Kuwait leads Arab countries in regional investments
Posted by ArabianBusiness.com
by Gavin
Wednesday, 30 June 2010



INVESTMENT EXPORTS: Kuwait topped
the list of Arab countries at the level of
'exports of investments' to Arab states
in 2009. (Getty Images)

In a report released by The Arab Investment & Export Credit Guarantee Corporation on Tuesday, Kuwait topped Arab countries at the level if ‘exports of investments’ to Arab states in 2009.

Kuwaiti investments in eight Arab countries amounted to approximately $6.1 billion; some 31.9 percent of the overall inter Arab business. Saudi Arabian and UAE investments were estimated at $4.3 billion and $1.2 billion respectively.

In terms of business in Arab countries, Abu Dhabi ranked second with 26.3 percent, or $5.1 billion, of total inter Arab investments, followed by Bahrain with $1.7 billion or 8.7 percent. Qatar invested $1.2 billion or 6.5 percent, with Jordan trailing with $1.1 billion or 5.8 percent.

The report showed that 18 Arab states drew investments worth $80.7 billion, compared to $95 billion in 2008, with the drop attributed to the impact of the global financial recession.

However, it also indicated that the investment atmosphere in the Arab states remained largely regular due to vital legislations being enacted, increased incentives for investors, slashing of taxes and the drawing up of bilateral and multiparty transactions.

Saudi Arabia led the inflow of foreign investments in the region, reaching $35.5 billion in 2009, some 44 percent of the total inflow, followed by Qatar with $8.7 billion and the UAE with $8.6 billion.

The proportion of investments at the inter Arab level was estimated at 27.7 percent for the industrial sector and 36.7 percent in agriculture.

The report added that a number of factors helped the investment atmosphere of the region, including the continuation of reform efforts, namely the expansion of e-government schemes, abidance of Arab governments by privatization strategies, increased investment opportunities and the establishment of industrial zones and towns.

GCC countries that posted a hike in luring foreign investment in 2008-2009 were Qatar and Kuwait, while those that posted a decline were Saudi Arabia, UAE and Bahrain.

News Link: http://www.arabianbusiness.com/591737-kuwait-leads-arab-countries-in-regional-investments

Arab food gap crosses $180bn over past decade
Posted by Zawya
Emirates Business 24-7, 27 June 2010


Arab countries have reeled under a cumulative food gap of more than $180 billion (Dh660.6bn) over the past 10 years to emerge as the largest single farm importer despite their massive arable land potential, according to official figures.

Except for fish, vegetable and other minor crops, Arab nations are suffering from a persistent shortage in all types of farm products and the gap has steadily worsened over the past two decades, showed the Khartoum-based Arab Organisation for Agricultural DevelopmentArab Organisation for Agricultural Development (AOAD)

Wheat accounted for more than half the shortage, and a decision by Saudi Arabia, the largest Arab economy, to stop costly cultivation of wheat and rely solely on imports is expected to further upset that balance. Besides wheat, the Arab food gap is underscored in cereal, barley, sugar, cooking oil, corn, rice and poultry as the Arab World's self-sufficiency in some of these products does not exceed 50 per cent.

The farm gap, the difference between imports and exports of food products, peaked at around $29.8bn (Dh109.45bn) in 2008 due to a surge in global food prices before it edged down to nearly $27.5bn. This boosted the total Arab food gap to a staggering $182bn during 2000-2009, AOAD's figures showed.

The level is nearly quadruple the cumulative gap of around $45bn 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 Arab population was projected at around 351 million.

High population growth

"The Arab population was estimated at nearly 351 million at the end of 2009. Since 1990, it has grown by nearly 2.34 per cent annually compared with global growth of about 1.16 per cent," AOAD said.

"The high population growth in the region is one of the major factors for the persistent deficit in the Arab food balance. Another result of the high growth is that it boosts demand for food, which, in turn, pushes up prices. This means a large number of people will find it difficult to get their food needs."

The report showed total Arab food exports stood at only about $11.5bn in 2009 while imports were as high as $39.04bn, one of their highest levels. It also blamed poor water resources in the region, low land utilisation 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.

What complicates the problem is that most wealthy Arab nations are still reluctant to invest heavily in farming projects in fertile member states for political and security reasons while only around 12 per cent of the total available arable land in the region is exploited, said AOAD, a key Arab League organization.

Multiple obstacles

"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 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."

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 low water resources have sharply depressed the per capita share of water in the Arab World because of a steady population growth of more than two per cent.

"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."

Cereal shortages

AOAD's figures showed the region suffered most from cereal shortage, with the gap in these products standing at about $16.3bn in 2009, nearly 53 per cent of the total Arab food shortage. Wheat was the main victim, with a gap of $8.75bn last year, accounting for 28.4 per cent of the total shortage. The gap value was estimated around $3.2bn in corn, $2.93bn in sugar, $2.59bn in cooking oil, $2.27bn in barley, and $1.99bn in rice. A breakdown showed cereal self-sufficiency increased in 2009 over the previous year but remained below half, standing at 49.3 per cent. Self-sufficiency was put at 47.9 per cent in wheat, 34.1 per cent in corn, 75 per cent in rice, 28 per cent in barley, 68 per cent in dairy products, 27 per cent in sugar, and around 32 per cent in cooking oil.

Many other products were also in a sharp shortage except fish, which remained in a surplus, and eggs, which were near sufficiency. But the report showed there was an improvement in the production of cereal in 2009 after a decline in the previous year. From about 46.6 million tonnes in 2008, cereal output swelled to an all time high of about 54.9 million tonnes in 2009.

Wheat production grew from? 20.4 million tones to 25.8 million tonnes; barley output jumped from 30.1 million tonnes to 43.9 million tonnes; and corn from around 76.6 million tonnes to 80.6 million tonnes. Rice production also grew from about 76.7 million to 79.8 million tonnes.

Need for investment

"One of the solutions to this problem is the need to increase investments in the farming sector and adopt more active agricultural policies," AOAD said.

The surge in food prices in 2008 prompted plans by the UAE, Saudi Arabia and other arid Gulf countries to fund agricultural projects in Sudan and other fertile areas in the region. But such projects are expected to take time and they are not large enough to slash the Arab farm import bill, according to experts. The surge in food prices in 2008 was one of the main reasons for a sharp rise in inflation rates in the UAE and other members of the Gulf Co-operation Council (GCC) given their heavy reliance on farm products.

GCC states, which control nearly 45 per cent of the world's proven oil deposits, are among the largest food importers in the world, given their poor farm potential due to their desert nature. The bulk of their food imports come from outside the Arab region, including the United States and other Western countries.

Official figures showed the GCC's combined farm imports exceeded $75bn during 2005-2009. They accounted for about 41 per cent of the total Arab food import value of $180bn although the population of the six members of around 36 million formed only about 10 per cent of the total Arab population. Arab officials have repeatedly voiced concern about the agricultural gap and growing reliance on food imports, mainly from the US and other Western countries. Some officials considered such reliance as a risk to their security.

According to AOAD and the Kuwaiti-based Arab Fund for Economic and Social Development, another key Arab League institution, most regional nations are suffering from slackening farm exports and rapid growth in the population, leading to a steady increase in their imports of food products.

Low land utilisation

The shortage persisted despite an expansion in the cultivated areas in some Arab countries as a result of reforms aimed at increasing crop.

From around 67 million hectares in 1999, the combined Arab cultivated area widened by nearly 4.3 per cent to 70 million hectares in 2002 and continued to expand to reach around 75 million hectares in 2009. But the report showed that the cultivated areas remained a fraction of the total arable land in the region, estimated at nearly 550 million hectares.

"Arab nations have sought to improve farming policies and such moves have resulted in some positive developments," AOAD said.

"But they have also produced negative results, including the private sector's malpractices, which have hurt the interests of the farmers. New policies are needed to regulate these activities and encourage farmers."

The report urged Arab government to take "urgent" measures to encounter the food price increase in the future, cut food imports from foreign countries, and achieve self-sufficiency in most farm products.

Farm fund

"These measures should include improvement of farm policies, better utilisation of the available arable land, development of existing national agricultural institutions, supporting the joint Arab agricultural ventures and establishments, investment in fertile Arab nations, adoption of necessary policies and national programmes to curb price increases, creation of a pan-Arab fund to finance Arab food security projects, and setting up a joint strategic food stockpile."

The study said creation of a farm fund is crucial for the success of Arab agricultural projects aimed at achieving self-sufficiency on the grounds most fertile countries in the region lack sufficient investments in this sector. "This should prompt Arab nations to seriously consider the creation of a large joint fund to invest in farming projects in the region," it said.

"At the same time, Arab government should take the proposal of setting up a strategic cereal stockpile into consideration given its significance in ensuring the food needs of citizens and curbing sharp price increases. It could be a pan-Arab stockpile or regional silos. This stockpile should be sufficient for at least one year and should help Arab countries in finalising collective purchasing agreements that will give them a better bargaining position."

Saudi sticks to decision to halt wheat production

Saudi Arabia's decision to halt local wheat production and rely on imports from foreign markets is final as the world's oil superpower struggles to preserve its dwindling water resources, according to officials.

The desert 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. "The decision we took two years ago to halt local wheat output is final and clear. There is no going back," said Fahd Balghaneem, Saudi Minister of Agriculture and Head of the Grain Silos and Flour Mills Organisation. "The country is now giving priority to water security over food security... this was a cabinet decision, which also directed us to stop producing wheat locally."

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

By Nadim Kawach

© Emirates Business 24/7 2010

News Link: http://www.zawya.com/story.cfm/sidZAWYA20100627042434/Food%20Gap

Saudi Arabia remains most business confident in GCC
Posted by Arab News
By ARAB NEWS
Published: Jun 23, 2010 00:08 Updated: Jun 23, 2010 00:08


RIYADH: Saudi Arabia remains the most business confident country in the GCC (Gulf Cooperation Counci) - up to a level not seen since 2007, according to the latest Gulf Business Confidence Index released by HSBC, SABB's global banking partner. The survey, which tracks business sentiment in all six countries of the GCC, characterizes the mood of business people as "realistically optimistic." Predictions of revenue, maintenance of profits, budgets and meeting the targets all remain positive. And the index across all six countries remains at its highest for two years.

The survey also reflects that the mood of business people has been trending upward over the last seven quarters, after a low in late 2008, widely seen as the height of the financial crisis. While many of the markets surveyed have shown only a slight increase against Q1, 2010, the upward trend is more marked when viewed over the past year. From Q1, 2009 to date, the overall index has risen by over 15 points to 86. The survey is calculated using the results from Q1, 2007 as a base, with a score of 100.

Although the overall index remains below the heights of 2007 and early 2008, specific indicators show a positive outlook in key operational areas. Forecast growth for 2010 shows that 43 percent see an increase in business turnover in the Middle East, 40 percent see an increase in profit, and 33 percent are planning to increase investment.

"The index is an excellent indicator of perceived confidence around the region, but I believe the most illuminating details lie in the underlying data," said Simon Vaughan Johnson, regional head of commercial banking, HSBC Group, MENA.

"For instance, between the October 2008 and January 2009 surveys, the number of people who were pessimistic about meeting their targets almost doubled to 24 percent. That number has now returned to October 2008 levels of 13 percent, its lowest since the outset of the financial crisis. This mirrors what our customers are telling our teams around the region - companies are actively looking for new opportunities, whilst continuing to rationalize unnecessary spend, and streamline their operations to maximize revenue potential."

Over half of respondents were optimistic that the next three months would see increasing revenue for their companies, and 35 percent are anticipating revenue growth from international trade opportunities.

While the overall mood continues to improve, intra-regional differences show some marked differences between countries in the region's corporate sector: Saudi Arabia is most confident, with an index of 97, and UAE remains the least confident, with an index of 78.4, although the UAE index also showed one of the highest rises quarter-on-quarter. Sentiment in Kuwait and Oman has fallen quarter-on-quarter, while sentiment in Bahrain showed the highest quarterly rise.

"These results show a mood of realistic optimism in the GCC," added Johnson. "Many companies are doing better than they were 12 months ago, but they do not see another boom on the horizon. This realistic perspective is predicting steady and sustainable growth, which is good news for our customers and for the region."

News Link: http://arabnews.com/economy/article71487.ece

Global food production should rise 70% for additional 2.3 billion people by 2050
Posted by Zawya
The Saudi Gazette
27 June 2010


JEDDAH - Global food production will have to increase 70 percent for an additional 2.3 billion people by 2050 while at the same time combating poverty and hunger, using scarce natural resources more efficiently and adapting to climate change, according to a paper recently published in Rome by the United Nations' Food and Agriculture Organization (FAO).

"FAO is cautiously optimistic about the world's potential to feed itself by 2050," said FAO Assistant Director-General Hafez Ghanem. However, he pointed out that feeding everyone in the world by then will not be automatic and several significant challenges have to be met.

Ghanem said there was a need for a proper socioeconomic framework to address imbalances and inequalities and ensure that everyone in the world has access to the food they need and that food production is carried out in a way that reduces poverty and take account of natural resource constraints.

Global projections show that in addition to projected investments in agriculture, further significant investment will be needed to enhance access to food, otherwise some 370 million people could still be hungry in 2050, almost 5 percent of the developing countries' population.

According to the latest UN projections, world population will rise from 6.8 billion today to 9.1 billion in 2050 - a third more mouths to feed than there are today. Nearly all of the population growth will occur in developing countries. Sub-Saharan Africa's population is expected to grow the fastest (up 108 percent, 910 million people), and East and South East Asia's the slowest (up 11 percent, 228 million).

Around 70 percent of the world population will live in cities or urban areas by 2050, up from 49 percent today.

The FAO says the demand for food is expected to continue to grow as a result both of population growth and rising incomes. Demand for cereals (for food and animal feed) is projected to reach some 3 billion tons by 2050. Annual cereal production will have to grow by almost a billion tons (2.1 billion tons today), and meat production by over 200 million tons to reach a total of 470 million tons in 2050, 72 percent of which will be consumed in developing countries, up from the 58 percent today.

The production of biofuels could also increase the demand for agricultural commodities, depending on energy prices and government policies.

Despite the fact that 90 percent of the growth in crop production is projected to come from higher yields and increased cropping intensity, arable land will have to expand by around 120 million hectares in developing countries, mainly in sub-Saharan Africa and Latin America. Arable land in use in developed countries is expected to decline by some 50 million hectares, although this could be changed by the demand for biofuels.

Globally, there are still sufficient land resources available to feed the future world population. FAO cautioned, however, that much of the potential land is suitable for growing only a few crops, not necessarily the crops with highest demand and it is concentrated in a few countries. Much of the land not yet in use also suffers from chemical and physical constraints, endemic diseases and lack of infrastructure which cannot be easily overcome. Therefore significant investments would need to be undertaken in order to bring it into production. Part of the land is also covered by forests, or subject to expanding urban settlements. A number of countries, particularly in the Near East/North Africa and South Asia have already reached or are about to reach the limits of land available.

Water withdrawals for irrigated agriculture are projected to grow at a slower pace due to reduced demand and improved water use efficiency, but will still increase by almost 11 percent by 2050. Globally, fresh water resources are sufficient, but they are very unevenly distributed and water scarcity will reach alarming levels in an increasing number of countries or regions within countries, particularly in the Near East/North Africa and South Asia. Using less water and at the same time producing more food will be the key to addressing water scarcity problems. Water scarcity could be made more acute by changing rainfall patters resulting from climate change.

All in all, the potential to raise crop yields to feed a growing world population seems to be considerable, FAO said. "If the appropriate socio-economic incentives are in place, there are still ample 'bridgeable' gaps in yield (i.e. differences between agro-ecologically attainable and actual yields) that could be exploited."

© The Saudi Gazette 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100627045019/Global%20food%20production%20should%20rise%2070%25%20for%20additional%202%2E3%20billion%20people%20by%202050

Saudi Arabia rated worst in GCC for water security
Posted by ArabianBusiness.com
by Ed Attwood
Thursday, 24 June 2010


BIG PROBLEM: Iraq, Egypt and Syria
were ranked fifth, eighth and tenth,
respectively, out of a survey of 165 nations.


Middle East and North Africa (MENA) countries have performed badly in a new index that rates the supply of fresh clean water to societies and businesses.

Carried out by UK-based corporate risk intelligence firm Maplecroft, the research shows that Iraq, Egypt and Syria were ranked fifth, eighth and tenth, respectively, out of a survey of 165 nations.

All three countries were given an “extreme risk” designation by the report, which added that Egypt was already experiencing internal and cross-border tensions due to limited water resources.

News Link: http://www.arabianbusiness.com/591357-saudi-arabia-rated-worst-in-gcc-for-water-security

Raising Water Productivity to Increase Food Security
Posted by TreeHugger.com
by Lester Brown, Washington, D.C on 06.22.10



With water shortages constraining food production growth, the world needs an effort to raise water productivity similar to the one that nearly tripled land productivity over the last half-century. Since it takes 1,000 tons of water to produce 1 ton of grain, it is not surprising that 70 percent of world water use is devoted to irrigation. Thus, raising irrigation efficiency is central to raising water productivity overall.

Data on the efficiency of surface of water projects—that is, dams that deliver water to farmers through a network of canals—show that crop usage of irrigation water never reaches 100 percent simply because some irrigation water evaporates, some percolates downward, and some runs off. Water policy analysts Sandra Postel and Amy Vickers found that "surface water irrigation efficiency ranges between 25 and 40 percent in India, Mexico, Pakistan, the Philippines, and Thailand; between 40 and 45 percent in Malaysia and Morocco; and between 50 and 60 percent in Israel, Japan, and Taiwan."

Irrigation water efficiency is affected not only by the type and condition of irrigation systems but also by soil type, temperature, and humidity. In hot arid regions, the evaporation of irrigation water is far higher than in cooler humid regions.

In a May 2004 meeting, China's Minister of Water Resources Wang Shucheng outlined for me in some detail the plans to raise China's irrigation efficiency from 43 percent in 2000 to 51 percent in 2010 and then to 55 percent in 2030. The steps he described included raising the price of water, providing incentives for adopting more irrigation-efficient technologies, and developing the local institutions to manage this process. Reaching these goals, he felt, would assure China's future food security.

Raising irrigation efficiency typically means shifting from the less efficient flood or furrow systems to overhead sprinklers or drip irrigation, the gold standard of irrigation efficiency. Switching from flood or furrow to low-pressure sprinkler systems reduces water use by an estimated 30 percent, while switching to drip irrigation typically cuts water use in half.

As an alternative to furrow irrigation, a drip system also raises yields because it provides a steady supply of water with minimal losses to evaporation. Since drip systems are both labor-intensive and water-efficient, they are well suited to countries with a surplus of labor and a shortage of water. A few small countries—Cyprus, Israel, and Jordan—rely heavily on drip irrigation. Among the big three agricultural producers, this more-efficient technology is used on 1-3 percent of irrigated land in India and China and on roughly 4 percent in the United States.

In recent years, small-scale drip-irrigation systems—literally a bucket with flexible plastic tubing to distribute the water—have been developed to irrigate small vegetable gardens with roughly 100 plants (covering 25 square meters). Somewhat larger systems using drums irrigate 125 square meters. In both cases, the containers are elevated slightly, so that gravity distributes the water. Large-scale drip systems using plastic lines that can be moved easily are also becoming popular. These simple systems can pay for themselves in one year. By simultaneously reducing water costs and raising yields, they can dramatically raise incomes of smallholders.

Sandra Postel estimates that drip technology has the potential to profitably irrigate 10 million hectares of India's cropland, nearly one tenth of the total. She sees a similar potential for China, which is now also expanding its drip irrigated area to save scarce water.

In the Punjab, with its extensive double cropping of wheat and rice, fast-falling water tables led the state farmers' commission in 2007 to recommend a delay in transplanting rice from May to late June or early July. This would reduce irrigation water use by roughly one third, since transplanting would coincide with the arrival of the monsoon. The resulting reduction in groundwater use would help stabilize the water table, which has fallen from 5 meters below the surface down to 30 meters in parts of the state.

Institutional shifts—specifically, moving the responsibility for managing irrigation systems from government agencies to local water users associations—can facilitate the more efficient use of water. In many countries farmers are organizing locally so they can assume this responsibility, and since they have an economic stake in good water management, they tend to do a better job than a distant government agency.

Mexico is a leader in developing water users associations. As of 2008, farmers associations managed more than 99 percent of the irrigated area held in public irrigation districts. One advantage of this shift for the government is that the cost of maintaining the irrigation system is assumed locally, reducing the drain on the treasury. This means that associations often need to charge more for irrigation water, but for farmers the production gains from managing their water supply themselves more than outweigh this additional outlay.

In Tunisia, where water users associations manage both irrigation and residential water, the number of associations increased from 340 in 1987 to 2,575 in 1999, covering much of the country. As of 2009, China has more than 40,000 water users associations to locally manage water resources and to maximize water use efficiency. Many other countries now have similar bodies. Although the first groups were organized to deal with large publicly developed irrigation systems, some recent ones have been formed to manage local groundwater irrigation as well. Their goal is to stabilize the water table to avoid aquifer depletion and the economic disruption that it brings to the community.

Low water productivity is often the result of low water prices. In many countries, subsidies lead to irrationally low water prices, creating the impression that water is abundant when in fact it is scarce. As water becomes scarce, it needs to be priced accordingly.

A new mindset is needed, a new way of thinking about water use. For example, shifting to more water-efficient crops wherever possible boosts water productivity. Rice production is being phased out around Beijing because rice is such a thirsty crop. Similarly, Egypt restricts rice production in favor of wheat.

Any measures that raise crop yields on irrigated land also raise the productivity of irrigation water. For people consuming unhealthy amounts of livestock products, moving down the food chain reduces water use. In the United States, where the annual consumption of grain as food and feed averages some 800 kilograms (four fifths of a ton) per person, a modest reduction in the consumption of meat, milk, and eggs could easily cut grain use per person by 100 kilograms. For 300 million Americans, such a reduction would cut grain use by 30 million tons and the need for irrigation water by 30 billion tons.

Bringing water use down to the sustainable yield of aquifers and rivers worldwide involves a wide range of measures not only in agriculture but throughout the economy. The more obvious steps, in addition to more water-efficient irrigation practices and water-efficient crops, include adopting more water-efficient industrial processes and using both more water-efficient household appliances and those that use no water at all, such as the new odorless dry-compost toilets. Recycling urban water supplies is another obvious step in countries facing acute water shortages.


Adapted from Chapter 9, "Feeding Eight Billion People Well" in Lester R. Brown, Plan B 4.0: Mobilizing to Save Civilization (New York: W.W. Norton & Company, 2009), available on-line at www.earthpolicy.org/index.php?/books/pb4

News Link: http://www.treehugger.com/files/2010/06/raising-water-productivity-to-increase-food-security.php

Saudi Arabia to increase silos' capacity by 21 percent
Posted by Zawya
Arab News
23 June 2010


RIYADH: Saudi Arabia's state-run Grain Silos and Flour Mills OrganizationGrain Silos and Flour Mills Organization Grain Silos and Flour Mills Organization plans to increase the capacity of its silos by 21 percent before the end of 2012 as the Kingdom prepares to increase its reliance on wheat imports.

Two years ago, Saudi authorities sought to save water by reducing the amount of wheat they buy from local farmers by 12.5 percent annually, abandoning a 30-year wheat cultivation plan that would have helped the country fulfill its domestic needs.

As a result, the GSFMO has emerged as one of the biggest new buyers in the international grain market.

Consequently however, farmers have been abandoning cultivation of wheat at a faster rate than what authorities had forecast.

GSFMOGSFMOLoading... Managing Director Waleed Al-Khariji said Saudi Arabia's grain silos now have a capacity of around 2.5 million tons. The organization wants to award tenders to expand this by 530,000 tons within a month.

"We have a project in Makkah for 250,000 tons worth of capacity and two others in Jeddah and Dammam that would add 140,000 tons at each of the two locations. Such projects take 26 months to be executed. We expect to start construction work within a month," he said.

The expansion follows a recommendation by the Shoura Council to raise storage capacity to ensure smooth domestic supplies, Kharji added.

Jeddah and Dammam are already Saudi Arabia's main shipping hubs.

The new silos being built in Makkah aim to cater to the needs of a region that attracts at least four million pilgrims each year.

GSFMO also plans to add a third shipping hub for grain in the southern city of Jazan, Khariji said.

"It will have a 120,000 ton capacity. We will soon award a tender for the execution of the silos project in Jazan, which will be our third hub."

The Kingdom needs an estimated 3 million tons of wheat annually. GSFMO's policy is to consistently store six month's worth of wheat stocks, with three week's worth of flour supplies, Kharji added.

By RODOLFO C. ESTIMO JR.

© Arab News 2010


News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100623032115/Saudi%20Arabia%20to%20increase%20silos%27%20capacity%20by%2021%20percent

Saudi investors eye lucrative Australian camel market
Posted by Zawya
Arab News
23 June 2010


RIYADH: Saudi investors are still eagerly waiting for government approval to begin importing wild camels from the Australian outback after authorities in the country announced it would begin culling camels last year.

A number of businessmen have sought the permission of the Ministry of Agriculture to allow them to save Australian camels by bringing them to the Kingdom. The ministry is, however, yet to take a decision. This is mainly thought to be due to the absence of an agreement on the transportation of camels between the two countries. The existing bilateral agreement restricts transportation to sheep and cows, Al-Watan newspaper reported.

Eng. Jaber Al-Shahri, undersecretary for livestock at the Ministry of Agriculture, said the ministry has no objections in importing Australian camels for slaughter as long as the Saudi Food and Drug Authority gives its okay.

"The import of camels from Australia is a matter that is still under discussion between the two sides and no decision has yet been taken," he said, adding that the ministry is wary of taking a decision on importing wild camels, which may pose a danger not only to breeders but also to the public. "We also have to consider the health aspects of such livestock," he said.

The Australian government earlier approached the ministry to facilitate the export of camels. This was after Canberra announced a culling program to reduce the growing numbers of camels in some regions of Australia and mitigate environmental pollution. Al-Shahri confirmed that the ministry had received applications from several investors seeking permission to import Australian camels.

On his part, businessman Hamoud Al-Khalaf noted that Australian camels are of Arabian origin. "Hence, they will easily adapt to the Saudi environment and temperature. Moreover, there would be tremendous response for this species in the local market," he said.

Al-Khalaf has already set aside about $100 million to transport Australian camels into the Kingdom. "A cargo ship, costing $70 million, is being built in Singapore to import camels from Australia. The ship, the construction of which began early this year, has the capacity to carry 2,000 camels," he said, adding that he will ensure all imports follow health regulations.

He added that there is an estimated two million camels in Australia. "The Australian government has frozen the decision to cull some one million camels. This was mainly because of the tremendous response it received from importers in Saudi Arabia and other GCC states," he added.

Some Saudis earlier this year initiated an Internet campaign calling for the transportation of Australian camels to the Kingdom. The campaign followed an announcement by the Australian government that it would use helicopters and marksmen to corral and kill 6,000 feral camels in a small northern town. Days later, Australians welcomed the proposal. Problems began when camels caused chaos in the Northern Territory town of Docker River.

© Arab News 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100623031919/Saudi%20investors%20eye%20lucrative%20Australian%20camel%20market

Algeria dairies halt work over cut in powdered milk imports
Posted by Zawya
Magharebia.com
22 June 2010


The production of packaged milk has suffered since Algerian authorities slashed powdered milk quotas.

Ten dairies have stopped working to protest authorities' decision to halve imported powdered milk quotas for some producers, according to the Algerian newspaper El Watan.

As a result, some regions are experiencing a shortage of packaged milk, according to consumers contacted by Magharebia.

"For now, I'm managing to get a hold of milk in pouches, but if this situation continues, I'm worried we'll be back to the crisis of three years ago," one mother of two young children, who lives east of Algiers, said on Monday (June 21st).

Agriculture Minister Rachid Benaissa last Thursday called an emergency meeting between officials and dairy industry representatives to head off a crisis like that of 2007, during which powdered milk prices rose 40% on the international market, causing domestic prices to soar.

"The milk market is stable and the state has the means to ensure that supplies are maintained," he said. "Those who think they can achieve anything by threats, provocation and taking an entire region hostage are wrong." He added that the quota reductions have not yet been implemented.

"The disruption we've seen over the past few months in the distribution of milk in pouches was brought about by unwarranted pressure from private producers," Trade Minister Mustapha Benbada said on June 16th in Algiers.

"The National Inter-professional Office for Milk (ONIL) has sufficient quantities of powdered milk. So the shortage of this product is just a result of unwarranted pressure from private producers who are resistant to change," he added.

Milk production units will work for "two or even three eight-hour shifts a day, if necessary" to minimise the impact on the dairy market, Benbada said.

A number of regions in the centre of the country have experienced a milk shortage due to the dairies' strike. But dairy workers are unhappy about restrictions on the supply of powdered milk.

"The formula used by the Inter-professional Milk Committee (CIL) to distribute quotas is doing us a lot of damage. The reduction in these quotas is only affecting private dairies, and this is already starting to affect the market," said an official from the Monlait Dairy.

"The limits on the quotas are bound to have an effect across society. We're already thinking about reducing staffing levels if this continues," said a manager at the Betouche Dairy, adding that this group of dairy processors is only producing a million litres a day, or a fifth of its capacity.

ONIL imported only 120,000 tonnes of milk in 2009, a drop in 25,000 tonnes from 2008. The limited amounts of available powdered milk have left dairy producers scrambling.

"The problem lies in the distribution levels of this wretched milk powder," Youcef Hamidouni, a dairy processor from Boumerdes, told Magharebia. "ONIL allocates a certain quantity of powder for manufacturing 300,000 litres of milk to processors in Algiers and a quantity of 5,000 for the other regions across the country. This is where the conflict arises. The other processors are demanding fair treatment."

Maiche Said, a dairy products distributor living in Draa Ben Khedda, said his biggest problem is public processor ONALAIT.

"ONALAIT managers say they don't have enough powder to process the quantity I take to them, and I'm left with the milk to get rid of. I can't carry on like this," he told Magharebia.

"There's no dialogue going on within the inter-professional committee, and we can't understand on what basis they're carrying out this reduction in powdered milk quotas," dairy owner Djaouad Rabhi told Magharebia.

"I have no problems," said Ali Berrah, who owns 10 dairy cows in Makouda in Kabylie. "I've got a contract with a distributor who comes for the milk every morning. I've heard there's a milk crisis, but whatever's going on isn't affecting me, or the other farmers I know."

By Adem Amine for Magharebia in Algiers

© Magharebia.com 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100623041259/Algeria%20dairies%20halt%20work%20over%20cut%20in%20powdered%20milk%20imports

Agreement to protect herdsmen, endangered livestock in Sharqiyah
Posted by Zawya
Oman Daily Observer
22 June 2010


MUSCAT -- Herdsmen who rear the uncommon Gebeli specie of goats found primarily in the mountainous region of the Hail al Harem in Al Sharqiyah Region will receive succour through a partnership between Oman LNGOman LNGLoading... and the Ministry of Agriculture.

For many of the herders, the income from raising this rare breed of goats is a primary source of income and much valued means of livelihood for them and their families.

The partnership which has led to the provision of 10 stockyards and related accessories will also serve to
protect a distinct type of livestock not commonly found in other places.

Prior to the effort, these Gebeli goats often wandered off while in search of grazing area and water, with some of them sustaining injuries due to the rocky terrain in which they moved or even getting lost because of the harsh weather condition especially in winter where the temperature can at times go below zero, with consequent loss of income for the farmers and their families as well as increasing the threat of extinction to the animals.

For the building of the stockyards, which are spread across three locations in the region, specifically in the formidable terrain of Wilayat of Wadi Dima W'attayeen, Oman LNGOman LNGLoading... provided a sum of RO 40,700.
The construction work was executed under the supervision of the office of the director-general of Agriculture and Animal in the Ministry of Agriculture.

Ali al Hashar, Corporate Affairs Manager at Oman LNGOman LNGLoading..., commenting on the stockyards, said: "We were concerned that the source of income and livelihood for the goat herders and their families could be lost if nothing was done to arrest the poor conditions in which the goats were being reared.

We also know that we are preserving a rare breed of goats which is not easily found elsewhere.

By funding the building of these stockyards, we expect that the herders will be assisted in eliminating the risks to losing their stock and continue to raise livestock for a better income in the future. We would like to thank the Ministry of Agriculture for their supervision of the project and their contribution to its success."

Oman LNGOman LNGLoading... is a major contributor to the development of Oman and its people through its Social Investment Programme (SIP) through which it dedicates on a yearly basis, a portion of revenue accruing from its business of exporting liquefied natural gas to countries in Asia and the Pacific Rim.

By Staff Reporter

© Oman Daily Observer 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100622040951/Agreement%20to%20protect%20herdsmen%2C%20endangered%20livestock%20in%20Sharqiyah

Minister Dedeyan hails exemption of industrial exports from taxes
Posted by Zawya
The Daily Star
22 June 2010


BEIRUT: Industry Minister Apraham Dedeyan on Monday welcomed the Cabinet’s decision to agree in its last session on June 18 to his request to exempt all industrial and agricultural exports from taxes on profit and income, adding that this proposal would also be part of 2011 draft budget.

He said the request was one of the main conditions of industrialists for many years, adding that the president, prime ministers and all Cabinet members supported this suggestion.

The minister said the move would help bolster the national economy by giving the industrial sector a bigger role.

Dedeyan added that it had not been possible to introduce the proposals into the current budget because the Finance Ministry needed more time to implement certain mechanisms and procedures.

Dedeyan assured that exempting industrial exports from income tax does not contradict the conditions of the World Trade Organization.

“This exemption from taxes is good news for industrialists who now should expand their business and open new markets abroad,” the minister said. –The Daily Star
© Copyright The Daily Star 2010.

News Link: http://www.zawya.com/Story.cfm/sidDS22062010_dsart45(2)/Lebanese%20Minister%20Dedeyan%20hails%20exemption%20of%20industrial%20exports%20from%20taxes

Otri: Agriculture is Priority to Government
Posted by Zawya
SANA (Syria Arab News Agency)
21 June 2010


Damascus - Prime Minister Mohammed Naji Otri on Monday stressed that the agricultural issue is a priority to the government plans due to the importance of this vital sector in supporting the comprehensive development process in Syria under the leadership of President Bashar al-Assad.

meeting members of the Peasants General Union, Otri highlighted the importance of team work and efforts integration to develop the agricultural sector and carry out agricultural plans to achieve self-efficiency and food security and boost national decision and Syria's steadfastness.

The Prime Minister pointed out to what has been achieved in supporting agricultural products, setting up dams, and reclaiming lands, indicating that the Cabinet is following these plans.

For their part, members of the Peasants General Union breifed Otri on issues realted to agriculture and irrigation, land reclamation, the situation of agricultural production and funding issues.

Prime Minister, Minister of Finance, Minister of Agriculture and Agrarian Reform, Minister of Irrigation, Minister of Industry answered questions raised by members of the Peasants Union.

For their part, members of the union hailed the great support offered by the government to the agricultural sector.

By Fadi Allafi .Mazen Eyon

© SANA (Syria Arab News Agency) 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100622060139/Otri%3A%20Agriculture%20is%20Priority%20to%20Government

Jordan, Azerbaijan to set up joint venture
Posted by Zawya
Jordan News Agency - Petra
20 June 2010


Amman -- Minister of Agriculture Saeed Masri discussed on Sunday with Azerbaijani Ambassador to Jordan Elman Arasli setting up a joint company.

They also discussed the possibility of making Azerbaijan a center to distribute Jordan's exports of fruits and vegetables to Azerbaijan's neighboring countries.

The two officials reiterated the importance of bolstering agricultural ties and facilitating flow of Jordanian exports into the Azeri markets.

The meeting touched on the possibility of importing livestock from Azerbaijan.

© Jordan News Agency - Petra 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100621041056/Jordan%2C%20Azerbaijan%20to%20set%20up%20joint%20venture

Syria, Turkey to Boost Agricultural Cooperation
Posted by Zawya
SANA (Syria Arab News Agency)
20 June 2010


Damascus - Syria and Turkey on Sunday reviewed the growing cooperation and friendship ties between them and prospects of developing and upgrading the existing relations in all fields.

That came during a meeting between Prime Minister Mohammad Naji Otri and Turkish Minister of Environment and Forests Veysel Eroglu.

The two sides discussed joint cooperation in irrigation and agriculture fields as well as the investment of available water resources in development process.

They stressed the importance of exchanging technical expertise to carry out irrigation projects and build dams such as dragging Tigris water to Hasaka Province and the Friendship Dam on Orontes River to avert flood threat.

They called for beefing up cooperation in environment protection and forest and natural reserves development.

Later, Assistant to Vice-President Hassan Turkmani met Eroglu.

The two sides agreed on activating cooperation in meteorology, forest fire control and biodiversity preservation.

For his part, Eroglu expressed Turkey's readiness to provide Syria with new irrigation techniques and cooperate in controlling dust and sandstorms.

By R. Raslan / Ghossoun / Zahra

© SANA (Syria Arab News Agency) 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100621054646/Syria%2C%20Turkey%20to%20Boost%20Agricultural%20Cooperation

20% of Jeddah water supply lost in leaks
Posted by Zawya
The Saudi Gazette
19 June 2010


JEDDAH - The National Water Company (NWC) has said that 20 percent of Jeddah's water supply is lost to leaks in the network.

NWC Chief Executive Luwai Bin Muslim said that despite the figure, the company had made considerable advances in addressing a large percentage of leakages.

"We've installed new valves which have helped improve the supply to homes, and we've recently brought into service a state-of-the-art leak-detection vehicle to locate otherwise invisible leaks," Bin Muslim said.
According to Bin Muslim, the vehicle came into service in February this year and uses helium technology to spot underground leaks.

"It's the first time this technology has been used in the Middle East," he said. "It has already helped detect seven leaks in a network of no longer than five kilometers."

By Abdul Aziz Ghazzawi

© The Saudi Gazette 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100619052851/20%25%20of%20Jeddah%20water%20supply%20lost%20in%20leaks

Qatar: Monopoly of vegetable importers may end soon
Posted by Zawya
The Peninsula
17 June 2010


DOHA: The monopoly of importers of fresh vegetables and fruits and the way the prices of these perishables are currently fixed through auctions at the central market might end soon as the government has plans to overhaul the system sooner rather than later.

The plans come amid increasing public complaints that fruit and vegetable prices in the wholesale market fluctuate on a daily basis and the price of an item can go up steeply all of a sudden
one day.

The Consumer Protection Department of the Ministry of Business and TradeMinistry of Business and Trade has got the go-ahead from the State Cabinet to put a mechanism in place to streamline the supply of fresh vegetables and fruits in the wholesale and retail markets.

The Cabinet, at its weekly meeting yesterday, approved the draft of a decision of the Ministry of Business and TradeMinistry of Business and Trade to streamline the wholesale and retail trade in fresh fruits and vegetables as also their pricing.

Vegetable and fruit importers currently auction their imports and the prices are fixed after these auctions, depending on the quantum of supplies. If an item is in short supply on a particular day but its demand remains stable its wholesale price goes up, in turn affecting its retail price.

Rules require the retailers to display their prices and there is no mechanism at present by which prices can be controlled by the government.

The civic ministry used to monitor the pricing of fresh vegetables and fruits until several years ago. But the trade was liberalised later and the importers were given a free hand to fix the prices through auction. The auctions had also been stopped earlier but have lately resumed, it is learnt.

© The Peninsula 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100617042755/Qatar%3A%20Monopoly%20of%20vegetable%20importers%20may%20end%20soon

More than one billion poor and vulnerable people living in the world’s drylands : UN chief says
Posted by Zawya
WAM (Emirates News Agency)


Manama, 16th June 2010 (WAM) - More than one billion poor and vulnerable people living in the world’s drylands, where efforts to achieve the Millennium Development Goals face particular challenges and thus have lagged behind, the UN Secretary General, Ban Ki-moon, said in a message on the World Day to Combat Desertification and Drought which falls on 17 June 2010.

''Almost three-quarters of rangelands show symptoms of desertification. Over the past 40 years, nearly one third of the world’s cropland has become unproductive, often ending up abandoned. The unremitting stress of drought, famine and deepening poverty threatens to create social strains, in turn creating the potential for involuntary migration, the breakdown of communities, political instability and armed conflict. Indeed, human, environmental and social vulnerability come together with unusual force and symmetry in the world’s drylands. Climate change will only exacerbate such pressures, he said.''In this International Year of Biodiversity, we must remember that drylands are areas of enormous biological diversity and productivity. Thirty per cent of the crops that are cultivated and consumed in every corner of the world originate in drylands. The biodiversity of dryland soil also plays a critical role in transforming atmospheric carbon into organic carbon – the earth’s largest pool of organic carbon.''When we protect and restore drylands, we advance on many fronts at once: we strengthen food security, we address climate change, we help the poor gain control over their destiny, and we accelerate progress towards the achievement of the Millennium Development Goals. On this Day, let us reaffirm our commitment to combating desertification and land degradation and mitigating the effects of drought; and let us recognize that enhancing soils enhances life, he added.

© Copyright Emirates News Agency (WAM) 2010.

News Link: http://www.zawya.com/Story.cfm/sidWAM20100616124029146/%20More%20than%20one%20billion%20poor%20and%20vulnerable%20people%20living%20in%20the%20world%E2%80%99s%20drylands%20%3A%20UN%20chief%20says

Rising crop prices can be 'good news' for farmers: UN/OECD
Posted by Zawya
AFP
ROME, Jun 15, 2010


(AFP) - Farm commodity prices are set to rise in the next 10 years, which will be "good news for farmers" if matched by appropriate policies, the UN food agency and the OECD club of wealthy nations said Tuesday.

"The medium-term outlook suggests that most agricultural prices will be higher in real terms in the coming decade," OECD Secretary General Angel Gurria told a news conference, adding: "This is good news for the world's farmers."

However, he stressed: "Governments can help by making sure that the institutions, policies and technologies are available to allow (farmers) to invest in increasing productivity."

UN Food and Agriculture Organisation (FAO) chief Jacques Diouf agreed, saying: "It's not a question of the number of people, it's a question of technology, investment and policies."

He noted that while only two percent of the populations of developed countries produce their food needs, "in developing countries you need 60 to 80 percent of the population to produce, and it's still not enough to feed the people."

Gurria and Diouf were presenting "Agricultural Outlook," a joint annual report of the FAO and the OECD, which states that "on a per capita basis, production growth in least developed countries is struggling to keep up with rapid population growth."

Diouf singled out China, Brazil, India, Russia and Ukraine as countries where "we see the highest growth in their production," praising them for "taking many of the good policies that are required."

The long-term outlook for food production is positive, the report said.

"Global agricultural production is anticipated to grow more slowly in the next decade than in the past one, but in the absence of unexpected shocks, growth remains on track with estimated longer-term requirements of a 70 percent increase in global food production by 2050."

Nevertheless food insecurity remains a concern with memories still fresh of riots in several countries around the world in 2008 over soaring food and fuel prices.

The report urges stepped-up agricultural production and productivity and says that a "well-functioning, rules-based trading system will be crucial to fair competition and to ensure that food can move from surplus to deficit production areas."

Emerging economies will drive growth in world agricultural production, consumption and trade, the report says. "Demand from developing countries is driven by rising per capita incomes and urbanisation, reinforced by population growth, which remains nearly twice that of the OECD area," it noted.

Gurria, mentioning dietary shifts from mainly carbohydrate to much more protein, said: "Any global picture you have to take a hard look at China because China is shaping these global trends."

gd/hyd

© Copyright AFP 2010.

News Link: http://www.zawya.com/Story.cfm/sidANA20100615T122645ZCUS85/Rising%20crop%20prices%20can%20be%20%27good%20news%27%20for%20farmers%3A%20UN%2FOECD

Jordan discusses agricultural cooperation with Russia and Indonesia
Posted by Zawya
Jordan News Agency - Petra
16 June 2010

Amman - Minister of Agriculture Saeed Masri and Minister of Industry and Trade Amer Hadidi on Wednesday discussed with a delegation from the Russian Ministry of Agriculture, ways of increasing Jordanian exports of fresh fruits and vegetables to the Russian market.

Both sides also reviewed scopes of agricultural relations and means of boosting cooperation between the private sector from the two countries.

Almasri also met with Indonesian Ambassador to Jordan Zainulbahar Noor and discussed bilateral cooperation between Jordan and Indonesia in agricultural fields.

Talks during the meeting also dealt with the possibilities of training Jordanian agricultural engineers and technicians on plant production and forests in Indonesia, increasing mutual exports of fresh fruits and vegetables and exchanging expertise, scientific research in the agricultural domain.

© Jordan News Agency - Petra 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100617034625/Jordan%20discusses%20agricultural%20cooperation%20with%20Russia%20and%20Indonesia

Qatar: Monopoly of vegetable importers may end soon
Posted by Zawya
The Peninsula
17 June 2010


DOHA: The monopoly of importers of fresh vegetables and fruits and the way the prices of these perishables are currently fixed through auctions at the central market might end soon as the government has plans to overhaul the system sooner rather than later.

The plans come amid increasing public complaints that fruit and vegetable prices in the wholesale market fluctuate on a daily basis and the price of an item can go up steeply all of a sudden
one day.

The Consumer Protection Department of the Ministry of Business and TradeMinistry of Business and Trade has got the go-ahead from the State Cabinet to put a mechanism in place to streamline the supply of fresh vegetables and fruits in the wholesale and retail markets.

The Cabinet, at its weekly meeting yesterday, approved the draft of a decision of the Ministry of Business and Trade to streamline the wholesale and retail trade in fresh fruits and vegetables as also their pricing.

Vegetable and fruit importers currently auction their imports and the prices are fixed after these auctions, depending on the quantum of supplies. If an item is in short supply on a particular day but its demand remains stable its wholesale price goes up, in turn affecting its retail price.

Rules require the retailers to display their prices and there is no mechanism at present by which prices can be controlled by the government.

The civic ministry used to monitor the pricing of fresh vegetables and fruits until several years ago. But the trade was liberalised later and the importers were given a free hand to fix the prices through auction. The auctions had also been stopped earlier but have lately resumed, it is learnt.

© The Peninsula 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100617042755/Qatar%3A%20Monopoly%20of%20vegetable%20importers%20may%20end%20soon

Food firms given fortnight to improve storage
Posted by Zawya
Emirates Business 24-7, 15 June 2010


Companies storing food items in warehouses that are low-grade and do not meet the criteria set out by the Dubai Municipality (DM) have been given two weeks to improve their condition.

The municipality yesterday told Emirates Business that stringent action will be taken against warehouses that go below the "C level" and promised to carry out another surprise inspection campaign before Ramadan.

An inspection last month of 257 warehouses storing dry, chilled and frozen food items in Dubai revealed that seven per cent of them were not complying with DM's hygiene requirements. Out of these, 144 establishments were fined for not complying with standards.

"All those who have been warned and fined will have two weeks to improve the condition of their warehouses," warned Sultan Al Tahir, Head of the Product Control Section in DM's Food Control Department.

Prominent violations include inadequate space allotment and cramming of excessive amounts of goods in a limited space, and the lack of proper ventilation systems in preservation of food.

"Warehouses in Dubai have some of the best standards and we do not want people to tamper with their existing structures," said Al Tahir. A second surprise inspection campaign will be carried out before Ramadan. "As it happens every year, we are expecting relatively high movement of foodstuffs during Ramadan. It is our priority to ensure the safety and hygiene of customers," he said.

Following last month's inspection, Tahir had said it was crucial for companies to store food at the required temperature levels during summer months.

"(Maintaining) the correct temperature level is the most effective way to reduce the risk of microbes and prevent them from multiplying and destroying foodstuffs during storage.

"We tried to ensure that refrigeration units were working at temperatures of four degrees Celsius or below and that freezing units were kept at temperatures of minus 18 degrees or less. In the case of dry food, the temperatures have to be kept at 21 degrees or less," he added.

By Joseph George

© Emirates Business 24/7 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100615042346/Dubai%20food%20firms%20given%20fortnight%20to%20improve%20storage

Abu Dhabi unveils online coastal atlas
Posted by Gulf News
Wednesday, Jun 16, 2010
Gulf News


Abu Dhabi Whether it is the habitat of fishes and dugongs that interests you or whether you want to assess the impact of an oil spill, every minute detail related to the coastal environment of the emirate is now within the reach of a click, thanks to the new online coastal atlas.

Unveiled by the Environment Agency — Abu Dhabi (EADEADLoading...) yesterday, the Coastal Resources Atlas and Vulnerability Index (‘Coastal Atlas'), is a pioneering new resource detailing Abu Dhabi's coastline and waters.

The result of two years' work, the atlas is the first comprehensive resource of its kind in the Gulf region and one of the most technologically-advanced in the world, EADEADLoading... has said.

"The atlas serves as an interactive guide that will cater to a broad range of people ranging from policy-makers, scientists and coastal developers to community members," said Thabit Zahran Al Abdul Salam, director of EADEADLoading...'s Biodiversity Management Sector.

It is designed to aid local policy-making and coastal development planning, as well as inform and educate people interested in the emirate's rich marine biodiversity.

The atlas could be used: to find out where dugongs can be found; the kinds of fish and the different areas where they are found; to learn the impact of sea level rise; to assess density of mangroves, sea grass, coral reefs; to find locations of marine protected areas; to prepare environment impact assessments, chemical pollution and harmful algal blooms, he said. It acts as a live database and will be updated continuously.

While most of the data is available to everyone online, a second tier of the atlas is a GIS-based (geographic information system) extension that contains commercial or sensitive information. These can only be accessed by those authorised by the EADEADLoading....

"Locations of oil rigs, for example, can only be viewed by those who are granted access."

Useful tool

The atlas has been primarily designed as a tool to aid policy makers and development planners understand more about the marine environment, helping them to understand the potential impact of new policies, legislation and development decisions. It details environmental sensitivities, such as different habitats, their local biodiversity and their vulnerabilities, according to CMRECS (Coastal and Marine Resources and Ecosystem Classification System) criteria, which is internationally-recognised and considered global best practice.

"The tool will be very useful also to planners and developers who are looking at coastal settlements." For example, if they are planning to dredge, they will be able to map out sensitive areas containing high level of sedimentation and overlay these areas with ecological data. This mapping facility will provide them with data which will be beneficial in their decision-making, he said. Officials did not reveal the cost of the whole project.

The oil spill modelling application, part of the atlas, outlines potential scenarios in the event of an oil spill in the Arabian Gulf.

Based on the wind directions and current pattern, the model will help find the trajectory of the spill and point to the habitats that will be impacted.

"In Abu Dhabi, we are blessed with an abundance of natural coastline and a rich marine environment which is being increasingly recognised, such as that of Bu Tinah Island. We believe that people interested in biodiversity will enjoy learning more about our local marine habitats and wildlife through this easy-to-use online tool."

Recognition

Application wins award

The Coastal Atlas has already gained international recognition, the EADEADLoading... said. The atlas received global best practice award — the Environmental Systems Research Institute (ESRI) Special Achievement Award for Geographic Information Systems (GIS) in Environmental Management for 2010. The award, which was announced about a month ago, will be presented to EADEADLoading... next month, officials said.


— R.A.

By Rayeesa Absal

© Gulf News 2010. All rights reserved.

News Link:

Greif to Establish a Flexible Products Joint Venture With National Scientific Company; Expects to Put Fabric Hub in Saudi Arabia
Posted by DigitalJournal.com
PR Newswire
DELAWARE, Ohio, June 14


DELAWARE, Ohio, June 14 /PRNewswire-FirstCall/ -- Greif, Inc. (NYSE: GEF, GEF.B) through a subsidiary has agreed to form a flexible products joint venture (JV) with National Scientific Company Limited (NSC), a subsidiary of Dabbagh Group Holding Co. Dabbagh is a leading privately held Middle East business group headquartered in Saudi Arabia. Greif will manage the JV, 50 percent of which will be owned by National Scientific, and 50 percent by Greif's subsidiary.

The venture includes the flexible products business of Storsack, which was recently acquired by Greif. Storsack is the world's largest producer of flexible intermediate bulk containers (FIBCs), with 3,000 employees and 16 production facilities worldwide.

The joint venture will be completed after certain conditions are satisfied, including any necessary merger and regulatory approvals.

"This joint venture extends our core rigid industrial packaging business," said Michael J. Gasser, Greif chairman and chief executive officer. "By joining forces with NSC and the Dabbagh Group, which has an established reputation as a trusted partner and pioneer of business within the Middle East and internationally, the JV will benefit from upstream advantages in the flexible products business.

"Also, the extension of Greif's product portfolio to include flexible woven polypropylene packaging enables us to diversify deeper into markets such as the food and pharmaceutical industries."

The JV expects to build a factory in the Kingdom of Saudi Arabia (KSA). The factory will produce the woven polypropylene fabric used to manufacture the finished flexible containers. It will also produce flexible containers for regional customers.

Dr. Majed Al Kassabi, chairman of Dabbagh Group, said, "Together, NSC and Greif are in a prime position to leverage attractive growth opportunities in the flexible packaging global market. The combination of Greif's industrial packaging expertise, NSC's proven entrepreneurship and Saudi Arabia's competitive cost basis will provide customers with unrivalled value."

David Fischer, Greif president and chief operating officer, said, "Applying Greif's global footprint and the Greif Business System to this strategic JV will create additional value for our customers and shareholders. By locating in KSA, we will have many advantages including a progressive, business-friendly environment, advantaged logistics and abundant energy and raw material sources."

NOTE TO INVESTORS: Greif Chairman and CEO Michael Gasser, Executive Vice President and CFO Donald Huml and President and COO David Fischer will present Greif's strategy for its Flexible Products and Services business at the Sofitel Hotel in New York City at 8 a.m. Eastern Time on June 15. The hotel is located at 45 W. 44th Street. A breakfast will be served beginning at 7:30 a.m. Interested persons are asked to RSVP to Deb Strohmaier at debra.Strohmaier@greif.com. The presentation will also be available through Greif's Web site, www.greif.com, in the Investor Center under Presentations.

About Greif

Greif, Inc. is the world leader in industrial packaging products and services. The company produces steel, plastic, fibre, flexible, multiwall and corrugated containers and containerboard, and provides blending and packaging services for a wide range of industries. Greif also manages timber properties in North America. The company is strategically positioned in more than 50 countries to serve global as well as regional customers. Additional information is on the company's Web site at www.greif.com.

About National Scientific Company Limited

National Scientific Company Limited is part of the Dabbagh Group, one of the leading privately held business groups in the Middle East. The Group was established in 1962 and today comprises more than 25 autonomous companies in diversified businesses with more than 5,000 employees operating in various countries around the world. Dabbagh's core business portfolio is structured around strategic portfolios including petroleum products, manufactured housing, food and agriculture.

Swicorp acted as financial advisor to NSC and the Dabbagh Group. .

Forward-Looking Statements

All statements other than statements of historical facts included in this news release, including, without limitation, statements regarding the Company's future financial position, business strategy, budgets, projected costs, goals and plans and objectives of management for future operations, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "project," "believe," "continue," "on track" or "target" or the negative thereof or variations thereon or similar terminology. All forward-looking statements made in this news release are based on information currently available to management. Although the Company believes that the expectations reflected in forward-looking statements have a reasonable basis, the Company can give no assurance that these expectations will prove to be correct. Forward-looking statements are subject to risks and uncertainties that could cause actual events or results to differ materially from those expressed in or implied by the statements. Such risks and uncertainties that might cause a difference include, but are not limited to: general economic and business conditions, including a prolonged or substantial economic downturn; the availability of the credit markets to our customers and suppliers, as well as the Company; changing trends and demands in the industries in which the Company competes, including industry over-capacity; industry competition; the continuing consolidation of the Company's customer base for its industrial packaging, containerboard and corrugated products; political instability in those foreign countries where the Company manufactures and sells its products; foreign currency fluctuations and devaluations; availability and costs of raw materials for the manufacture of the Company's products, particularly steel, resin and old corrugated containers; price fluctuations in energy costs; costs associated with litigation or claims against the Company pertaining to environmental, safety and health, product liability and other matters; work stoppages and other labor relations matters; property loss resulting from wars, acts of terrorism or natural disasters; the Company's ability to integrate its newly acquired operations effectively with its existing business; the Company's ability to achieve improved operating efficiencies and capabilities; the Company's ability to effectively embed and realize improvements from the Greif Business System; the frequency and volume of sales of the Company's timber, timberland and special use timberland; and the deviation of actual results from the estimates and/or assumptions used by the Company in the application of its significant accounting policies. These and other risks and uncertainties that could materially affect the Company's consolidated financial results are further discussed in its filings with the Securities and Exchange Commission, including its Form 10-K for the year ended Oct. 31, 2009. The Company assumes no obligation to update any forward-looking statements.

SOURCE Greif, Inc.

News Link: http://www.digitaljournal.com/pr/55458

Saleem al-Hasani: Worrying about a water shortage in Iraq
Posted by TwinCities.com
By Saleem al-Hasani and Basim al-Shara
Updated: 06/13/2010 10:12:25 PM CDT


BAGHDAD — Iraqis are calling on their incoming government to devote more energy to resolving the country's chronic water problems, with some experts stating that water will be more important than oil in the long-term development of the county.

Even as recent rains have brought some relief to drought-stricken Iraq, the historic problem of water scarcity has forced tens of thousands of rural Iraqis from their homes. The government estimates that nearly 2 million people face severe drinking water shortages and extremely limited electricity due to hydropower shortages.

Meanwhile, diplomatic tensions are running high as promises from upriver countries such as Turkey, Syria and Iran to allow more water into Iraq appear not to have been met. Foreign Minister Hoshiar Zebari denounced a plan by Syria to divert water from the Tigris River to irrigate 200,000 acres of land as detrimental to Iraq's future.

"The next government will be challenged on the water issue and there is no option but to deal with it. I understand that Iraq faces more than one problem, but this one can't be ignored. No matter what the government is focusing on, this problem will impose itself," said Dr. Awn Thiab al-Ajeli, the head of Iraq's National Center for Water Resource Management within the ministry of water resources.

"The first step that should be made is to reach a deal with Turkey as well as Iran and Syria in order to have good, stable amounts of water enter Iraq each day. The
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current situation is that the amount is good one day, and bad the next. To make this step, a deal must be made between governments, not just between two water ministries. It depends on the diplomatic relations between the two states," Ajeli said.

Officials have said in the past security concerns have overshadowed the development of a forward-thinking water policy. With Iraq's recent and relative stability, experts are now calling for a plan to tackle the water problems that have afflicted the country — from rising salinity in the southern marshland to the imminent demise of traditional irrigation systems, known as karez, in the north.

A UNESCO report found that 100,000 Iraqis have fled their native communities since 2005 due to water shortages.

Another U.N. study concluded that the water levels in the Tigris and the Euphrates rivers, Iraq's primary sources of water, have fallen by more than two-thirds in recent years. The report cautioned that the vital lifelines could completely dry up by 2040.

"At the current rates, Iraq's water supply will fall an estimated 43 billion cubic meters by 2015, far short of the 77 billion that the country will need to avert a widespread humanitarian disaster," the U.N. report read.

Social problems connected with water scarcity are common in Iraq: fishermen in the south complain of a declining catches; in agricultural areas, water shortages have caused wheat production to fall by half. According to the United Nations, Iraq imports 80 percent of its food and 90 percent of Iraq's land is either desert or "suffering from severe desertification." "Water is more important than oil for Iraq because we have agricultural lands which, without water, are useless. Agriculture is the future and the new government needs to see that," Ajeji said.

The political impact of water relations with upriver countries is not lost on the United Nations.

"We believe that the problem has political dimensions between Iraq and (its neighbors), which are trying to put pressure on the Iraqi government to advance some economic and political interests. The maneuvering has already begun in determining how much water Iraq should really have," its report said.

Dr. Mohammed al-Zubaidi, political science professor at Baghdad University, said water is already the defining factor in Iraq's foreign relations.

"Listen, don't be naive. Upriver countries dominate down river countries because they control water revenue. This gives them advantages in other fields as well," Zubaidi said.

"Let's talk about Turkey and Syria. We have concerns that one day they will ask in return for water, one barrel of water for one barrel of oil," he said. "That day will come soon if Iraq maintains its ignorant strategies of wasteful water management." The Baghdad government claims it is doing its part in seeking adequate water supplies for Iraq and applying diplomatic pressure to upriver neighbors.

"We have formed delegations to visit Turkey, Iran and Syria to speak with them about sharing water because we face a serious problem in this regard. We have sent letters demanding the need to give us more water," Jamal al-Battiq, head of parliament's agricultural committee, said.

Mustafa Kibargolu, a professor at Bilkent University's international relations department, cautioned that water could be the source of conflict in years to come.

"Unless some old water policies are purged and new ones introduced, it is a real possibility that this region will become a time bomb in terms of water rights."

Saleem al-Hasani and Basim al-Sharra are reporters in Iraq who write for The Institute for War & Peace Reporting, a nonprofit organization that trains journalists in areas of conflict. Readers may write to the authors at the Institute for War & Peace Reporting, 48 Grays Inn Road, London WC1X 8LT, U.K.; Web site: www.iwpr.net.

News Link: http://www.twincities.com/opinion/ci_15291028?source=rss&nclick_check=1

New Saudi company leases Asia land for rice
Posted by Zawya
Financial Times
Sunday, Jun 13, 2010


As Saudi Arabian investors accelerate efforts to farm land overseas, a group of leading businessmen said on Saturday that they were launching an agricultural company to grow rice under contract with growers in Asia.

The Far East Agricultural Investment Co, an SR100m ($26.6m) investment vehicle, has already arranged leases in Cambodia, Vietnam, Pakistan and the Philippines for aromatic and long grain basmati rice, both intended to export to Saudi Arabia at market prices, said Mohammed Abdulla al-Rajhi, chairman of the new company. The first harvest of rice, about 60,000 tons, is due to arrive to Saudi Arabia early next year, he said.

"We will start with rice, but we will expand to cover all other strategic foods the kingdom needs," Mr Rajhi told Financial Times. Mr Rajhi, who also heads the Tabuk Agricultural Development CompanyTabuk Agricultural Development Company, said that the new company would grow tropical fruits and contract land suitable for wheat and corn in central Asia.

According to the agreements already signed, the Saudi partners will provide the seed, engineering and harvesting technology, build mills, silos and warehouses, and invest in roads and other logistics, he said.

Saudi Arabia, China and other desert Gulf states covet underdeveloped farmland in African and Asian nations to ensure access to food, but their interest has drawn criticism. Jacques Diouf, director-general of the UN Food and Agriculture Organisation has warned of the perception of "neo-colonialism", particularly if countries afflicted by hunger ship their food staples to the Gulf.

Two years ago, Saudi Arabia announced plans to phase out domestic wheat production by 2016 from the current 2.5m tons to protect scarce fossil water resources. But global commodity prices skyrocketed and rice-producing countries announced restrictions on exports, inflating food prices.

Concerned about food security and flush with oil money, Saudi Arabia announced the King Abdullah Initiative for Agricultural Investment Overseas to secure imports of strategic foods, including wheat, soybeans, sugar, rice and alfalfa, from Saudi-managed farms abroad.

The plan was for private companies to lead investments with the government providing political support and credit facilities through a SR3bn ($800m) agriculture company owned by the Public Investment Fund.

But when global commodity prices plummeted in late 2008 and 2009, Saudi businessmen complain that government enthusiasm ebbed.

Other Saudi companies have already started agricultural arrangements in countries such as Egypt, Sudan, Ethiopia and Kazakhstan. Jannat, another company chaired by Mr Rajhi, is securing 100,000 to 215,000 hectares of land abroad, including investing $100m in African countries.

Wary of the image and the potential of stirring political instability or anger, Mr Rajhi indicated on Saturday that the farms have no plans for buying land or monopolising harvests.

"Once they see Saudis or Gulf countries, they think of agricultural exploitation," he said. "We do not want to take any country's land and we are aware we have to give something back to the community. We will create jobs, build roads and schools and infrastructure."

The company intends to launch an IPO after completing three budget years, he said.

By Abeer Allam in Riyadh

© Copyright The Financial Times Ltd 2010. Privacy policy.

News Link: http://www.zawya.com/story.cfm/sid20100613_1349_25/New%20Saudi%20Company%20Leases%20Asia%20Land%20For%20Rice

SAAB Extends 10,128 Agricultural Loans in Tabuk Province
Posted by Zawya
Saudi Press Agency
14 June 2010


Tabuk -- The number of loans extended by the branch of the Saudi Arabian Agricultural Bank in Tabuk province up to 1431H amounted to 10,128 loans valued at SR1,706,002,214.

Director of the branch in Tabuk province Mohammed Al-Alawi said it has supervised the implementation of projects for production of eggs and poultry, as well as for sheep-breeding, greenhouses, and production of wheat, fodders, fruits and vegetables.

He noted that the branch has been extending short -term loans which are repaid after the end of one year from the date of receiving the loan.

He added that sometimes the fund extends medium-term loans for digging wells and establishing irrigation systems and purchasing fishing equipment.

Al-Alawi said the role of SAABSAABLoading... is not confined to extending loans and subsidies, but it also undertakes the role of guidance to farmers.

© Saudi Press Agency 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100614104221/SAAB%20Extends%2010%2C128%20Agricultural%20Loans%20in%20Tabuk%20Province

Oman has huge potential for greenhouse farming
Posted by Zawya
Oman Daily Observer
14 June 2010


MUSCAT -- Greenhouse farming has great potential in Oman due to its geographical location and climate.

Scarce water supplies have also led the Ministry of Agriculture to adopt policies that support the reduction of agriculture practices that require a high use of water or do not make the most efficient use of water.

Part of the ministry's policy involves either refurbishing and modernising existing greenhouse operations or relocating both green houses and high water use field crops to other regions of the country. One potential relocation area is in western Oman in the large region between Thumrait and Muqshin north of the Salalah crescent.

While this area is currently little developed, there already exists a good road and communications services and potentially large undeveloped water resources. Relocation of industries to the region could be the spark for a large regional development initiative and involve the assembly of a wide range of services and facilities.

Deliberating upon the need of greenhouse farming in Oman, Basim Bashir Abiudoon, Vegetable Crop Researcher at Agriculture Research Centre at Salalah, told the Observer: "This farming technology is useful for the countries, which are water stressed and have very poor endowment of water resources."

"The technology, thus, is suitable for this region as it reduces the evaporation of irrigation water and it also reduces labour cost and ultimately the production cost of the agriculture products," he said. The greenhouse farming is undergoing a dramatic change. The Agriculture Research Centre at Salalah is growing hothouse tomatoes and exotic plants for sale in markets.

The agriculture department is trying to popularise the technology among farmers and civilians and as of now there are five to seven greenhouse farms in and around Salalah.

The greenhouse farmers are exploring new forms, such as vertical greenhouse farms and new growing methods such as hydroponics and aeroponics. With the agricultural industry suffering from loss of topsoil, sterilisation of lands due to overuse of synthetic fertilisers and disruption of eco-systems due to indiscriminate use of pesticides, greenhouse farming may prove to be the most viable solution to the agricultural industry's woes.

Commenting on the location of greenhouse farms, Basim said: "A greenhouse farm can be located in the middle of the desert or in an urban metropolitan centre. The farm is a self-contained, self-powered operation that allows for the structure itself to be built just about anywhere. The farm can use hydroponics to grow its massive crops of tomatoes and cucumbers."

The size of a small and standard greenhouse is 270 square metres "that can allow someone to grow a garden of vegetables, fruits, herbs and flowers within the controlled environment," said Basam.

The use of several greenhouses, according to Basm, is more practical than one very large greenhouse for a small farmer. By having small greenhouse, one can adjust the environment of each greenhouse to suit the needs of particular crops. "Large-scale farms often focus on one crop, be it tomatoes, cucumbers, berries or other single food product," he said.

By Kaushalendra Singh

© Oman Daily Observer 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100614040303/Oman%20has%20huge%20potential%20for%20greenhouse%20farming