The Great Energy Squeeze of 2010

Posted by www.uncommonwisdomdaily.com
by Sean Brodrick on February 26, 2010 at 8:30 am

We’re early in the year, and already energy prices are zigzagging higher. The culprit? China, which is using more energy of all types. Meanwhile, production is falling, and tanker storage is falling, setting us up for a good ol’ fashioned squeeze in energy prices.

The good news is that the solution to this looming problem is also a good choice for investors — I’m talking about alternative or “green” energy. And in fact, I have a NEW pick in the green energy space.

More on that in a bit. First, here’s the latest news — just some of the things I’m watching now.

China — The Thirsty Tiger. China is the world’s second-biggest energy consumer (the U.S. is #1), and it’s getting more thirsty by the minute. China processed 29% more crude oil in January than a year earlier, according to the China Petroleum & Chemical Association. China’s economy is back in boom mode. The Chinese economy expanded at the fastest pace in the fourth quarter since 2007, and will grow four times faster than the U.S. in 2010.

China imported more than half its crude oil last year. This year, China’s crude oil imports may hit an all-time high, according to China National Petroleum Corp. By 2015, it could be importing 11.5 million barrels a day — nearly three times the record 4 million barrels a day it imported in January.

The Rest of the Developing World Is Racing to Catch Up. Emerging economies account for 47% of global oil demand in 2010, up from 37% in 2000, according to the International Energy Agency. This is lighting a fire under green energy projects.

The IEA expects consumers globally, especially the Chinese, to burn more crude oil this year than previously forecast.

So no wonder that the International Energy Agency said it expects consumers globally — led by China — to burn more crude oil this year than previously forecast. The IEA expects world oil demand to average 86.5 million barrels a day in 2010, an increase of 170,000 from its January report and growth of 1.8% from 2009. And ALL of the increase in consumption comes from emerging markets.

Saudi Arabia Shifts East. The U.S. has always been Saudi Arabia’s most important customer. But that relationship is being redefined, as Saudi Arabia sees the enormous potential in China and shifts its eyes to the East. Result: Saudi Arabia is boosting its exports to China even as its exports to the U.S. fell below 1 million barrels a day last year to hit a 22-year-low.

Supply Is Coming Under Terrible Pressure. The one-two of a financial crisis and global recession torpedoed a lot of new oil projects, and the number of oil and gas rigs hit a 6-year-low in May. Rising oil prices have since sent the number of rigs in service up by 40%, according to data from Baker Hughes. That sounds great, but if you were an oil driller, would you want to make long-term plans under such wild market conditions? Many can’t — or won’t.

And then there’s the inescapable math of oil field depletion. From 2011 on, the relentless drop in global oil production from existing fields will be barely balanced by new projects. We’ll see a drop of just over 4 million barrels per day from the fields that are currently producing about 85 million barrels a day. After 2014, world production will go into steeper and steeper decline. While the world sleeps, the oil sheiks are counting down to doomsday.

It’s Not Just Oil — It’s All Energy Types. China is the world’s biggest coal user, and it imported 16.4 million metric tonnes in December, customs data shows. That’s a six-fold increase from a year earlier. And this has caused some analysts to raise their coal price estimates to $70 a tonne this year. It was just $50 a tonne recently.

If coal prices spike, that means we’ll face energy squeezes on two fronts. Higher coal prices will raise the cost of electricity used to light and heat our homes and workplaces. And higher oil prices will hit you in the wallet every time you pull up to the gas pump. It all has the potential to add up to the Great Energy Squeeze of 2010!

Don’t you hate it when we get squeezed by China and snubbed by Saudi Arabia? Don’t you wish there was something you could do about it? Well, now there IS something you can do: Turn green. Alternative energy gives you the opportunity to do something about America’s dependence on foreign oil and potentially reap a handsome profit at the same time.

Green Energy Solutions on the Road and at Home

In my Golden Age of Green Energy Report, I talk about an alternative fuel we have for cars now that works. Electric cars may be the solution some day, but right now, there are more and more cars hitting the road powered by another “alternative” — natural gas. And I name my best pick in this field — one that could really take off.

It’s just one of eight red-hot picks in the report — picks ranging from wind to solar to nuclear and more.

If you invest in alternative energy, you MUST be careful. Let me show you why …

China Is Rewriting the Rules of the Game

You might think wind power is a great place to invest, and you’d be right. Wind capacity in the United States has tripled and is enough to meet U.S. electricity consumption, according to the Department of Energy.

But you’d also be wrong — because the boys in Beijing just handed down a new edict effectively shutting out international wind power developers from building offshore wind farms in China. The Global Wind Energy Council calls the new regulations “shocking.”

Wind capacity in the United States has tripled and is enough to meet U.S. electricity consumption.

They shouldn’t be shocked — China never plays fair. This is bad news for European and some American wind power makers, and great news for Chinese wind power manufacturers.

Guess what kind of wind company I recommended in my Golden Age of Green Energy Report? It’s a trick question — I recommended a company that makes the equipment that wind farms use, and it sells to BOTH sides in China’s war over wind!

That’s because I think it’s just smart, when possible, to invest in companies that have an edge on the competition and a “moat” around their business.

News Link: http://www.uncommonwisdomdaily.com/the-great-energy-squeeze-of-2010-6-8730

Saudi Arabia Qatar sign 6 pacts to boost ties
Posted by Zawya.com
Arab News
23 February 2010


JEDDAH: Saudi Arabia and Qatar have signed six agreements to strengthen cooperation between the two GCC neighbors, especially in the areas of health, agriculture, commerce, information and political coordination.

The agreements were signed following a meeting of the Saudi-Qatari Coordination Council in Doha on Monday. The meeting was co-chaired by Second Deputy Premier and Minister of Interior Prince Naif and Qatari Crown Prince Sheikh Tamim bin Hamad Al-Thani.

The meeting, which was attended by senior Cabinet members from both countries, explored the prospects of expanding cooperation in political, military, security, economic, commercial, investment and cultural fields as well as in media and Islamic affairs.

Speaking to reporters after the meeting, Prince Naif said the formation of the coordination council would strengthen cooperation between the two countries in all areas. "We are happy about the achievements of the last meeting in 2009 and also about this meeting," the Saudi Press Agency quoted Prince Naif as saying.

Asked about Saudi Arabia's stand on Iran's nuclear program, Prince Naif said: "We have the same stand as other Gulf Cooperation Council countries, which was clearly stated during the last summit in Kuwait."

Answering a related question, Sheikh Tamim said his recent visit to Tehran had been preplanned on the basis of an invitation from the Iranian government. "My discussions in Tehran focused on ways of strengthening stability in the region," he pointed out. Earlier in his address, Prince Naif stressed the need for strengthening political and security coordination between the two countries in order to confront challenges.

Foreign Minister Prince Saud Al-Faisal and his Qatari counterpart Sheikh Hamad bin Jassem Al-Thani signed documents for setting up the coordination council and a memorandum of understanding (MOU) for coordination between the two foreign ministries.

The two ministers signed another agreement for diplomatic and consular cooperation. Commerce and Industry Minister Abdullah Zainal Alireza and Qatari State Minister for International Cooperation Khaled Al-Attiyah signed a MOU for cooperation between the commerce ministries in the two countries. Alireza and Qatari Energy Minister Abdullah Al-Attiyah signed a deal for industrial cooperation.

Culture and Information Minister Abdul Aziz Khoja and his Qatari counterpart, Hamad Al-Kawari, signed an agreement for cultural and information cooperation. Islamic Affairs Minister Saleh Al-Asheikh and Khaled Al-Attiyah, who is acting Islamic affairs minister in Qatar, signed an MOU for cooperation in Islamic affairs and endowments.

Health Minister Dr. Abdullah Al-Rabeeah and his Qatari counterpart Abdullah Al-Qahtani signed another accord for health cooperation. Agriculture Minister Fahd Balghonaim and Qatari Environment Minister Abdullah Al-Maadhadi signed an agreement for cooperation in agriculture, livestock and fisheries, while Alireza and Khaled Al-Attiyah signed another deal for cooperation between the two commerce ministries.

By P. K. ABDUL GHAFOUR

© Arab News 2010

News Link: http://www.zawya.com/story.cfm/sidZAWYA20100224032158/Saudi Arabia Qatar Sign 6 Pacts To Boost Ties

Nanotechnology could help Arab region
Posted by NANOWERK.com
February 20, 2010

(Nanowerk News) "Nanotechnology could aid the future of development of the Arab region," says Mohamed H.A. Hassan, executive director of TWAS, the academy of sciences for the developing world, and president of the African Academy of Sciences. Hassan made his remarks at a panel session, "Re-emergence of Science, Technology and Education as Priorities in the Arab World," taking place at the AAAS's annual meeting in San Diego.

"The Arab region, home to some 300 million people, faces a host of daunting development challenges," Hassan notes. "Three of the most fundamental involve ensuring adequate supplies of water, energy and food." Advances in nanotechnology, he says, "could help achieve progress by helping to address each of these challenges."

For example, he notes that nano-filters could enhance the efficiency of desalinization plants, helping to ensure adequate supplies of water in the region. Similarly, nanotechnology could improve the capacity of solar panels. More abundant supplies of water and energy, Hassan adds, "would boost irrigation and help increase agricultural output."

But none of this is likely to take place, he cautions, "without a strong commitment to training the next generation of scientists." The Arab region has some inherent demographic advantages when seeking to address human resource issues related to scientific capacity building. "Sixty percent of the population is less than 25 years old," he says.

"Yet, the region has some glaring weaknesses as well," he says. "Arab countries spend just 0.3% of their gross domestic product (GDP) on science and technology, compared to 1% in a growing number of developing countries and 2% to 3% in many developed countries. Scientists in the region publish less than 1% of the world's peer-reviewed scientific articles.

Hassan points to some encouraging recent signs, however. "A growing number of countries have invested in high-profile projects designed to quickly build scientific capacity in critical areas of science and technology." He cites, for example, the opening of King Abdullah University of Science and Technology (KAUST) for post-graduate studies in Saudi Arabia and Qatar's Science and Technology Park (QSTP).

But much more will need to be done, he says. To boost science, he calls on each Arab country "to create at least one world-class university" and "build at least one world-class state-of-the-art science centre." Hassan also believes the national merit-based academies in the region should become more engaged in their societies and stronger advocates for science education and science-based development.

He readily acknowledges that "with so many immediate challenges facing the region, it's difficult for governments to engage in long-term strategies for development." But he says that "unless countries within the Arab region make a sustained effort to build scientific capacity, they will find themselves unable to overcome the 'knowledge-deficit' obstacles that have impeded economic development for far too long."

"Nanotechnology may not be the first thing that comes to mind in discussions dealing with strategies to address the Arab region's most pressing challenges," Hassan concludes. But such investments in science and technology could be a key to the region's future."

News Link: http://www.nanowerk.com/news/newsid=14957.php

Kingdom must have agriculture base, says Al-Rasheed

By SHAHEEN NAZAR | ARAB NEWS
Posted by Arab News
Published: Feb 18, 2010 11:36 PM Updated: Feb 18, 2010 11:36 PM

JEDDAH: Many people do not believe that three million Saudis are below the poverty line and 91 percent Saudis earn less than SR6,000 a month, said Turki Faisal Al-Rasheed, chairman of Golden Gras Inc., a major agricultural company based in Riyadh.

He said Saudi Arabia should do everything possible to help rural masses that depend on agriculture. Water scarcity is one of the limiting factors to local food production. To overcome this the government should build dams to tap the renewable water so that small stake farmers in rural areas get water for irrigation.

According to Al-Rasheed, the Kingdom gets six to eight million cubic meters of rainwater yearly. “Our strategy should be to make optimum use of whatever little rainwater we get,” he said here on the sidelines of the just-concluded Jeddah Economic Forum in which he was one of the panelists.

Al-Rasheed said the secret behind China’s success was its farm policy of the 1990s. It invested with small farmers and gave them a free hand.

“That became the engine of growth for the country,” he said.

He said agriculture is one of the most effective tools to promote growth and alleviate poverty. Therefore, Saudi Arabia must have a base of agriculture. “We must use the highly genetically modified seeds. We must heavily depend on the new technologies of the most optimum water management,” he said.

Al-Rasheed said it was the corporate social responsibility of the government to make distribution of wealth throughout the Kingdom. It should support the farmers of Taif to grow roses and guarantee their produce is bought. Similarly, farmers in Jazan and Asir and other provinces should also be supported in all possible ways.

The Ministry of Water and Electricity has formed an autonomous body called the National Water Company (NWC) with the mandate to oversee wastewater management. Al-Rasheed said the treated water was not going to help farmers in rural areas. “It will only supply water to the suburbs of major cities,” he added.

After the food crisis of 2008, Saudi Arabia, like many other countries in the Middle East, went to countries in Asia and Africa to lease farmland. Al-Rasheed said instead of leasing the land Saudi Arabia should purchase it. According to him, there was a big difference between the two options. “When you buy a land you own it. It’s tradable. But if you lease a land it has no value. In the book value it is called leased land. It does not appreciate,” he said.

Al-Rasheed had a solution to the social and political implications the land buying deal may have in the host country. He said the deal should be on the basis of partnership between the private sectors of Saudi Arabia and the host country. “A joint venture company should be formed with Saudi side keeping 60 percent while the rest of the share may be floated in the market so that the public of the host country has an interest in it.” The role of the two governments should be limited to official work like in any other joint venture, he added.

Commenting on the reservations many people have about the genetically modified seeds, he said: “We don’t have choices. People were against this when there was abundance of food. Now when there is a shortage you have to live with it.” According to him, agriculture was facing worldwide neglect. He cited the World Bank whose lending to agricultural projects in 1980 was 25 percent of its budget. In 2000 the number went down to 10 percent. Moreover, the bank has lost almost half of its technical staff in the area of agriculture development. His list of neglect was long. Punjab region, the most fertile land shared by India and Pakistan, he said, has not seen development or investment in new farm technology for the last 30 years. Worse, the dams in the region have not been upgraded during the period. The Philippines has lost its rice production because of continued apathy. Thailand and Vietnam claimed to have enough food but they were exposed when the food riots erupted.

News Link: http://arabnews.com/saudiarabia/article19281.ece

WTO Names GCC as world's biggest importer of food
Posted by Zawya.com
Wednesday, Feb 17, 2010

Gulf News

Dubai More than 90 per cent of the Gulf region's food is imported, according to officials. This has left the region's 36 million people at the mercy of global price shocks.

According to the World Trade Organisation, the GCC is the biggest importer of food in the world with more than 90 per cent brought into the region.

"Growing concerns over food security have pushed countries in the Arabian Gulf to seek solutions to arid land problems," Goutam Malhotra, exhibition manager for AGRA Middle East, said.

Recent estimates by Business Monitor International show that food expenditure in the UAE reached $6.7 billion (Dh24.6 billion) in 2009.

This market is forecast to grow by 2.67 per cent in 2010, making it worth $6.96 billion.

"The region ranks as one of the world's biggest food importers and Dubai is the dominant commercial centre and trading house of the Middle East food sector and an important driver for exporter business growth," Hilal Saeed Al Merri, chief executive officer of the Dubai World Trade Centre, said at a press conference yesterday.

"Dubai is also increasingly re-exporting food products around the world.

"Approximately $1.2 billion worth of food-related commodities were traded in 2008."

According to Standard Chartered's latest food report, the Mena region's growing dependence on food imports is due to water shortages and increasing demand for food from a growing population.

"Growing [food] locally is not a viable option for the UAE as it costs three or four times more to grow local crops than it does to import," Harish Rupani, managing director of Equinox Trading, a food products trading company, told Gulf News.

Inflation

With such a heavy reliance on food imports, the UAE remains increasingly vulnerable to global price fluctuations and changes in trade policies in exporting countries.

Food prices remain at historically high levels — 80 per cent higher than the low mid-2002 levels. They are continuing to rise, according to Standard Chartered's most recent food report.

"The prices of food and commodities have gone into the hands of speculators, which caused a lot of damage in terms of price inflation.

"Over the past five years, rice and sugar have tripled in price," Rupani said.

The changing global climate has also been another factor.

Research by Business Monitor International shows that the UAE government is also making a big effort to increase the number of food processing plants in the country.

The government has ploughed investment worth $1.4 billion into the food sector since 1994.

There are now 150 food processing plants operational in the UAE.

By Aya Lowe

© Gulf News 2010. All rights reserved.

News Link: http://www.zawya.com/Story.cfm/sidGN_17022010_170223/WTO%20names%20GCC%20as%20world%27s%20biggest%20importer%20of%20food

Arabs, Africa can benefit from Chinese agricultural expertise: expert

Posted by Balita-dot-ph
February 17, 2010 11:55 am

SHARM EL-SHEIKH, Egypt, Feb. 17 — The Arab and African countries can benefit from the Chinese expertise in agriculture, which will facilitate the whole region's strategies for food security, an agriculture expert said Tuesday.

"China is so developed in the field of genetic engineering that is related to animals or plants, and they have been working for long to produce disease-resistant plants and seeds, as well as carrying out studies on artificial fertilization and hybridization, " said Ebrahim Yusuf Ahmed, an animal wealth expert and the director of Animal Wealth Directorate in the Ministry of Municipalities Affairs and Agriculture of Bahrain.

"All these experiences can be transferred by China to Africa and the Arab world. This can help increase the agricultural and animal production and hence raise the food security level," he said.

He made the remarks on the sidelines of a three-day joint African-Arab ministerial meeting on agriculture and food security, which concluded Tuesday.

"We cooperate with China. There is an agreement on cooperation in the field of plant and animal production as well as the fish wealth since 2000 … China sends us experts in the field of plant and animal production as well as fishery," he added.

Asked about an Afro-Arab joint action plan adopted by the meeting, the expert said that Africa faces some challenges in regard to the productivity of its animal wealth and the spread of diseases.

The expert said the African countries need to improve its agricultural productivity and veterinary services, and the Arabs should provide technical support, funds and programs to train African breeders and establish research agencies.

"We in the Gulf area import cattle from Europe to produce milk. When Africa has cattle that can produce big quantity of milk, we can then move towards Africa. It is a neighboring area and we are acquainted with it," he said. (PNA/Xinhua)

ALM/ebp

News Link: http://balita.ph/2010/02/17/arabs-africa-can-benefit-from-chinese-agricultural-expertise-expert/

Food Security a difficult issue to resolve

By ROGER HARRISON | ARAB NEWS

Published: Feb 16, 2010 12:25 AM Updated: Feb 16, 2010 12:25 AM

JEDDAH: The topic of food security took center stage at the Jeddah Economic Forum Monday afternoon. At the aggregate level it was agreed that there is enough food to feed the world, and that food insecurity at local levels is due to inadequate production and supply together with uneven access and distribution.

Speakers offered business solutions and opinions but eventually, in one of the set piece speeches, Turki Al-Rasheed set out the less well-received political aspects of food security.

Setting the scene for the web of issues surrounding food security, Intithar Hussein from the Islamic Development Bank outlined what the bank sees is a key area of concern - food security as a continuing world crisis, especially among IDB members.

"One in six human beings is suffering from food insecurity and under-nourishment," he told the conference. Climate change, and financial crises have deepened its effect leading to political and social crises. Hussein said that these people were largely in countries that depend on imports for their food needs, and fragile states where markets do not function and where the urban poor depend on cash for every aspect of their lives. This particularly applies to dwellers in sub-Saharan Africa and Asia who spend more than half their income on food.

The last few years has seen poor people selling assets simply to survive and this, he said, has slowed already slow development. Although food prices have dropped from the 2008 peak, they are still higher than the pre-crises levels.

Increased cost of production, global food reserves, climatic variability and biofuel production have had serious effects on the supply side. Most importantly, under investment in agricultural infrastructure and strain on water resources has played a major role in the crisis.

"The conditions that caused the crisis remains," he said. There is a risk that they may trigger another unless adequate action is taken.

Hussein said that the agricultural industry offers great opportunities with new agricultural technology, expanding markets and enlightened policy that would lead to food security and profitable food businesses. However, food security needed integrated systems at the regional and local levels that were resistant to shock and took account of development in related areas of technology and markets.

Sami Baroum, MD of the Savola Group, led the delegates through the intricacies of the logistical relationships between food producers, traders and processors, emphasizing that the connection between all three areas in the agricultural industry is mutually beneficial.

"Logistics will become more critical as the volume of cross border volumes and urbanization increases," he said, noting that food security is not synonymous with national and local production, opening the door for the need of a more realistic view of the interdependence of nations in the production and supply of food. He contended that it is essential to establish broader international ties and adopt regional scale logistics to link global markets. Most of all, the food industry should use its particular skills to partner governments to manage strategic food reserves, the effects of seasonality, demand and deployment.

Yataka Kase, president and CEO of the Sojit Corporation, demonstrated that few countries are entirely self sufficient in food production and therefore total food security. He noted Japan produced only 40 percent of its requirements, the UK about 75 percent and the US and France between 120 and 130 percent. He concurred that food distribution systems needed improvement and that governments should stockpile grain reserves and improve self-sufficiency where possible.

It was Al-Rasheed, chairman of Golden Grass, who made the telling point that food scarcity could be seen as "the political aspect of agricultural development. Agriculture is one of the most effective tools to promote growth and alleviate poverty."

Inevitably, as food is a commodity, albeit one that is essential to life, supply or withdrawal takes on a political aspect when scaled up. He gave one example of the neglect of agricultural development - he said that in 1980, 25 percent of loans from the IDB were for agricultural development.

"In 2000 - would anybody like to take a guess? It was 10 percent."

He noted that "food security may emerge as one of the key issues of the 21st century." He followed this by saying that water scarcity in Saudi Arabia was one of the limiting factors of food production. In 2007, water consumption was 23 billion cubic meters of which 87.5 percent was used for agriculture. The world average was 71 percent.

He said that to legislate to stop wheat production for farmers who had invested many millions of riyals in their water and farm equipment and require that they stop growing wheat and cause farmers to grow alfalfa and summer crops that use anything up to 16 times more water is easy. The process, however, produces some unfortunate results.

Referring to government bureaucrats who could prevent farmers growing at the stroke of a pen, he said: "You decided to make the surgery but you don't want to pay the price after the surgery."

The JEF enters its last day Tuesday with sessions on health, science and technology and education.

News Link: http://arabnews.com/economy/article17593.ece

Water resources critical factor in Saudi progress
Sunday 14 February 2010 (29 Safar 1431)
Roger Harrison I Arab News


ONE of the tragic ironies of living in a desert is the floods. Ample water to wreak havoc, as it did Nov. 24 last year when it thundered uncontrolled into eastern Jeddah killing scores and wrecking property, yet not enough to sustain life throughout the year. In short, too much water in the wrong place at the wrong time.

Given the climatic conditions, no reliance can be placed on even fairly regular delivery of manageable quantities of rainwater, with the possible exceptions of parts of the Asir highlands in the south-western corner of the Kingdom.

Accessible resources of water are available from the Kingdom’s 11 main aquifers. However, no one knows the volume stored there but two things are known. The rate that water recharges this ancient fossil water is one percent or less than the rate at which it is extracted and that the aquifers are finite.

The Kingdom’s mean annual surface runoff has been estimated at more than 2 billion cubic meters per year. The Kingdom’s aquifers have an estimated combined mean annual recharge of nearly 1 billion cubic meters per year. According to the World Resources Institute the renewable groundwater and surface water resources overlap, i.e. the entire renewable groundwater resources originate in recharge from wadis. This means that total renewable water resources are about 2 BCM/year. Surface resources and renewable aquifers are concentrated in the west and southwest, where rainfall is higher.

Saudi Arabia has one of the highest per capita potable daily water use rates in the world at about 102,000 liters annually or 286 liters daily in 2008. The Kingdom has over 30 government-operated desalination plants and their combined production reached 1.1 BCM by 2007. By the end of 2009, the Kingdom was producing in the order of 1.7 billion cubic meters of water per year making it the largest producer of desalinated water in the world.

Saudi Arabia is growing rapidly, both in terms of population and industrialization. Modern water pumping and irrigation technology together with increased urbanization and agricultural activity, have significantly increased the demand on its water resources. The population in the countries of the Arabian Peninsula almost doubled between 1970 and 1990, from 17.8 to 33.5 million. A UN estimate in 1994 suggested that in Saudi Arabia it was expected to reach 40.4 million by 2025. Currently at about 28 million and with a population increase of about 4 percent per annum, it is currently set for 50.35 million by 2025. That puts tremendous pressure on the existing dwindling water resources and the government to exert control on the demand and supply side of water consumption and production.

A few of the water use figures from the Economic and Social Commission for Western Asia (ESCWA) secretariat illustrates the point. In 1990, domestic consumption was 1,508 million cubic meters (mcm), Agriculture 14,600 mcm and industrial 192 mcm. Ten years later those numbers had risen to 2,350 mcm, 15,000 mcm and 415 mcm respectively. Agriculture has not increased much. Domestic use though rose more than 55 percent and more than doubled. Based on the population estimate of 40.4 million. ECWSA estimated the consumption by 2025 would be 6,450 mcm domestic, 16,300 mcm agricultural and 1,450 mcm industrial. Population growth figures suggest 50 million plus, not 40 million.

Saudi Arabia then is potentially facing an acute, though use-specific, water shortage.

The largest consumer of water is agriculture at around 90 percent. All of it is either fossil water from aquifers, some wastewater — either raw or minimally processed or runoff and surface water.

Half the Kingdom’s drinking water is desalinated seawater and about 40 percent is from groundwater. The balance comes from surface water (9 percent) and one percent is reclaimed wastewater.

The Kingdom can and is building desalination plants to address drinking and industrial use, but the use of non-renewable resources such as the aquifers will eventually become a major problem if withdrawal continues at the current rate. The ECWSA figures indicate that agricultural use is increasing at a modest rate, but the very fact that the reserves are being used for the production of food that could be imported with no drain on the country’s natural resources is a subject few wish to discuss.

It seems almost inevitable that there will be a restructuring of the balance between domestic/industrial consumption and agricultural use. The former is essential to the development of the Kingdom, creation of jobs for Saudi nationals and generation of new industrial bases such as mining to provide a viable alternative to oil as income. There has long been a national requirement for food security and it was written into the five-year economic plans that were the basis for Saudi development. However, 2025 may well see that changed radically.

One example illustrates the decisions that will have to be taken over the next 15 years or so. The Kingdom has the largest integrated dairy facility in the world, at over 35,000 heads of cattle. It takes about 1000 liters of water to produce 1 liter of milk. Most if not all that water comes from groundwater — a non-renewable resource — and is used to grow the water-hungry fresh fodder for the herd. A hidden element in this process is that most of the irrigation systems used to grow the fodder are spray based. Up to 40 percent of the water leaving the spray never gets to the roots of the plants it is meant to nourish and is lost through evaporation. Thus, the 1000 liter figure is probably very much higher in the climatic conditions of the Kingdom.

Milk can be imported — either as liquid or powder. By importing it, the water that was used to produce it is imported as “virtual water” — that is, it was used outside the Kingdom in an area that is water rich to produce the milk. This releases the Kingdom’s water to find use in industry and for domestic consumption — both of which use far less water, and therefore slow down the extraction rate from aquifers to a level nearer to the recharge rate. In turn, this will extend the life of the natural reserve.

Decisions over water use and distribution of resources are political. However, the physical realities of demography, declining resources and climate change are all going to play a part in the shaping of a new approach to the use of water in Saudi Arabia between now and 2025 and perhaps encourage a reassessment of national policy.


News Link: http://www.arabnews.com/?page=6&section=0&article=132946&d=14&m=2&y=2010

Is the end of fossil-fuel era really close?
Syed Rashid Husain I Arab News
Sunday 14 February 2010 (29 Safar 1431)


Global energy dynamics are changing — and changing fast. And these carry tremendous implications for both producers as well as consumers. Over the last few months, the energy world has undergone a complete metamorphosis. Hardly 19 months ago, crude was almost $147 a barrel — and pundits were clamoring that the world was about to enter the phase of supply being less than demand.

That Peak Oil had arrived and crude could even cross the $200 mark. All this now seems a matter of distant past. The recession that enveloped the world in the meantime, added with fast changing global consumption pattern, has changed the sentiments from bullish to bearish — to say the least.

But is it a temporary phase or is it here to stay? That is a big question haunting the energy world. However, indications are that dynamics have changed — and changed for ever.

The debate on Peak Oil in the meantime, has been pushed to the sidelines — if not rejected outright. We are living in a new world. Supply is no more the issue. Instead, the issue of demand having peaked is being discussed all around. Peak Demand and not Peak Oil seems to be the real concern at the moment.

Global demand is not growing fast enough — if not dwindling. In fact in the established economies it is already on retreat. Demand in the world’s largest market, the US, is still nearly 10 percent below the peak it touched before the recession.

The Paris-based International Energy Agency is now projecting that the combination of improved fuel efficiency and the increased use of renewable energy meant demand for oil from developed countries would never return to the record levels seen in 2006 and 2007.

“When we look at the OECD countries — the US, Europe and Japan — I think the level of demand that we have seen in 2006 and 2007, we will never see again,” says Fatih Birol, the chief economist at the Paris-based International Energy Agency (IEA), the OECD energy watchdog. “There may be some zigzags up and down but as a trend I think it will be a downward trend in terms of oil consumption,” Birol said.

The BP chief executive Tony Hayward also concedes that the oil industry will never again sell as much in developed markets as it did in 2007.

Cambridge Energy Research Associates, a consulting firm, predicts that petroleum demand in the world’s rich industrial nations probably won’t ever rebound as high as its 2005 peak. Total demand will grow, but only because there’s still rising consumption in industrializing nations, mainly China. And despite the fact that China is today referred to as the emerging global gas guzzler, the fact remains that as the mainland devours oil and coal, Beijing is also very seriously pursuing a green agenda. China has the world’s top solar panel industry — a power plant in Beijing is one of the world’s most efficient — and auto emission standards there are now tougher than those in the US. China’s official policy mandates that alternate sources support 15 percent of the country’s energy needs by 2020, up from 9 percent now. So China’s petroleum consumption will keep increasing, but perhaps at not so steep a rate as expected. Indeed, CERA suggests in a recent report that the limit on oil production over the next 20 years could well be a peaking in demand, not supply, as lower birthrates, improved energy efficiency and changing values reduce the globe’s use of oil without the need for shortages and skyrocketing prices.

Peter Buchanan, an economist at CIBC World Markets, sees a similar scenario. “It’s going to take a long time for demand to get back to pre-recession levels in the industrial world, if indeed it ever does,” he said.

If today’s worldwide talk about limits on carbon emissions, alternative energy and improved conservation efforts proves to be serious, it’s possible that world oil demand will never rebound to its previous level, most now appear in agreement. And there are reasons for this. In the fast changing environment, with stress on alternatives and renewables, for both political and environmental reasons, the dominance of fossil fuel in the overall global energy mix is definitely under cloud. As per the IEA by 2030 electricity generation from fossil fuel will go down and renewable such as nuclear, hydro and others would fill in the gap.

The car industry is also to undergo massive and rapid changes in the years to come. Currently 99 percent of cars have internal combustible engines. Now that is undergoing revolutionary changes, with stark implications for fossil fuel markets. After all 70-75 percent of fossil fuel today is used in the transportation sector. And for the world to achieve the IEA 450 scenario, limiting the global temperature rise to around 2°C from the current 6°C, almost 60 percent of cars would need to be based on advanced technology, mainly electrical, by 2020. All this is changing the very energy milieu — and indeed permanently.

The emphasis on alternatives and renewable is also contributing adversely — as far as fossil fuel is concerned — to the emerging picture. President Obama says the US should depend less on oil and more on so-called clean energy technology. The president is also encouraging increased production of coal, urging to move quickly to alternative fuels. A presidential panel advocates greater use of biofuels and clean coal technology. The US is now producing about as much ethanol as it is importing crude oil from Saudi Arabia, and on the current trend, one could expect the US ethanol production to be over the US import of Saudi crude oil in 2010, analysts feel.

Over and above those key trends, the increasing push for environmental change coupled with the high price of oil energy is also delivering new, and in some cases the re-use of old, technologies. Most European countries are now offering subsidies to a variety of green energies. The US has also legislated recently to raise mileage per gallon on new vehicles.

Already there is a project to generate energy from sun in Sahara deserts, and then connect it to a grid taking the energy to Germany and other parts of Europe. The South Korean government is also committed to securing new sources of energy and Seoul recently announced that it will be spending 50 trillion won ($38 billion) over the next four years in a “Green New Deal”.

Even in Saudi Arabia, as in rest of the Gulf, there is a growing emphasis on tapping the solar riches. The objective is to stay as the energy supplier to the world. Under the Masdar initiative, Abu Dhabi is embarking on the first carbon neutral and zero waste city of the world. The $50 million project produces 17,500 megawatts of clean electricity and offsets 15,000 tons of carbon emissions per year. Qatar is also to build a $1 billion solar power plant. Last year, the World Bank announced plans to invest $5.5 billion in solar energy projects in the region. Two major energy deficient countries in the region, Pakistan and India also, are serious in tapping their solar riches.

There is a growing emphasis on nuclear energy, too. While the Iranian nuclear program has assumed a political and belligerent tone, countries of the Gulf are embarking on projects to develop and generate nuclear industry so as to meet the growing electricity needs of the region. And from the supply side too, emerging factors are impacting the long-term scenario. Already the spare capacity in Saudi Arabia is touching the 4.5 million barrels per day. Saudi Arabia says it could definitely take production to even higher levels — 15 million bpd — but there don’t seem to be many takers in the market place. And this is interesting.

The nearby Iraq is often termed as virgin as far as oil exploration is concerned. There are now indications that if things go as per plans, the Iraqi production could quadruple by 2020 to 10 million barrels a day from the current 2.5 million barrels. Oil Minister Hussein Shahristani believes production could even touch 12.5 million bpd.

Scientists working for the US Geological Survey believe Venezuela’s Orinoco belt region holds twice as much as previously thought. The geologists estimate the area could yield 513 billion barrels of “technically recoverable” oil in the Orinoco belt. This is more than double the Saudi proven reserves. In addition, there are a number of new entrants into the top league of global oil producers. Canada, in view of its technological advance and indeed a higher oil price, is now being recognized as having the world’s second largest oil reserves. Brazil, with its recent discoveries, is looking to double production by 2020 (to about 4m bpd) while Angola — which has doubled production in the last six years — is expected to add another 50 percent by 2015. Kazakhstan has also rapidly ramped up production, from 0.5 to 1.5m bpd in the last decade.

Energy markets are undergoing massive transformation. While the need of fossil fuel would definitely be there, for many decades to come, yet the fact remains that signs of change are there. A lot of serious work seems to have definitely gone into the transformation.

But does that necessarily mean the end of the fossil fuel era? No, not at all.

In fact, despite the growth of renewable and alternatives, the need for fossil fuel would stay for many more decades to come. But indeed the intensity is changing — and that too carries serious implications for the regional producers — the single product economies of the Gulf.


News Link: http://www.arabnews.com/?page=6&section=0&article=132949&d=14&m=2&y=2010

Deal signed to establish agro research center at KSU
Posted by Zawya
11 February 2010


RIYADH: The Ministry of Agriculture and the King Saud University (KSU) in Riyadh have signed a SR187 million agreement to establish a Sustainable Agriculture Development and Research Center in Riyadh.

The agreement was signed by Agriculture Minister Fahad Balghunaim and Abdullah Al-Othman, rector of the King Saud University in Riyadh, on Wednesday.

"The priority of the Ministry of Agriculture is to achieve sustainable agricultural development with the conservation of natural resources, particularly water," said Balghunaim, adding that he hopes that the project would help farmers as well as consumers get the best out of new technology.

The proposed research, the minister said, would explore new methods of conserving water in agriculture, something that would eventually help contribute to the Kingdom's economic development. King Saud University will offer its expertise in research and contact relevant international organizations to help with research.

Under the agreement, the center, along with its laboratory, will be located in the Techno Valley inside the KSU campus. Besides the agreed SR187 million, the cost of the establishment of the laboratory will be financed by Al-Bayroni, a Jubail-based fertilizer company, which is a subsidiary of the Saudi Arabian Basic Industries Corporation.

Describing the agreement as a scientific cooperation between the two establishments to conduct research on how best agricultural work could be developed using modern technology, Al-Othman said the main objective of the project is to raise efficiency in the use of the Kingdom's natural resources and to develop the country's economic goals.

He added that the private and public sectors would be asked to contribute to the research program. "We will seek the cooperation of local as well as foreign expertise to carry out our research successfully," he said.

The government this year allocated SR46.0 ($12.3) billion for the water, agriculture and infrastructure sectors -- an increase of 30 percent over the previous year.

Appropriations for new projects include enhancing water sources, dams and wells, as well as improving water and sewage networks. There are also allocations for new water desalination plants and the upgrading of existing ones. Moreover, these appropriations include new projects, which will be undertaken in the two industrial cities of Jubail and Yanbu to attract domestic and foreign investments.

By Mohammad Rasooldeen

© Arab News 2010

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

Owners must register their farms, workers within two years
Posted by Zawya
Thursday, Feb 11, 2010



Dubai Farm owners in Dubai will be given two-year grace period to register their farms and farmers at the Dubai Residency Department, said a senior official.

Major General Mohammad Ahmad Al Merri, Director General of the Dubai General Department for Residency and Foreigners Affairs told Gulf News that all farm owners in Dubai must register their farms at the residency department and be registered under the Firm/Establishment System.

Firm cards

All farms in Dubai must also obtain Firm/establishment cards before February 2012. "Farms will be allowed for a specific number of workers, which will be decided by the department," he said.

Major General Al Merri continued that this is part of the Emirate's efforts to overcome illegal residents, who sometimes find a safe haven working on farms. "We are regulating the sponsorship of workers who work for farms in the Emirate. We want to be sure that all and everyone is [are] living legally here and we will work hard on it," he said.

This is part of a campaign under the slogan "Badir" service or to "take initiative" to help overcome the problem of illegal immigrants in the country.

"[The] Badir service is in cooperation with Dubai Police's Al Ameen serviceand the Criminal and Investigation Department at the police," he said.

He said this campaign will last for two years. "We have to know how many farms are there and how many workers are working for any farm," he said.

Major General Al Merri said that the aim of the campaign is the safety and security of the country.

The department yesterday opened a new service centre in the Al Lisaili area, offering residents all residency and naturalisation services.

By Bassma Al Jandaly

© Gulf News 2010. All rights reserved.


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

Saudi ministers ban dairy exports to help conserve water
Posted by ArabianBusiness.com
by Elsa Baxter
Tuesday, 02 February 2010

MILK BAN: Saudi officials have banned
the export of dairy products. (Getty Images)

Saudi Arabia has banned the export of dairy products from the kingdom in a bid to help conserve water.

The kingdom’s dairy industry consumes vast amounts of water through production, which, officials said, should be used for the greater good of the nation, Arab News reports.

“The council decided to formulate an action plan for the ban so that the kingdom’s population would benefit from adequate water supplies for their daily consumption and for essential agricultural purposes,” said a member of the Shoura Council.

Saudi Arabia has banned the export of dairy products from the kingdom in a bid to help conserve water.

The kingdom’s dairy industry consumes vast amounts of water through production, which, officials said, should be used for the greater good of the nation, Arab News reports.

“The council decided to formulate an action plan for the ban so that the kingdom’s population would benefit from adequate water supplies for their daily consumption and for essential agricultural purposes,” said a member of the Shoura Council.

Saudi is home to a number of leading dairy companies, including Almarai, that export products to neighbouring countries.

It is not known whether dairy firms will be compensated for any financial loss incurred over the export ban.

News Link: http://www.arabianbusiness.com/580537-saudi-ministers-ban-dairy-exports-to-help-conserve-water

Increasing Food Security in Dry Areas of the Middle East
The project also is expected to increase income for farmers. Transcript of radio broadcast:
Posted by VOANews.com
07 February 2010


This is the VOA Special English Development Report.

Agricultural experts have launched a land and water management project in the Middle East. The project seeks to increase food security in dry areas. Researchers say the water availability in some of the areas has dropped well below the internationally recognized standard.

The project is seeking ideas from farmers to develop research programs

Egypt, Iraq, Jordan, Lebanon, the West Bank, Syria and Yemen are all taking part in the project. It is part of a larger ten-year effort called the Water and Livelihoods Initiative. The project is also expected to increase household income for farmers in the areas.

The United States Agency for International Development provided one million dollars for the Water and Livelihoods Initiative. Scott Christianson is an agricultural development advisor with U.S.A.I.D. He helped develop the project while working for the International Center for Agricultural Research in the Dry Areas. He says the countries taking part in the project were all carefully selected.

SCOTT CHRISTIANSON: "They all share a socio-economic and cultural heritage that's fairly homogeneous. We feel that it's going to maximize our opportunity for trading of knowledge that we will generate in the project."

Research by the International Center for Agricultural Research in the Dry Areas and its partners has already proven to be successful. New irrigation methods are expected to double wheat production while using one-third of the water required for full irrigation. Experts say the new methods also increase crop production up to five times more than crops that depend on rainfall only.

The International Center for Agricultural Research in the Dry Areas will provide technical support for the project. Officials from the International Water Management Institute and the International Food Policy Research Institute are also taking part in the effort.

Each team will be joined by experts from local research institutions, universities and government agencies.

SCOTT CHRISTIANSON: "We have good partnerships among the countries within each agro-eco system so that through this twinning they can learn lessons from each other and work together effectively through time."

Scott Christianson and other officials met in Amman, Jordan last week. They attended an international conference on food security and climate change in dry areas. Nearly one-fourth of the world's people live in these areas.

Officials say more must be done to deal with water shortages in agriculture. If not, they say, the future of food security, economic development and social stability in dry areas will be put at risk.

And that's the VOA Special English Development Report, written by June Simms. I'm Steve Ember.


News Link: http://www.voanews.com/specialenglish/2010-02-07-voa1.cfm

Arab self-sufficiency in food
Posted by Arab News
Sunday 7 February 2010 (22 Safar 1431)
Turki Faisal Al-Rasheed | Arab News



FOOD security is the ability of a nation or community to secure its needs of basic food commodities by producing them locally or importing the best quality from abroad at lowest prices. The greater the self-reliance on food needs the less political pressure a nation will face. Exporting countries, particularly in times of crisis, need to keep most of their products for their people. Therefore, and in case of food shortage at global level and weak international competition, these countries keep the best quality for them and export the worst ones for highest prices.

The Arab world is suffering acute food shortage and the financing of food imports has become a tremendous burden on most Arab countries as it depletes a large amount of national income without covering the shortage in most of food commodities in the Arab countries, especially wheat.

The decline in domestic production and increasing dependence on imports have weakened the capabilities of the Arab countries to become self-sufficient. This constitutes a greater danger to their citizens, because what are imported are essentials and have no alternatives and cannot be dispensed with.

In addition to the external factors, there are negative aspects in the Arab countries that have deepened the problem. The population increase has exceeded the average growth rates in agricultural production, a matter that led to an imbalance in the supply and demand conditions. At the same time the migration from rural areas to cities led to urban expansion at the expense of agricultural lands.

The lack of sufficient water resources and misuse of these resources as well as the dependence on irrigated agriculture have increased the rate of water consumption, especially the groundwater to the extent that many people, especially in Saudi Arabia, accuse farmers of wasting the national water resources.

In addition, cultivated area in Arab countries has declined to one third of the cultivable lands. There are many reasons for this such as the lack of optimal use of all resources to compensate for the big shortage in food commodities, the absence of unified Arab action to develop agricultural exports and an inability to strike a balance between locally produced food and imported ones.

TO this should be added the neglect of research and development in the field of seeds at a time when international companies conduct research on seeds that need little quantities of ordinary water and high saline water. In addition, subsidies to farmers have decreased while the prices of agricultural inputs have gone up. There are also restrictions on the terms of delivery of the harvest in the “silos” by permitting the delivery of limited quantities compared to the full capacity of the agricultural projects. This makes farmers go for delivery permits from other people who have permits but have no farms for higher amounts deducted from their profits. In this connection, it should be noted that there is a need to issue delivery permits in accordance with the production capacity of the farms. Permits should be granted only to those farmers who have actually cultivated their farms. In addition, farmers are compelled to sell their crops to the government for prices fixed by the government itself, forcing some to abandon their farms.

Production of food commodities in terms of size and type is governed by the policies of the big powers in the world, which have turned some of these commodities such as wheat, sugar, and rice into strategic commodities used as a weapon against poor or underdeveloped countries to subdue them to serve their own interests. The problem worsens in the event of international crises such as those we are currently experiencing.

WE must make the best use of the huge agricultural potentials in the Arab world by overcoming the problems that prevent the exploitation of their full use. All this must be handled in a comprehensive development perspective to make the optimum utilization of the components of the agricultural sector. Attention also must be paid to the decline of the agricultural economy in these countries, noting that agriculture is still a vital source of living for a large number of people. What is more, it has to do with food security, which affects human beings and their very existence.

It is necessary to make investment laws in the Arab countries flexible and to encourage Arab funds to achieve development and production of wheat in Arab lands using Arab water. It was recently said that in Sudan there are 70 million acres of nonexploited flat lands suitable for agriculture. What is the point in keeping these lands nonproductive?

I am afraid that this is because of the rules regarding investment procedures and the lack of incentives. In Egypt, the state granted barren lands at an encouraging price to students who graduated from agriculture colleges. Then after the graduates reclaimed the lands at their own expenses, the government asked them to pay new prices valued on the basis of reclaimed lands.

It is necessary to direct investments to projects that reduce the size of the food gap and raise the possibility of achieving food security. It is also necessary to provide financial support and technical assistance to projects designed for exports to make them more competitive in world markets and capable of meeting the subsidies provided by countries to support their exports. It is also necessary to implement procedures that protect the lives and health of humans, animals and plants. This should be done without imposing new restrictions on crops trade.

The industrialized world is also part of the problem, as they increase the demand for biofuels. For example, in Indonesia and Malaysia there is a continuous increase in the exploitation of vast agricultural areas to grow plants used in biofuels industry. Palm trees are used for production of oil. This led to a rise in the prices of vital crops needed by the people, such as corn and wheat. Therefore we must support the international institutions that fight against such practices.

We must develop food crops that give high productivity, resist diseases and need little water or accept saline water. We should also look for better ways of irrigation that keep the plants alive and do not deplete our water resources quickly. This can be achieved only through participation in international conferences and training national cadres to undertake their responsibility in this regard.

Food security keeps us away from foreign interference and alleviates poverty of the people. We must implement integrated agricultural policies in all Arab countries to bridge the gap between the production of food crops and the total demand for them. This way we will be able to achieve food sufficiency for all Arab people.

— Turki Faisal Al-Rasheed is a Saudi businessman based in Riyadh

and can be contacted at tfrasheed@goldengrass.com


News Link: http://www.arabnews.com/?page=7&section=0&article=132536&d=7&m=2&y=2010

Less prominent figures to be at 10th JEF this year
Posted by Arab News
Galal Fakkar | Arab News
Friday 5 February 2010 (20 Safar 1431)


JEDDAH: The 10th Jeddah Economic Forum (JEF) is to feature less prominent public figures and former politicians than in the past.

The emphasis will be on specialists and experts who will tackle a number of issues relating to the global economy in 2020, Abdulaziz Saqer, chairman of the Gulf Research Center (GRC), which is organizing the event, confirmed on Tuesday.

“We have this year focused on more specific speakers in order to give the forum a more specialized nature,” he said.

He said about 36 speakers from various countries including Britain, the United States, Germany, Sweden and others have confirmed their participation at the event, which is being held at the Hilton Hotel on Feb. 13-16. Over 1,200 people are expected to attend.

Speakers include Deputy Secretary of the US Treasury Neal Wolin, Swedish Minister of Trade Ewa Helena Bjorling and President of the International Fund for Agricultural Development Kanayo Nwanze, among others.

He said Makkah Gov. Prince Khaled Al-Faisal and a number of ministers will address the forum.

In addition, local speakers will also present at the event, including the Governor of the Saudi Arabian Monetary Agency (SAMA) Muhammad Al-Jasser, Secretary General of the Organization of Islamic Conference (OIC) Ekmeleddin Ihsanoglu and the chairman of the Jeddah Chamber of Commerce and Industry (JCCI) Saleh Kamel, among others.

According to Saqer, the forum will tackle nine subjects including the world economy, currency, banks and the financial sector, energy, trade, food security, science and technology, education and health.

He said academics would feature prominently at the forum, accounting for around 15 percent of participants.

Saqer said all logistic arrangements, including entry visas for attendees, have been completed.

He said the GRC center signed a contract with the JCCI to organize the forum this year and could be asked to handle the event for the next few years if it is a success.


News Link: http://arabnews.com/?page=1&section=0&article=132445&d=5&m=2&y=2010

Helpful Yeast Battles Food-Contaminating Aflatoxin
Posted by SienceDaily

Spraying a yeast called Pichia anomala onto almond, pistachios, or other nut trees is an environmentally friendly approach recently developed by ARS scientists for controlling aflatoxin-producing molds. (Credit: Photo courtesy of the Almond Board of California.)


ScienceDaily (Feb. 3, 2010) — Pistachios, almonds and other popular tree nuts might someday be routinely sprayed with a yeast called Pichia anomala. Laboratory and field studies by Agricultural Research Service (ARS) plant physiologist Sui-Sheng (Sylvia) Hua have shown that the yeast competes successfully for nutrients--and space to grow--that might otherwise be used by an unwanted mold, Aspergillus flavus.

A. flavus and some other Aspergillus species can produce troublesome toxins known collectively as aflatoxins.

Hua has received a patent for use of the yeast as an eco-friendly way to protect tree nuts, as well as corn, from becoming contaminated with aflatoxins. Standards set by the U.S. Food and Drug Administration help prevent sale of aflatoxin-contaminated food and feed.

In tests conducted in a California pistachio orchard, Hua and colleagues found that spraying the trees with the yeast inhibited incidence of A. flavus in pistachios by up to 97 percent, compared to unsprayed trees.

The yeast can also be sprayed on the harvested or stored crop instead of on trees before the harvest, according to Hua, based at the ARS Western Regional Research Center in Albany, Calif.

Besides inhibiting the A. flavus fungus, the versatile yeast may also be effective in protecting other crops against any of at least half a dozen other species of microbes that can ruin a food's taste, texture, yield, safety or other attributes. Those microbes include, for example, Botrytis cinerea, which causes gray mold of table grapes.

ARS is the principal intramural scientific research agency of the U.S. Department of Agriculture. Hua's research is one of many studies conducted at ARS labs nationwide to support the USDA priority of food safety.


News Link: http://www.sciencedaily.com/releases/2010/01/100127104859.htm

Coffs company awarded Middle East contract
Posted by
04 Feb, 2010 01:06 PM





A COFFS Harbour helicopter company has won a major overseas aerial spraying contract to help eradicate an insect pest decimating agricultural crops in the Middle East.

Precision Helicopters’ managing director Mark Hodgson confirmed yesterday his company had been given the go ahead to help wipe out the pest currently attacking one of Oman’s major agricultural crops, date palms.

Mr Hodgson said a delegation from Oman visited the local business recently, awarding Precision Helicopters the contract over several other Australian, New Zealand and South African operators who also tendered for the work.

He said the contract was initially for 12 months, with options to extend for five years.

“The company has grown and we’re excited to have won this contract,” Mr Hodgson said.

“Five or six of our staff will have to accompany the helicopters, but we’ve also employed more staff, which is great news, too”

Staff were yesterday dismantling the two JetRanger helicopters that will be sent to Oman.

“It’s all hands on deck as the packing gets under way,” Mr Hodgson said.

“The helicopters are to be partially dismantled and packed into shipping containers, along with spray booms and enough spare parts and self-contained field equipment to keep them going.”

Mr Hodgson said the company would have other helicopters based in Coffs Harbour to continue servicing regular clients and visitors to the Coffs Coast.

Precision Helicopters has been based at Coffs Harbour Regional Airport since 2003. The company was established in 1993 and moved from its Barraba base seven years ago.

The company has six helicopters – three are single-engine turbine used mostly for aerial work operations, one single-engine piston used for training and some light aerial work operations, and two twin-engine turbine craft for larger tasks.

The company provides a wide range of services, including aerial agriculture work, aerial spotting, aerial stock mustering, powerline work, feral and diseased animal control, sling load operations, flying training, aerial surveying, aerial photography and scenic joy flights.

Last year Precision Helicopters teamed up with the National Parks and Wildlife Service to ferry passengers to South Solitary Island during an open day on the significant Coffs Coast landmark.


News Link: http://www.coffscoastindependent.com.au/news/local/news/environment/coffs-company-awarded-middle-east-contract/1742547.aspx

Almond Tree's Secret Weapon
Posted by Science Daily

ScienceDaily (Feb. 2, 2010) — Has the almond tree developed a unique way of drawing potential pollinators? A group of researchers at the Department of Environmental and Evolutionary Biology and the Department of Science Education at the University of Haifa-Oranim speculate that the toxin called amygdalin that is found in almond tree nectar is in fact an evolutionary development intended to give that tree an advantage over others in its surroundings.

Previous studies have already shown that amygdalin can be found in almond nectar at a concentration of 4-10 milligrams per liter. It also known that the almond tree is the only plant to have this toxin in its flowers' nectar; in fact, the tree's subgenus classification is Amygdalus, after the toxin it produces. For small mammals this is a deadly substance and as it is highly concentrated in the seeds of unripe wild bitter almonds, these almonds are also dangerous for human consumption.

A group of researchers, headed by Prof. Ido Izhaki along with Prof. Gidi Ne'eman, Prof. Moshe Inbar and Dr. Natarajan Singaravelan, investigated why it is that this plant produces such a potent toxin -- a by-product of which is cyanide -- in its nectar. They explain that the presence of amygdalin in the nectar is seemingly incompatible with the nectar's purpose of attracting insects to the flower to extract food and pollinate it and thereby contribute to the plant's reproduction.

The researchers exposed honey bees to plates of nectar that had varying concentrations of the toxin and a plate of nectar without the toxin. The team first monitored four different amygdalin concentrations, resembling the natural levels of the toxin in almond tree nectar: 2.5-10 milligrams per liter. A second experiment monitored levels much higher than those found in the natural form: 5-50 milligrams per liter. In both cases and for each of the compositions, the bees preferred nectar containing amygdalin over the amygdalin-free option.

"It is difficult -- and sometimes impossible -- to determine the workings of evolution, but it is likely that amygdalin is produced in the almond nectar so as to give the almond tree an advantage in reproduction. Based on our observations, we can make a guess at which mechanisms come into play for amygdalin to provide this advantage," Prof. Izhaki explains.

For example, even though amygdalin is poisonous for mammals, it is not poisonous for insects, such as the honey bee, and it even produces a stimulant that attracts such insects. Therefore, it is possible that the plant produces it so as to attract potential pollinators.

Another possibility is that the almond tree has developed this substance in its nectar as a form of filter: it repulses "non-expert" pollinators, but gives access to the "experts" that have built up resistance to the toxin while providing efficient pollination services for the plant.

The research team, in collaboration with Dr. Malka Halpern, Dr. Yoram Gerchman and research students Svetlana Friedman and Yana Gerstein, are presently examining the possibility of there being an additional mechanism in play: that the nectar toxin prevents inhabitation of bacteria that could spoil the nectar's quality and harm its appeal for potential pollinators, thereby impeding the tree's chances of pollination.

"Pollinating insects have always been lacking, so plants have had to develop ways to take the lead in attracting those that are available, in competition with other plants. Otherwise, they will not be able to reproduce. This is more than just a hypothesis: it is a very practical theory. For reasons that are not fully clear, there is a significant shortage of bees in the world. The worldwide scarcity of available pollinators severely harms agriculture and threatens supplies of produce for the human population. In California there are enormous almond groves that without bees will not produce fruit. Due to the scarcity of bees, the almond farmers in California are compelled to import -- from as far away as Australia -- truckloads of beehives during the almond's flowering season, so as to ensure pollination," Prof. Izhaki stated.


News Link: http://www.sciencedaily.com/releases/2010/01/100128091750.htm

Small Saudi businesses among world’s most confident: HSBC
Posted by Arab News
Wednesday 3 February 2010 (18 Safar 1431)


JEDDAH: The Kingdom’s small businesses are among the most confident in the world, according to a new survey by HSBC, the global banking associate of SABB.

“Global Small Business Confidence Monitor,” a study by HSBC of more than 6,000 enterprises in 20 key markets, showed that Saudi Arabia’s small-scale business sector was especially optimistic about growth prospects for the Saudi economy, increasing capital expenditure in their own operations, enlarging their workforce and expanding their international business.

The survey confirms the results of another HSBC study published last month of business confidence among leaders of larger companies in the region. Saudi Arabia came top in that poll.

Of the 300 Saudi companies participating in the new survey, 86 percent see the Kingdom’s economy growing at or above the current rate, with more than half predicting a growth of at least 4 percent over the next 12 months. Only 14 percent believed the economy could slow down.

More than half of those companies involved in cross-border and international trade believe that this part of their business will grow over the next 12 months, particularly with the rest of the Middle East, South East Asia and Europe. Fewer companies expect their trade with China and India to expand as fast.

“It is highly encouraging to find the two HSBC surveys showing high levels of optimism across the whole spectrum of Saudi Arabian business,” said Adel Al-Nasser, deputy managing director of SABB.

“We, at SABB, share that confidence and will continue to give the financial support to the country’s commerce and industry necessary to fuel the further expansion of the economy,” he said.


News Link: http://arabnews.com/?page=6&section=0&article=132299&d=3&m=2&y=2010

Wheat output drops faster than planned
Posted by Arab News
Souhail Karam | Reuters
Wednesday 3 February 2010 (18 Safar 1431)

RIYADH: Saudi farmers are abandoning wheat cultivation faster than the government had anticipated under a plan to save dwindling water resources, Agriculture Minister Fahd Balghunaim said in an interview on Tuesday.

Saudi Arabia became a major buyer of wheat on global markets after starting the phase-out program, to be run over eight years, in September 2008.

“In two years, since we launched the wheat reduction plan, planted area fell 40 percent, which is faster than we had anticipated,” Balghunaim said.

“We were considering an annual drop of 12.5 percent in planted areas,” Balghunaim said, in the first official comment on progress of the output reduction program since its launch.

Saudi Arabia announced in January 2008 that it would cut domestic wheat production by 12.5 percent a year to conserve scarce water supplies and would rely entirely on imports by 2016.

Before this measure was taken, the Kingdom had ensured self-sufficiency for three decades.

“Our wheat production last year fell to about 1 million tons ... Our annual needs stand at about 2.5 million tons of wheat, hard wheat that is,” Balghunaim said. He did not give a comparative figure for the wheat harvest in 2008.

The Saudi wheat harvest in 2009 was lower than the 1.2 million tons the US Department of Agriculture had expected and 1.7 million tons the Kingdom produced in 2008, according to the USDA.

In its first import campaign, the Arab world’s biggest economy imported 2.2 million tons of wheat, the biggest chunk of which was hard wheat of Canadian origins.

Waleed Al-Khariji, who heads the Kingdom’s grains authority (GSFMO), has said Saudi Arabia would import 3 million tons of wheat per year up to 2016.


News Link: http://arabnews.com/?page=6&section=0&article=132297&d=3&m=2&y=2010

Developing Agriculture in Eastern Region Key Priority
Posted by Zawya
SANA (Syria Arab News Agency)
31 January 2010

Damascus - Syrian government has been putting great efforts to find strategies for regional development given its considerable contribution to the production of strategic crops, mainly cotton, wheat, lentil and barley.

Despite the special attention paid to developing the Eastern region in Syria, the process of industrial development in the region is still in its early stages compared with the big industrial plans in Damascus and Aleppo.

Based on the regional development plan for the Eastern region prepared by the Municipal Administration Modernization program, agricultural development in the region requires big budget and better efficiency in using the limited water resources available by means of using drip irrigation and promoting cultivation of alternative crops like olive trees.

Lands irrigated from the Euphrates cover an area of 106.500 hectares. However, lands irrigated by wells cover only 40.000 hectares, and they do not usually pay off due to the high costs of agricultural production over the past two years.

Approximately, 80 % of the population of the eastern region work in agriculture. Agricultural survey of the region indicates that the percentage of families who own 10 hectares is less than 2 % of people working in agriculture. Families who own 1 to 1.5 hectares make 70 %. There are 28 % of the families who own no more than 0.5 hectare or none.

Some economists say that developing the agricultural situation in the eastern provinces is key priority for development in the region as it helps secure job opportunities and put an end to the migration of farmers from their villages. Those economists count on the fact that the Eastern region has vast arable plains of high fertility that are not yet utilized.

Over the past years, the Eastern region contributed by 56 to 58 % of the country's total wheat production yielding between 2.350 to 2.870 tons in 2003-2007. However, due to bad weather conditions, wheat production in the region fell to 1.3 thousand tons in 2008.

The percentage of cotton production in the region varies between 67 to 68 % of the country's total production, whereas yellow corn makes 62 to 72 % of Syria's total production, and it is basically located in the provinces of al-Raqqa and Deir Ezzor due to abundant water resources provided by the Euphrates.

By Haifa Said /Mazen Eyon

© SANA (Syria Arab News Agency) 2010

News Link: http://www.zawya.com/Story.cfm/sidZAWYA20100201052046/Developing%20Agriculture%20in%20Eastern%20Region%20Key%20Priority/