came third in terms of food imports, which were estimated at nearly $7.1 billion, far higher than its food exports of around $124 million.

The UAE recorded the fourth largest food import bill in the region despite its relatively small population. Its food exports were valued at around $3.6 billion while exports stood at $952 million, leaving a deficit of $2.6 billion.

Analysts attributed the high value of the UAE's food imports to the fact that a large part of them are re-exported to neighbouring markets, mainly through Dubai.

In an earlier study, AOAD said heavy reliance on imports along with poor investments and low land utilisation have boosted the cumulative Arab food imports bill to more than $180 billion over the past decade.

According to the report, the Arab population was estimated at nearly 351 million at the end of 2009 and it has been growing faster than most other nations, at around 2.34 per cent annually since 1990 against a global rate of 1.16 per cent.

"The high population growth in the region is one of the major factors for the persistent deficit in the Arab food balance....other factors include low investments by the public and private sectors, defective government policies, poor water resources, inefficient use of available land and water resources, and the low level of utilisation of available cultivated areas," it said.

"The biggest obstacle has been and will remain the relatively small water resources available in the region. This obstacle has blocked investment in the farming sector and will hinder any programme aimed at exploiting those areas."

AOAD reported last month that Arab countries are mulling an ambitious $65 billion strategy for the next 20 years to boost farm production and cut imports.

The strategy includes three phases, the first of which is a five-year plan during 2010-2015. The second stage will cover the 2010-2020 period and the third one stretches until 2030, when most farm products will nearly double.

AOAD said investments by the public and private sector would have three main targets, including improvement of productivity, expansion of cultivated land by developing water resources, and establishment of joint farming ventures.

"The arable land is expected to be expanded by around 2.9 million hectares by 2030....the main aim is to increase wheat production by 81.3 per cent, rice by 56.5 per cent, barley by 81.2 per cent and sugar crops by 69.3 per cent.....this will largely boost the rate of self sufficiency in these products and at the same time create nearly 8.7 million new jobs," AOAD said.

By Nadim Kawach

© Emirates 24|7 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100821051914/Arab%20wheat%20imports%20peak%20at%20over%20%2410bn
Govt urged to intervene as mutton prices go up again
Posted by Zawya
Khaleej Times
20 August 2010


JEDDAH: Consumers are turning to beef and camel meat as the price of mutton continues to soar.

According to sources at the Jeddah sheep market, sheep prices have shot up by as much as 40 percent during the holy month of Ramadan.

Several factors have been attributed to this, including the huge increase in prices of fodder and a hike in import charges. Moreover, demand is by far outstripping supply. Two workers at the market, Bashir Saud and Saleh Rabie, told Arab News that there has been an increase in the prices of all types of sheep meat.

"The prices of sheep range between SR850 and SR1,100 during Ramadan," said Saud.

"This is compared to a maximum of SR900 before the holy month. We expect the prices to increase further over Ramadan and the Eid Al-Fitr holiday due to higher demand and lower supply."

The grim market situation has forced several Saudis to abandon some of their favorite mutton dishes and turn to camel meat and beef.

Mishaal Al-Baqami says he only pays as much as SR600 to buy 15 kilograms of camel meat, as opposed to paying more than SR1,000 for a head of sheep weighing the same.

"I am very happy that camel meat, which has a higher protein content and is lower in calories, is now much cheaper. I also see this as a good opportunity to deal a severe blow to greedy traders at the sheep market," he said.

Muhammad Nafie, another citizen, slammed the price rise.

"This is simply exploitation by traders and sheep farmers. The authorities should intervene to rein in such an unjustifiable hike in prices," he said.

Echoing his sentiments, fellow Saudi Majed Al-Shahri said that this unjust price rise affects mainly those on limited incomes.

Saeed Al-Johani and Abdullah Al-Zahrani, regular customers of the sheep market, expressed their unhappiness over the huge increase in prices.

"It was an immense surprise for us to learn that price of a lamb shot up to more than SR900 when we visited the market the other day in Ramadan," Al-Johani said.

Salem Al-Hobaishi claims livestock traders are fixing prices to compensate for earlier losses sustained due to an increase in the prices of fodder and barley.

A trader at Jeddah sheep market, Musallat Al-Baqami, hit back at the claims, saying the imbalance in supply and demand was to blame.

"The market has been witnessing such a huge shortage in lamb for the first time, and this resulted in prices increasing by over 25 percent," he said.

"Prices are being fixed in accordance with the actual cost of importing livestock. Moreover, there has been an increase of 20 percent in cargo charges. Therefore, it is quite natural that this would have a knock-on effect on consumers. Sheep farmers have also suffered due to a recent price hike on livestock."

He added that the profit margin on mutton is lower than ever for traders.

© Khaleej Times 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100820053528/KSA%3A%20Govt%20urged%20to%20intervene%20as%20mutton%20prices%20go%20up%20again

Wednesday, August 18, 2010

Egypt completes canal project to turn desert into farmland
The Saudi Gazette
18 August 2010


ALEXANDRIA - An ambitious $100 million canal project to bring water from the Nile river to the Toshka desert in Egypt to convert arid regions into farmland and boost animal production has been completed.

The Sheikh Zayed Canal project, funded by the Abu Dhabi government, is part of a bigger human settlement plan that aims to construct all modern civic amenities in the desert. The grant was mainly used in the construction of the canal, three irrigation stations and development of farmland.

Toshka is home to the aromatic Al-Ghabeera plant, widely found in the area, and lies 225 km south of Aswan. Toshka has never been exposed to pesticides or chemicals, which ensures production of safe crops conforming to world standards, the water resources and irrigation ministry said.

The canal has a capacity to irrigate about 100,000 acres within the integrated irrigation system envisaged for the development of the southern valley covering over 24 km.

Farms, irrigation and road network, agricultural facilities and buildings, laboratories, factories and other amenities will be built. The water pumping stations are currently making a test run, said Mahmoud Mohamadayn, chairman of the board of directors of Egyptian-Saudi Real Estate Development.

© The Saudi Gazette 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100818044333/Egypt%20completes%20cana
Iraq not concerned with int'l wheat crisis - ministry
Posted by Zawya
Aswat Aliraq
16 August 2010


BAGHDAD - Iraq is not concerned with the international wheat crisis, the Iraqi Trade Ministry said on Monday.

"Iraq has stored enough wheat to cover the ration card system until the end of this year," the ministry said in a release on Monday as received by Aswat al-Iraq news agency.

It explained that the ministry in this regard has a policy on importation that adopts multiple sources and countries of origin.

"Dispatches of wheat are on the way to Iraq from Canada, the U.S., and Australia," the ministry added.

© Aswat Aliraq 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100817065604/Iraq%20not%20concerned%20with%20int%27l%20wheat%20crisis%20%2D%20ministry

Tuesday, August 17, 2010

Kingdom’s state wheat importer in no rush to buy
Posted by Arab News
By SOUHAIL KARAM | REUTERS
Published: Aug 8, 2010 22:52 Updated: Aug 8, 2010 22:52


RIYADH: The Saudi grains authority said on Sunday world wheat prices are expected to retreat further but not to the lows seen earlier in 2010 and that it can wait five months before issuing its next hard wheat tender.

Wheat prices in both the United States and Europe retreated on Friday but held just below two-year highs as markets reacted to the sudden imposition of a ban on grain exports from drought-hit Russia.

Waleed Elkhereiji, director general of Saudi Arabia’s state-run Grain Silos and Flour Mills Organization (GSFMO), also said the Kingdom’s domestic harvest of hard wheat stood at 1.1 million tons this year, 16 percent above the 950,000 tons produced last year.

“A drop in input costs, seeds and agricultural equipment, has encouraged planting and led to a higher harvest,” Elkhereiji told Reuters in an interview at GSFMO’s headquarters in Riyadh.

GSFMO has enough hard wheat stocks to cover the Kingdom’s needs until April, without taking into account its 990,000 tons hard wheat purchased in June and additional stocks of 90,000 tons of flour, he said.

“We are also taking delivery of the local hard wheat harvest: We have so far received 900,000 tons and there is an additional 200,000 tons expected to be delivered by end-September. We have a comfortable level of stocks,” he said.

The authority will still need to import 2 million tons of hard wheat before the start of the next harvest in the Kingdom. “It’s the same quantity imported this year.”

Elkhereiji also revealed that GSFMO will start importing soft wheat for the first time. “Some food industries need it so we are going to import it. If it is not in our next tender it will be the one after it, in 2011. We have already started adapting our mills to be able to process soft wheat.”

He declined to elaborate, saying the soft wheat imports have yet to be determined.

Asked about the potential size of GSFMO’s upcoming hard wheat tender, Elkhereiji said: “Current level of prices does not encourage buyers to enter the market with large quantities.”

“The pre-emptive planning we have gives us five months before issuing the next tender... Prices will decline but they will not return to the lows we have seen earlier this year,” he said.

The price spike after Russia announced its export ban was such that GSFMO would have paid an extra $80 million for its latest hard wheat purchase. “We worked hard and luck was on our side,” said Elkhereiji.

“Russia accounts for 10 percent of the world’s wheat trade and the drought that has affected it has not spared some other European producers. Still Canada, the United States, China, India and Pakistan are doing well.

“I don’t foresee a crisis, or a crisis similar to what happened in 2007 and the prices now are still below their level in 2007.”

He noted Saudi Arabia has not imported Russian wheat since 2008.

Since 2008 the Kingdom has sought to save water by reducing the amount of wheat they buy from local farmers by 12.5 percent a year, abandoning a 30-year wheat cultivation plan that had helped the country cover its domestic needs.

The policy has turned GSFMO into one of the biggest new buyers in the international grains market. GSFMO will sign on Tuesday agreements to expand its silos and milling capacity as it readies for an increase in imports.

It will award the Swiss Buhler AG two contracts worth SR368 million ($98 million) to build a 1,200 tons per day flour mill in Makkah and to expand by 67 percent mill capacity in Jeddah to 450 tons per day.

Local firm Haif Company will be awarded a 506 million riyals contract to build grain silos in Makkah with a 250,000 tonnes capacity.

News Link: http://arabnews.com/economy/article97917.ece

Monday, August 16, 2010

UPDATE: UAE Not Affected By Russian Wheat Export Ban -Official
Posted by Zawya
Zawya Dow Jones News
Monday, Aug 16, 2010


DUBAI (Zawya Dow Jones)--A Russian ban on wheat exports has not affected food prices in the United Arab Emirates, the Arab world's second largest economy, where there are no concerns of a supply shortage, an economy ministry official said Monday.

"There is no shortage of any kind," Hashem Al Nuaimi, director of customer protection at the ministry of economy told Zawya Dow Jones while touring Dubai's central fruit and vegetables market.

"There are alternatives," Al Nuaimi said, adding that commercial buyers chose from alternatives to Russian wheat as they saw fit.

Russia, a major wheat supplier, decided to ban wheat exports from Aug. 15 until the end of the year in response to a severe drought and wildfires that have devastated its harvest. The decision has sent global wheat prices soaring and stoked fears of shortages.

"The price of flour [in the U.A.E.] hasn't changed," Al Nuaimi said Monday. "We can assure consumers that there's been no effect."

The oil-rich Gulf countries import an estimated 85% to 90% of all basic food goods, according to a recent report by the Arab Organization for Agricultural Development.

Egypt--the world's top importer and a major customer of Russia's--said last week that the recent rise in wheat prices could cost it an additional four billion Egyptian pounds, or about $705 million.

RAMADAN PRICES

Al Nuaimi Monday toured the fruit and vegetable market in Al Aweer, a suburb of Dubai, and a nearby co-operative supermarket to check price increases and assure consumers with the onset of Ramadan.

During Ramadan, the Muslim holy month of fasting which began last week, families increase their food purchases by upward of 25%. The anticipated surge in demand sends food prices higher during the month.

"We monitor these prices to make sure any increase is justifiable," Al Nuaimi said.

"I haven't really seen a change compared to last year," said one shopper. "The price of some vegetables has gone up by maybe 5%, but that's normal for Ramadan."

-By Nour Malas, Dow Jones Newswires; +9715 0 2890223, nour.malas@dowjones.com

(Liam Pleven and Patrick Barta of The Wall Street Journal contributed to this article.)

Copyright (c) 2010 Dow Jones & Co.

(END) Dow Jones Newswires

16-08-10 0943GMT

News Link: http://www.zawya.com/Story.cfm/sidZW20100816000045/UAE%20Not%20Affected%20By%20Russian%20Wheat%20Export%20Ban%20%2DOfficial
UAE: Soaring livestock prices fail to deter meat lovers
Posted by Zawya
Khaleej Times
16 August 2010


RAS AL KHAIMAH -- Despite an increase in animal prices since last week, the Ras Al Khaimah livestock market has been witnessing a heavy rush of meat lovers.

Traders said that for the past few days, scores of people from all over the emirate had been visiting the Ras Al Khaimah livestock market to buy animals.

Noordin Ali, a Pakistani trader in the RAK livestock market said there had been a high demand for sheep in recent days as many people buy and stock animals for the holy month of Ramadan.

"Many people, especially Emiratis with big families, want to buy sheep or goats for Iftar meals early to avoid commission in the market," he added.

Ali noted that during the past few days, many of his Emirati customers had been buying six to 10 sheep, the meat of which could last through Ramadan."An increase in animal prices has not affected our business. Many people are buying animals in big numbers to keep them for Ramadan," said Ali.

Abdullah Al Shihi, a livestock trader in the RAK market said that the prices of sheep and goats went very high from last week. "Iranian sheep is now priced at Dh600, up from Dh400-450 last month, and Somali and Omani sheep now cost Dh550-650, up from Dh400. The price of Pakistani and Indian sheep has also gone up from Dh350 to Dh450-650. Local sheep and goats are the most highly priced in the markets with a record cost varying from Dh850 to Dh1,300.The price of goats of different origins has also increased by Dh100-200 depending on the size.

Mohsin Khan, a livestock dealer attributed the hike in animal prices to the increase in procuring costs on the side of the importers.

He said the prices of livestock tend to increase in different countries during the advent of Ramadan or the festive days because of the high demand. "The significant reduction in the importation of Somali sheep in the recent months also caused some shortage in the markets," said Abdul Karim, another livestock dealer.

Mohammed Hassan, a Pakistani trader of sheep in the RAK market said 40 to 50 trucks full of livestock are entering the market everyday but most of these are sold out even before they are off-loaded. "Some traders from Dubai and Abu Dhabi come and buy animals from importers at the RAK livestock market during this season since the prices here are lower compared to other markets," added Hassan. Meanwhile, veterinary experts from Ras al Khaimah Municipality are conducting daily inspections in the livestock market to ensure that all animals being sold to customers are healthy and free from diseases.

According to municipal officials, the inspections are intended to safeguard the residents' health and would continue throughout Ramadan.

By Sebugwaawo Ismail

© Khaleej Times 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100816040430/UAE%3A%20Soaring%20livestock%20prices%20fail%20to%20deter%20meat%20lovers

Sunday, August 15, 2010

Russian grain export ban comes into force
Posted by Zawya
AFP
By Stuart Williams


MOSCOW, Aug 15, 2010 (AFP) - A ban on Russian grain exports ordered by Prime Minister Vladimir Putin came into force on Sunday, with the government battling to keep down prices of basic foodstuffs amid a record drought.

According to a government decree signed by Putin on August 5, the ban will extend from August 15 up until December 31, although the powerful premier has indicated it may even extend beyond that date if the harvest is bad.

Russia, the world's number three wheat exporter last year, has already warned that its grain harvest this year will be just 60-65 million tonnes, compared to 97 million tonnes in 2009.

The drought amid the worst ever heatwave in Russia's history has ruined one quarter of the country's crops, according to President Dmitry Medvedev.

The export ban is aimed at keeping the Russian domestic market well supplied with grain to prevent sharp rises in prices. Russia's leaders, acutely nervous of social unrest, will be keen to avoid any discontent over food prices.

"We must not allow an increase in domestic prices and must preserve the headcount of our cattle," Putin said bluntly as he announced the ban.

Last year, Russia exported 21.4 million tonnes of grain and had even embarked on a major new campaign to boost its international market share, an ambition that now must be set aside for some time.

Russia requires 78 million tonnes of grain domestically and can cover the shortfall with 9.5 million tonnes from a state fund and 21 million tonnes left over from last year's harvest, the government has said.

Medvedev acknowledged last week that both market participants and ordinary people were worried about "how this extraordinarily hard summer would affect the prices of the most basic foodstuffs."

He vowed the authorities would not allow grain prices to rise and would keep a close eye on costs for food products such as flour, bread, meat and milk.

The export ban from such a key global player stung world wheat markets, sending prices to two-year highs and sparking worries of a crisis in global food supplies.

Putin has shrugged off the controversy, warning that the ban could even be extended. "There is no need to count on a quick removal of the export ban," he said, adding that anyone waiting for December 31 was doing so "in vain".

There has been criticism of the ban even within Russia, with some players saying it will take the country years to regain its international market position and risks driving domestic grain producers out of business.

In contrast to the tough talk of the prime minister, Medvedev admitted that producers had been put in a difficult position. He said they should be helped so they can prove they had no option but to comply with the ban, allowing them to claim 'force majeure' when they fail to meet contracts.

"We have put producers involved in exports into a difficult position," he said. "Having done this, we must help them have the legal proof that (there) was a force majeure and it was not possible to fulfil deliveries."

sjw/as/ss

© Copyright AFP 2010.


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Saturday, August 14, 2010

Saudi Arabia: Date farmers complain of low prices
Posted by Zawya
The Saudi Gazette
12 August 2010


BURAIDAH - By the beginning of Ramadan overall sales at the Buraidah International Dates Festival increased to between SR20 million to SR25 million, despite a decline in date prices, according to a report published in Al-Watan newspaper Wednesday.

However, not everyone was happy. The lower prices of dates caused problems between auctioneers and buyers. Some farmers refused to sell their produce to buyers who won bids at the auction because they did not like the price offered.

Auctioneer Abu Ali said some farmers took their produce and left the market and came back the following day if they did not like the prices offered at the auction.

By Tuesday morning, the last day before Ramadan, most farmers were not satisfied with the prices.

This was worsened by the increase in the prices of packaging. However, auctioneers demanded planters produce more and said there was a only a "little" supply.

© The Saudi Gazette 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100812044017/
Saudi Arabia: Date farmers complain of low prices
Posted by Zawya
The Saudi Gazette
12 August 2010


BURAIDAH - By the beginning of Ramadan overall sales at the Buraidah International Dates Festival increased to between SR20 million to SR25 million, despite a decline in date prices, according to a report published in Al-Watan newspaper Wednesday.

However, not everyone was happy. The lower prices of dates caused problems between auctioneers and buyers. Some farmers refused to sell their produce to buyers who won bids at the auction because they did not like the price offered.

Auctioneer Abu Ali said some farmers took their produce and left the market and came back the following day if they did not like the prices offered at the auction.

By Tuesday morning, the last day before Ramadan, most farmers were not satisfied with the prices.

This was worsened by the increase in the prices of packaging. However, auctioneers demanded planters produce more and said there was a only a "little" supply.

© The Saudi Gazette 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100812044017/
Import ban dries up vegetable supply
Posted by Zawya
Friday, Aug 13, 2010
Gulf News

Leafy greens have disappeared from stores

Dubai The prices of certain types of vegetables have rocketed following an import ban when some produce was found to contain unacceptable levels of insecticide, according to local supermarkets.

Greens like parsley, rocca, coriander, and mint have either disappeared from stores or become expensive. These simple leaves are often main ingredients in favourite dishes including taboulah, fatoosh, stuffed vegetables, fish garnishing, and soups that are particularly popular in Ramadan.

“Go to the vegetable market, you’ll see the price increase, this is a reality,” said Dr Hashim Saeed Al Nuaimi, Manager of the Consumer Protection Department at the Ministry of Economy.

The shortage and price spike came after an import ban on these greens from Oman and Jordan when they were found to contain levels of insecticide higher than those approved by the Ministry of Environment, according to V. Nandakumar, Manager of Corporate Communication at Lulu Hypermarket.

“There is a blockage at the Oman border. There is an issue with importing mint and parsley,” he said.

The hypermarket had to find alternative markets to import its daily fare of greens.

Alternative sources

“We are still selling all leafy vegetables for 95 fils a bundle,” he said. “We found alternative sources, we’re now importing from Egypt.”

A small grocery in Al Nahda in Dubai said the greens were hard to come by these days.

“It’s not available in the market for a few days, it comes from outside the country,” said the seller, who declined to be named.

Al Nuaimi told Gulf News the shortages were due to delays as the import countries have asked their main importers and farmers to provide a health certificate before selling their produce abroad.

“This takes time, so there’s a shortage,” he said. “We expect it to be resolved in a few days.”

To address general price hikes and monopolisation in Ramadan, the Sharjah Economic Development DepartmentSharjah Economic Development Department
Sharjah Economic Development Department
SEDD met with representatives of the Ministry of Economy and some foodstuff dealers on Tuesday. They plan to conduct regular inspections visits to markets during Ramadan, the SEDD said in a statement.

Although salaries in the UAE have not increased lately and credit is harder to come by, food is “always on top of the consumer spending priorities,” said Dr Armen V. Papazian, a financial economist and Chief Executive Officer of Keipr, a boutique consultancy that specialises in business analytics and intelligence.

“Taking into consideration the fact that we are now in the holy month of Ramadan, where social and economic life converges around Iftar, we can also expect short term price hikes.”

Food inflation is to be expected with a reliance on imports, he noted.

“External supply shocks and weather conditions have recently led to price increases in a range of foodstuffs. The recent Russian export ban on wheat is an example,” he said.

“The UAE consumer is faced with other issues as well. The region has one of the highest population growth rates, it imports most of its food, and has a water supply issue that constrains domestic agricultural supply growth. Thus, fundamentally, food inflation is expected,” he added.

Avoid hoarding

SEDD urged sellers to avoid hoarding products so that prices can remain stable during the holy month. This is in accordance with article No. 14 of the Federal Consumer Protection Law No. 24 of 2006 and executive regulations, which states that supplies are not allowed to hide any commodities with the purpose of controlling and increasing prices.

While consumers bear the effect of high prices and product monopolisation, they also have to take their own measures according to the SEDD.

“The role of the consumer is to be aware and not to buy commodities in excess during Ramadan, therefore the demand will not rise, and consequently prices will not increase,” it said.

To protect their rights, customers are advised to ask for a dated receipt containing details of all the items purchased in every transaction, SEDD added.

External supply shocks and weather conditions have recently led to price increases in a range of foodstuffs. The recent Russian export ban on wheat is an example.”

Dr Armen V. Papazian

Financial economist and Chief Executive Officer of Keipr

By Deena Kamel Yousef?Staff Reporter

© Gulf News 2010. All rights reserved.

News Link: http://www.zawya.com/Story.cfm/sidGN_12082010_130805/UAE%3A%20Import%20ban%20dries%20up%20vegetable%20supply
Jordan: Gov't buys 100,000 tonnes of wheat to shore up supply
Posted by Zawya
Jordan Times
13 August 2010


AMMAN - Jordan on Thursday purchased 100,000 tonnes of wheat from Germany at a cost of $328 per tonne, Minister of Industry and Trade Amer Hadidi said.

Reiterating that the Kingdom's stored quantities of wheat are enough for six months, the minister indicated that the new order will cover the country's needs for another two months and that the government will continue importing wheat to increase the country's reserves in accordance with storage capacity.

"Despite the rise in international wheat prices, which will increase the cost of the government bread subsidy, we will continue supporting bread with the same mechanism," Hadidi told reporters on Thursday, noting that the last order of wheat the ministry purchased was priced at $297 per tonne.

Finance Minister Mohammad Abu Hammour said in previous remarks to The Jordan Times that the rise in wheat prices is expected to cost the treasury an additional JD45 million, to be added to the current wheat bill of around JD150 million.

According to the Food and Agriculture Organisation, international wheat prices have jumped by over 50 per cent since June.

This rapid increase, caused by a drought affecting crops in the Russian Federation, coupled with lower than anticipated outputs in Kazakhstan and Ukraine, is prompting concerns about a repeat of the world food crisis of 2007 and 2008.

President of the Bakery Owners Association Abdul Ilah Hamawi said that absent the government subsidy, bread prices would be three times higher.

The government subsidises each tonne of flour with JD181 and due to this support, the cost to bakeries is only JD77 per tonne, Hamawi explained.

Current prices of bread are JD0.16 per kilogramme, whereas if the product were not subsidised by the government, the price of each kilo of bread would stand between JD0.45 and JD0.50.

By Omar Obeidat

© Jordan Times 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100813053223/Jordan%3A%20Gov%27t%20buys%20100%2C000%20tonnes%20of%20wheat%20to%20shore%20up%20supply

Wednesday, August 11, 2010

Low Arab water wealth blocks bid to ease poverty
Posted by Zawya
Emirates 24-7, 11 August 2010


Rapid population growth has sharply depressed renewable water resources in most Arab countries over the past 50 years and this has obstructed efforts to tackle festering poverty, according to the United Nations.

Since 1960, the population of the Arab members of the UN Economic and Social Commission on West Asia (ESCWA) has grown by around 2.4 per cent, nearly double the world average, the Group said in a study.

It put the combined population of its 14 member states at around 227 million in 2010 and projected the figure to climb above 300 million in 2025.

In contrast, renewable water resources plummeted from a record 3,200 cubic metres per person in 1060 to only around 1,000 cubic metres per person in 2008, the Beirut-based organization said without giving data for the following years.

"Scarce water resources are one of the defining features of the ESCWA region. The high population growth rates have reduced the per capita supply of freshwater in every ESCWA country, hindering efforts aimed at alleviating poverty and promoting sustainable development," it said.

"The emerging change in climatic conditions places additional stress on limited resources. As conventional water resources have became insufficient to meet demand, ESCWA countries have increasingly turned to non-conventional water resources to fill the gap. Non-conventional water resources in ESCWA countries consist primarily of desalinated water and the use of treated wastewater."

The report estimated the total desalination production capacity in ESCWA, mostly in the six-nation Gulf Cooperation Council (GCC), at around 26.9 million cubic metres per day but noted such projects are draining the coffers of their governments given the high costs of production and maintenance.

Poor water resources in the Arab world have been cited among the main factors for the low farm productivity and soaring food imports. This allied with slow growth in food exports to largely widen the region's farm gap.

According to the Khartoum-based Arab Organization for Agricultural Development(AOAD), a key Arab League establishment, regional nations have reeled under a cumulative food gap of more than $180 billion over the past 10 years to emerge as the largest single farm importer in the world.

The farm gap, the difference between imports and exports of food products, peaked at around $29.8 billion in 2008 due to a surge in global food prices before it edged down to nearly $27.5 billion in 2009.

The level is nearly quadruple the cumulative gap of around $45 billion during the preceding nine years, when the region's population did not exceed 240 million in early 1990s compared with around 334 million in mid 2008. At the end of 2009, the total Arab population was projected at around 351 million.

AOAD blamed poor water resources in the region, low land utilization and investments, and what it described as defective Arab farm policies.

Nearly three years after they approved a 15-year common farm strategy in 2005, the Arab countries have become more reliant on farm imports as such a strategy remains inefficient in the absence of right policies and sufficient funds, it said.

"There are several obstacles and challenges facing the development of the Arab farming sector...they include low investments, defective government policies, poor water resources, inefficient use of available land and water wealth, and the low level of utilization of cultivated areas," it said.

"The biggest obstacle has been and will remain the relatively small water resources available in the region. This obstacle has blocked investment in the farming sector and will hinder any programme aimed at exploiting those areas."

The report said the Arab world is one of the poorest areas in the world in terms of water wealth, with the quantities of available renewable water resources standing at only around 1.3 per cent of the world's total renewable water wealth although the Arab region accounts for more than 10 per cent of the total world land area.

"The Arab region is considered one of the most arid areas in the world and the per capita share of the water wealth is among the lowest as it has remained much below the global water poverty level of 1,000 cubic metres per year...in some countries, this level is even below 500 cubic metres," the report said.

"As for arable land, it is estimated at nearly 550 million hectares but only around 12 per cent is exploited...even in that 12 per cent part, the farming efficiency does not exceed 60 per cent of the world level...this means the Arab world is facing a real problem of not only low exploitation of arable areas but low efficiency in the cultivated land and its productivity."

In a report last week, AOAD said regional nations are considering launching an ambitious strategy involving investment of nearly $65 billion in the next 20 years to expand their farming sector and ensure food for their fast growing population.

It said the three-stage plan includes sharply increasing the production of wheat and other key products by expanding cultivated areas and irrigation systems.

By Nadim Kawach

© Emirates 24|7 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100811050047/Low%20Arab%20water%20wealth%20blocks%20bid%20to%20ease%20poverty
New irrigation methods to reduce water usage by 40% in 5 years
Posted by Zawya
Khaleej Times
11 August 2010


DUBAI -- An irrigation demonstration farm in Seih Al Kheir, a first of its kind, was inaugurated on Tuesday in the presence of Rashed Mohamed Al Shariqi, Chairman of Abu Dhabi Farmers' Services Centre and Director General of Abu Dhabi Food Control Authority, and a number of agricultural experts, farmers and farm owners from the
Western Region.

The farm was set up by the Abu Dhabi's Farmers' Services Centre (FSC) to help farmers in the UAE achieve higher productivity and better quality of crops as well as to reduce the use of natural resources through demonstration of modern irrigation technology.

Shariqi said the transition to the new system would reduce water usage for farming by 40 per cent in the
next five years.

"The irrigation demonstration farm will guide and encourage the region's farmers to adopt modern and efficient systems that reduce the use of water and increase agricultural productivity," Shariqi said.

"I call upon our brothers in the farming sector to cooperate with the efforts of the government which are aimed at preserving the nation's resources and improving the people's quality of life," he said.

According to Mubarak Ali Al Qusaili Al Mansouri, Executive Director of Agriculture, ADFCA and Governing Board Member, Farmers' Services Centre, the demonstration farm was modelled on the size and design of regional farms and makes it convenient for farmers to implement the system
in their own farms.

"Given the amount of water wasted in traditional farming practices, the new system promises unprecedented gains for the farmers, including higher productivity and ease and
efficiency of operations.

Current irrigation practices are not sustainable and have a detrimental effect on the natural environment. Up to 60 per cent of water applied on farms in Abu Dhabi's Seih Al Kheir area is wasted by current irrigation
practices," he said.

A plan for eight more irrigation demonstration sites in Abu Dhabi's Western Region has been set for the coming year.


© Khaleej Times 2010

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Egypt and US unite to protect Afghan wheat, as Egyptians fear wheat crisis at home
Posted by Zawya
Daily News Egypt
11 August 2010


CAIRO: Afghanistan's entire wheat crop may be at risk of devastation from a wheat rust disease called Ug-99, which originated in Uganda in 1999, said Egyptian and US officials at a press conference held Tuesday at the Ministry of Agriculture.

The disease, which can devastate entire crops within days and has already spread through parts Africa and Asia including Afghan-bordering Iran, will be fought in Afghanistan through the dissemination of Misr-1, a recently developed variety of disease resistant wheat, the US Department of State said in a statement.

The new strand was created through a joint effort between Egypt's Agricultural Research Center (ARC), the United States Department of Agriculture, as well as the Bill and Malinda Gates Foundation, amongst others, United States Ambassador to Egypt, Margaret Scobey explained to members of the press.

The US State Department highlighted the gravity of the issue by explaining that Ug-99 has the potential to eviscerate 70 to a full 100 percent of Afghanistan's annual wheat crop without the introduction of Misr-1.

Wheat represents "between 2.1 and 2.5 million hectares, or approximately 60 percent of all cropland in Afghanistan," and constitutes 70 percent of the Afghan's annual caloric intake.

Agriculture is a crucial element of the Afghan economy, as it provides its citizens with 85 percent of their food and wages, the statement highlighted.

With the support the of the United States, which will provide transportation of the new wheat seeds to Afghanistan, and pay for the cost of the seed, Egypt will initially provide 150 tons of wheat for delivery, which will be multiplied through 2010/11 to 3,000 tons in all, the US Department of State said.

The initial delivery will ensure that 65 percent of its rust-resistant seed stocks for the 2010 planting season, which will increase the following year by five to six times, the statement explained.

Scobey stated that through this international effort, Afghan farmers' livelihoods and food supply would be protected.

She congratulated Egypt on being one of the first countries in the world to have created a resistant wheat variety to counteract the new, potentially devastating disease.

Scobey explained that Egypt was selected to collaborate on the US' efforts to aid Afghan farmers due to Egypt's expertise and the advances the ARC had made in developing disease resistant wheat seed.

Minister of Agriculture Amin Abaza was optimistic that the new Egyptian variety would be successful in protecting future Afghan crops, as it had already been tested with success in Afghanistan in November 2009, as well as in Ethiopia and Kenya, two countries which have been hit by the deadly disease.

The notion that Egypt, one of the world's biggest wheat importers, would be providing wheat to a foreign country struck some members of the audience as odd if not irrational at a time when speculation is swirling that Egypt may be struck by a serious shortage of wheat due to the fires the have engulfed parts of Russia - one of Egypt's main wheat exporters - that have ravaged wheat crops this past week, which has forced the country to temporarily ban wheat exports until the crisis has been contained.

In reaction to the news of the export ban, Trade and Industry Minister Rachid Mohamed Rachid said in a statement, "Egypt has a wheat supply to cover the production of subsidized bread for the upcoming four months."

Rachid said that the government acknowledges people's concerns especially as the Muslim holy month of Ramadan is set to begin on Aug. 11, when bread consumption traditionally increases.

Abaza reiterated Rachid's statements, adding that Egypt has undertaken a broad strategy over the years to increase self-sufficiency as well as productivity with regards to wheat production.

Further, he stated that Egyptian society must reduce loss of productivity and inefficiencies through the rational use of bread.

Abaza also highlighted that the Egyptian government recently struck a deal with France to import 250 tons of wheat to help stem the loss of wheat that was set to arrive from Russia.

Asked whether the United States would be willing to fill in the wheat export lacuna left by Russia due to its recent export ban, Scobey riposted that, in fact, the US had experienced a generous wheat crop year, and was, therefore, "open for business" if Egypt was so inclined.

It was also mentioned by Abaza that Egyptian companies should strongly consider establishing agricultural farms in Nile basin countries, such as Ethiopia, to help bolster shortcomings of national agricultural production, as these countries have vast lands to be exploited as well as sufficient sources of water to meet agricultural needs.

He added that this concept is currently being studied, but feasibility studies have varied thus far.

© Daily News Egypt 2010

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Tuesday, August 10, 2010

UAE not affected by Russian wheat ban
Posted by Zawya
Gulf News
Tuesday, Aug 10, 2010

no imports of grain from that country

Dubai The UAE is unlikely to be affected by the wheat export ban that Russia declared on Sunday after drought and wildfires triggered shortage fears.

Local traders said that while prices will fluctuate, supply will be unaffected as Russia does not export wheat to this country.

Kamal Vachani, director of Al Maya Supermarkets said the ban in Russia has “nothing to do with UAE” because wheat in the local market doesn’t come from Russia.

The wheat shortage threat comes less than a week before the beginning of Ramadan that usually drives up sales of foodstuffs. “Wheat was enjoying a comfortable supply-demand status from the start of the year, but fundamentals have taken a U-turn with the development of drought conditions in Russia and the export ban,” said Pradeep Unni, Senior Relationship Manager at Richcomm Global.

“GCC nations that depend a lot on imports to meet their food needs could see a shortfall in supply, but a massive rise in prices isn’t expected in the UAE as the nation does not completely depend on Russia for its import requirements.

“If other Black Sea producers, especially Kazakh-stan and Ukraine, ban their exports, a price rise could be inevitable as globally there could be a price spike due to this. This situation isn’t likely to last for long as other production centres are likely to catch up with the supply shortages,” Unni said.

Vachani said prices for wheat will be “much lower” especially during Ramadan, since retailers want customers to enjoy the month. “There is enough stock,” he said.

A spokesperson for Foodstuff Traders Group, a local wholesale trader, said the grain supply in the country will not be affected but prices surely b will be.

With the kind of speculation, it [price] is already up 30 per cent, if the situation escalates, it could rise another 30 per cent,” the spokesperson said.

He said the price fluctuation doesn’t have much to do with supply and demand, but more about news that can drive the price of any commodity higher.

“The government will need to [regulate], otherwise this kind of nonsense will continue,” he said.

The UAE’s wheat supply is sourced through various international markets such as Ukraine, Australia, Canada, Argentina, while Turkey and India supply wheat intermittently.

“The UAE never used to buy Russian wheat and it will be able to get it from the different countries although at a higher price,” the spokesperson said.

GCC nations that depend a lot on imports for meeting their food needs could see a shortfall in supply, but a massive rise in prices isn’t expected in the UAE as the nation does not completely depend on Russia for its import requirements.”

Pradeep Unni,

Senior relationship manager at Richcomm Global

By Nadia Saleem, Staff Reporter

© Gulf News 2010. All rights reserved.

News Link: http://www.zawya.com/Story.cfm/sidGN_09082010_100844/UAE%20not%20affected%20by%20Russian%20wheat%20ban

Monday, August 09, 2010

Saudi state wheat importer says it’s in no rush to buy
Posted by DailyStar.com
Monday, August 09, 2010
Souhail Karam
Reuters


RIYADH: The Saudi grains authority said on Sunday world wheat prices are expected to retreat further but not to the lows seen earlier in 2010 and that it can wait five months before issuing its next hard wheat tender.

Wheat prices in both the United States and Europe retreated on Friday but held just below two-year highs as markets reacted to the sudden imposition of a ban on grain exports from drought-hit Russia.

Waleed Elkhereiji, director general of Saudi Arabia’s state-run Grain Silos and Flour Mills Organization (GSFMO), also said the kingdom’s domestic harvest of hard wheat stood at 1.1 million tons this year, 16 percent above the 950,000 tons produced last year.

“A drop in input costs, seeds and agricultural equipment, has encouraged planting and led to a higher harvest,” Elkhereiji told Reuters in an interview at GSFMO’s headquarters in Riyadh.

GSFMO has enough hard wheat stocks to cover the kingdom’s needs until April, without taking into account its 990,000 tons hard wheat purchased in June and additional stocks of 90,000 tons of flour, he said.

“We are also taking delivery of the local hard wheat harvest: We have so far received 900,000 tons and there is an additional 200,000 tons expected to be delivered by end-September. We have a comfortable level of stocks,” he said.

The authority will still need to import 2 million tons of hard wheat before the start of the next harvest in the desert kingdom. “It’s the same quantity imported this year.”

Elkhereiji also revealed that GSFMO will start importing soft wheat for the first time. “Some food industries need it so we are going to import it. If it is not in our next tender it will be the one after it, in 2011. We have already started adapting our mills to be able to process soft wheat.”

He declined to elaborate, saying the soft wheat imports have yet to be determined.

Asked about the potential size of GSFMO’s upcoming hard wheat tender, Elkhereiji said: “Current level of prices does not encourage buyers to enter the market with large quantities.”

“The pre-emptive planning we have gives us five months before issuing the next tender … Prices will decline but they will not return to the lows we have seen earlier this year,” he said.

The price spike after Russia announced its export ban was such that GSFMO would have paid an extra $80 million for its latest hard wheat purchase. “We worked hard and luck was on our side,” said Elkhereiji.

“Russia accounts for 10 percent of the world’s wheat trade and the drought that has affected it has not spared some other European producers. Still Canada, the US, China, India and Pakistan are doing well.

“I don’t foresee a crisis, or a crisis similar to what happened in 2007 and the prices now are still below their level in 2007.”

He noted Saudi Arabia has not imported Russian wheat since 2008. Since 2008 the country has sought to save water by reducing the amount of wheat they buy from local farmers by 12.5 percent a year, abandoning a 30-year wheat cultivation plan that had helped the country cover its domestic needs.

The policy has turned GSFMO into one of the biggest new buyers in the international grains market. GSFMO will sign on Tuesday deals to expand its silos and milling capacity as it readies for an increase in imports.

It will award the Swiss Buhler AG two contracts worth 368 million riyals ($98 million) to build a 1,200 tons per day flour mill in Mecca and to expand by 67 percent mill capacity in Jeddah to 450 tons per day.

Local firm Haif Company will be awarded a 506 million riyals contract to build grain silos in Mecca with a 250,000 tons capacity.

News Link: http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=117963#axzz0w8gXnJVF

Sunday, August 08, 2010

Saudi Arabia: Inflating prices of essential goods 'haram,' scholars say
Posted by Zawya
Arab News
07 August 2010


JEDDAH: Most supermarkets and shops in the Kingdom increase prices of foodstuffs and other consumer goods before the holy month of Ramadan to make huge profits by exploiting the needs of people.

"This is prohibited in Islam," said Aabid Al-Sufyani, principal of the Shariah College in Najran, adding that traders should not exploit occasions such as Ramadan, Eid Al-Fitr or any other seasons to raise prices.

"Rising prices without any reason is an injustice and those who are guilty of that deserve tough punishment," the Islamic scholar said.

Al-Sufyani's opinion has been widely acclaimed by scholars as well as the general public inside and outside the Kingdom. He urged traders to fear God. "Traders should consider the interest of the public, inspired by the meaning of Islamic unity and solidarity."

He said traders who inflate prices of goods at certain times should be given deterrent punishment as their activities harm the general public, especially people on limited incomes.

A number of Al-Azhar scholars said they were in full agreement with Al-Sufyani and called for imposing stiff punishments on such traders.

Dr. Jouda Abdul Ghani Basyuni, principal of the Shariah College at Al-Azhar University, said raising prices of essential commodities during Ramadan and other seasons, without any valid reason, is prohibited in Islam and it contradicts Islamic teachings.

"It comes in the category of taking people's money through falsification," he said, adding that the Qur'an prohibits that.

"It has become a common practice that traders reach an agreement to increase prices during peak seasons to make profits. This is not allowed in Islam."

Muhammad Rafaat Othman, a member of the US-based Islamic Research Academy and Muslim Jurists' Council, said hoarding goods with the intention of increasing their prices in the market is "haram" or prohibited. "This is exploitation of people's need."

In his statement, Al-Sufyani urged traders to fear God and not cause any harm to the public by raising prices. He also advised the public to use the holy month to engage in worship instead of wasting their precious time in unnecessary shopping, giving traders an opportunity to exploit them.

Meanwhile, sources at the Ministry of Commerce and Industry said its inspectors had observed considerable increases in prices of several products just before Ramadan, including prices of food products.

Inspectors also noticed that a single product is sold for different prices at different sales outlets because of the Kingdom's free economic policy.

Arab News toured a number of shops and supermarkets in Jeddah and found 8 to 30 percent increases in prices of foodstuffs.

Shoppers said any increase in prices would aggravate their problems, especially during Ramadan when expenses peak, as they are already bearing the brunt due to inflation and the recent hike in rent prices.

© Arab News 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100808051646/Saudi%20Arabia%3A%20Inflating%20prices%20of%20essential%20goods%20%27haram%2C%27%20scholars%20say

Saturday, August 07, 2010

Saudi Arabia: Mayoralty urged to check prices of vegetables, fruits
Posted by Zawya
The Saudi Gazette
07 August 2010


JEDDAH - Members of the Municipal Council have called on Jeddah Mayoralty to intensify supervision of the central fruit and vegetable market and check on price tampering by traders ahead of Ramadan.

Hussein Ba'aqeel, Chairman of the Municipal Council in Jeddah, accompanied by Hassan Al-Zahrani, Deputy Chairman of the Municipal Council, and Ahmad Banajeh, a member of the council, made an inspection tour of the central fruit and vegetable market in Al-Safa District and the new market east of the highway on Thursday. They checked the hygienic conditions, prices of vegetables and fruits and listened to the suggestions of consumers, salesmen and traders.

Following the tour, Ba'aqeel said that there has been a considerable drop in the hygienic condition. He also stressed the need to set up a specialist laboratory to periodically test fruits and vegetables to ensure their conformity with health standards. Ba'aqeel bemoaned the lack of sufficient supervisory staff to monitor prices and their manipulations by certain expatriate staff.

In its upcoming meetings, Ba'aqeel said, the Municipal Council would discuss the public benefit markets.

The council would write to Jeddah Mayoralty with its suggestions "so as to upgrade Jeddah's markets to convert them into markets of international standard," he said.

The markets now, he said are unhygienic, crowded and not suitable for families.

By Muhammad Al-Dagei

© The Saudi Gazette 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100807051034/Saudi%20Arabia%3A%20Mayoralty
Prices of fruits, vegetables go up sharply in Dammam
Posted by Zawya
The Saudi Gazette
07 August 2010


DAMMAM - Fruit and fresh vegetable prices have increased sharply in the Dammam municipal wholesale market. The prices, wholesale dealers have warned, may rise further due to supply-related problems.

Onion imports have also been affected slightly because of floods in some states in India, the largest onion exporter to the Mideast.

Prices of potatoes, tomatoes, onions and garlic, commonly used in meal preparations during Ramadan, have also increased owing to high demand from retailers and less availability.

According to traders in Dammam municipal wholesale market, imports from Syria and Jordan have decreased and tomatoes and capsicum are expected to become more expensive with the onset of the holy month of Ramadan.

Likewise the prices of oranges, bananas, grapes and apples have also gone up slightly with increased demand. Most supermarkets in the Kingdom have increased the prices of fruits and vegetables as people begin their Ramadan shopping.

By Faisal Aboobacker Ponnani

© The Saudi Gazette 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100807051305/Prices%20of%20fruits%2C%20vegetables%20go%20up%20sharply%20in%20Dammam%20
Qatar: No shortage of wheat for six months
Posted by Zawya
The Peninsula
07 August 2010


DOHA: Qatar has procured adequate wheat stocks to make sure that no shortages of this basic food commodity take place in the country at least over the next six months.

The step has been taken in view of the crisis that threatens to escalate wheat prices worldwide due to depleting production and supplies.

Wheat supply security guaranteed over the coming six months means that wheat flour prices in Qatar would remain stable, a local Arabic daily reported yesterday.

It quoted the general manager of Zad Holding, formerly Qatar Flour Mills, Tariq Mohammed, as saying that Qatar had signed wheat import deals to procure enough stocks for local consumption over the next half-a-year.

The daily said Russia's announcement on Thursday that it was banning the export of wheat over the next four-and-a-half months since millions of acres of its land had been affected due to drought and fires, was unlikely to adversely impact wheat supplies to Qatar.

Tariq Mohammed said flour prices remained stable in the country despite an upswing being witnessed in the rates of the now-precious grain worldwide for the past 23 months since the supply crisis raised its head.

This is because the Qatari government has been subsidising flour for the benefit of the common consumer here. According to him, Qatar imports wheat from Australia and Canada, and not from Russia, which accounts for some eight percent of world wheat production.

© The Peninsula 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100807055056/Qatar%3A%20No%20shortage%20of%20wheat%20for%20six%20months%20
The Ministry of Environment and Water culls 500 goats
Posted by Zawya
WAM (Emirates News Agency)


Dubai, Aug 05th, 2010 (WAM)--The Ministry of Environment and WaterMinistry of Environment and Water has executed 500 heads of sheep infected with proven 'Brucellosis', a common disease that could be contracted by man and animal as well.

Legal actions have been taken for the execution of animals for violating the import regulations in force in the UAE as per the ministerial resolution number 548 for the year 2008, in addition to the violation of procedures for the quarantine in accordance with the Federal Law No. 6 of year 1979, on the veterinary quarantine.

The ministry asked wholesale livestock breeders and importers to log into the website or check with the ministry to learn about the conditions required for the import of live animals and taking into account the quarantine measures in the country of origin, comply with the requirements and health regulations and conduct laboratory tests of live animals. The Ministry is seeking to achieve its strategic objectives and establishment of bio-security to ensure application of the health standards for incoming shipments through the border crossing points in order to preserve the health of all animal from epidemics, and hence the safety and quality of food products. It reiterated that it is working continuously to provide veterinary care at the border crossing points, whether air or land or sea.

© Copyright Emirates News Agency (WAM) 2010.

News Link: http://www.zawya.com/Story.cfm/sidWAM20100805130015079/The%20Ministry%20of%20Environment%20and%20Water%20culls%20500%20goats

Thursday, August 05, 2010

Saudi Arabia: Authorities dismiss rumors on Zamzam
Posted by Zawya
Arab News
05 August 2010


JEDDAH: The Presidency of the Two Holy Mosques Affairs dismissed reports on Wednesday that Zamzam water from the sacred well might not be clean or hygienic and maintained that its distribution was being monitored round the clock.

"Utmost care is given to the blessed Zamzam water. The pumping of water out of the well is being monitored regularly," a presidency spokesman told Arab News.

He added random samples were constantly taken from the well and checked to make sure that the water was fit for human consumption. "We also take samples from the containers and check them," it added.

The presidency asked citizens and foreigners to ensure that holy water was being hygienically stored, as leaving it in the sun could contaminate it.

The blessed water is pumped out of the historic well via stainless steel pipes and filtered using ultraviolet technology. It is then transported to the cooling stations before it is distributed.

© Arab News 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100805040118/Saudi%20Arabia%3A%20Authorities%20dismiss%20rumors%20on%20Zamzam

Wednesday, August 04, 2010

Kuwait: Growing saffron spice is pricy
Posted by Zawya
KUNA (Kuwait News Agency)
03 August 2010


KUWAIT -- Precious saffron plants, with high nutritional value, distinguished crimson color, aroma and taste, widely used in Arabian coffee recipes in the Gulf region as a sign of hospitality, are costly to grow.

Despite the fact that there have been several attempts to grow saffron crocus in the Gulf to help lower the high cost of that spice; studies showed that it is rather pricy to grow this crop especially in areas such as that of the Gulf zone, Supervisor of the agricultural committee at the Gulf forum Mamdouh Al-Anzi told KUNA. Studies revealed that saffron, originally planted in Iran, Spain and Kashmir, is too costly to grow, he said, and explained that in order to get 500 grams of saffron, around 70,000 flowers should be planted.

Saffron becomes lighter when dried. An amount of 25 kilograms turn into five grams when dried, he said.

Some sellers deceive customers through mixing saffron with herbs that resemble saffron in color and easily dissolved in water, such as safflower.

The cost relies however on the redness of saffron threads; the more red they are the more expensive they get, he said, adding that factors such as moist, smell, and volume were taken into account.

Al-Anzi noted the nutritional value and the medical uses of saffron as researchers found that it helped in the treatment and prevention of cancer as it contained cancer-countering substances such as carotenoid.

By Abdullah Al-Harbi

© KUNA (Kuwait News Agency) 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100803115034/Kuwait

Tuesday, August 03, 2010

Jordan: Gov't to ensure affordable food during Ramadan
Posted by Zawya
Jordan Times
03 August 2010


AMMAN -- Deputy Prime Minister and Minister of State Rajai Muasher on Monday stressed that the government has taken several procedures to address any imbalances that may occur in the local market during Ramadan.

Heading a meeting of the higher committee for prices at the Ministry of Industry and Trade yesterday, Muasher said the government is working to protect the middle class to ensure the availability of food items at affordable prices, calling on traders to maintain good relations with consumers, a ministry statement said.

He urged the committee to hold year-round meetings, highlighting its responsibility to assist the Consumer Protection Society (CPS) in raising consumer awareness.

Pointing to major decisions taken by the committee, Minister of Industry and Trade Amer Hadidi said the committee has established an early warning system to predict future imbalances in the local food market, adding that government-run consumer corporations will sell fruits and vegetables in their branches across the Kingdom this Ramadan.

He noted that a media campaign will be conducted by the CPS and the chambers of commerce and industry to raise consumer awareness on appropriate market prices. Hadidi indicated that technical committees were also formed to study market demand for various goods and determine their prices, according to the statement.

Hadidi said the committee has also opened 30 parallel markets across the country and is continuously briefing food traders and importers on local supply and prices of foodstuffs.

The committee meeting was attended by several officials and representatives from the commercial sector in addition to consumer advocates, the statement added.

© Jordan Times 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100803053219/Jordan%3A%20Gov%27t
Evaluation of Oman coastline to study impact of global warming
Posted by Zawya
Oman Daily Observer
03 August 2010


MUSCAT -- The land movement along Oman's coastline needs to be reconstructed and quantified in order to assess and quantify the expected climate changes. This is very important because coastal zones like the coast of the Sultanate are important for human societies and official statistics reveal that more than 50 per cent of the Omani population live along the coastline in Muscat and Al Batinah region.

This was stated by Dr Gosta Hoffmann, Assistant Professor of Applied Geosciences at GUtech.

Dr Hoffmann and a team of the Department of Applied Geosciences at GUtech are working on a research project and trying to find out Oman's status in global climate change. "For the Sultanate it is very important to evaluate the evolution of the whole coastline. This is important to quantify and predict the implications of global climate change for groundwater resources to define the vulnerability of coastal infrastructure concerning natural hazards," said Dr Hoffmann.

"Oman's coastline will be of significant value for the future development of the country resulting in conflicting land use demands, developing potential which is restricted by natural limitations such as water or land," he said. Dr Hoffman said human activities such as burning fossil fuels, coal, oil, gas and deforestation lead to an increase of carbon dioxide (CO2) emission. Carbon dioxide generally absorbs heat radiation from the Earth's surface which leads to higher temperatures.

"If climate changes were small or slow this would not be a problem, societies could adapt, however the changes are huge and fast."

Dr Hoffmann started his scientific career at the University of Greifswald in northern Germany where he obtained his PhD. His dissertation focused on the Late Pleistocene and Holocene coastal evolution of the Baltic Sea.

Fascinated by this topic he went on to become a research fellow in this area at Utrecht University in the Netherlands. During this two-year post doctorate study he concentrated on the evolution of the Rhine Delta. In 2008, he joined the research group of Neotectonics and Geohazards at RWTH Aachen University.

Dr Hoffmann has also guided geological field trips in various countries.

Citing global data Dr Hoffman said during the 20th century sea level rose by about 17 cm and since 1850 the 12 warmest years were between 1995 and 2007. Climate has changed throughout the Earth history, this is a natural process, he said and added that "the global climate change is linked with global changes in sea levels.

"During the last ice age, about 20,000 years ago, the sea level was about 120 metres below the present level."

Suggesting the ways Dr Hoffmann urged individual and community action to minimise emissions of carbon dioxide as well as to develop adaption strategies. Burning less fuel or coal, foster the use of solar energy and adapt in coastal areas the implementation of coastal management strategies.

By Kaushalendra Singh

© Oman Daily Observer 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100803060109/Evaluation%20of%20Oman%20coastline%20to%20study%20impact%20of%20global%20warming