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
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

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

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

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
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

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

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)

t1larg.jpg

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
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