Ramsco's Women Empowerment Initiative Recognized Among Top BRICS Businesswomen Practices for 2025    Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    Gold prices end July with modest gains    Pakistan says successfully concluded 'landmark trade deal' with US    Egypt's FM, US envoy discuss Gaza ceasefire, Iran nuclear talks    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Federal Reserve maintains interest rates    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    Rafah Crossing 'never been closed for one day' from Egypt: PM    I won't trade my identity to please market: Douzi    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt's EHA, Huawei discuss enhanced digital health    Egypt, Oman discuss environmental cooperation    Egypt's EDA explores pharma cooperation with Belarus    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Planting New Seeds in Saudi Arabia
Published in Daily News Egypt on 29 - 04 - 2010

JEDDAH: Saudi Arabia's agriculture sector is in a period of great transition. The government has identified five key segments to focus on as water conservation and use policies take a more prominent role in decision-making. With arable land scarce, the future for agriculture in the Kingdom is likely to involve international cooperation, food security agreements and investment abroad.
During the 1980s the government aggressively pursued a policy of self-sufficiency, encouraging farmers to grow crops such as wheat, and subsidizing them by paying a high price for their output. This policy eventually ran into the reality of water scarcity in the Kingdom. According to the Food and Agriculture Organization of the UN (FAO) in 2006, agriculture accounted for 88 percent of water use in Saudi Arabia, with municipalities and industry accounting for the remaining 9 percent and 3 percent, respectively.
Now, the government is in the process of revising its plans for agriculture for the years and decades ahead, maintaining a focus on self-sufficiency while keeping an eye to long-term water sustainability. Dr Fahad Balghunaim, Saudi Arabia's minister of agriculture, told OBG that in the future he sees at least five segments in the agriculture sector that can be sustainable and in which the country can be competitive. The five are poultry, aquaculture, greenhouse agriculture, technology and dairy production.
Saudi Arabia already has some of the world's most advanced and efficient dairy farms. Although local consumption is low, at 60 liters per year per capita compared with 120 in Europe, the large youthful population presents a great opportunity for producers. Abdulaziz Al Babtain, the chief executive of the National Agricultural Development Company, the first agriculture company in the Kingdom established by the government in 1981, told OBG that consumption patterns have changed over the past years. "We see greater demand for single-serve portions, whereas in the past dairy producers sold three-liter bottles of milk, so we must keep up with the changing market requirements."
Abdulrahman Alfadley, the chief executive of Al Marai Company, the largest vertically integrated dairy farm in the world, told OBG that he "would like to see an increase in dairy consumption in Saudi Arabia. Currently, the country is one of the lowest per-capita consumers of dairy in the world and we are trying to increase this level through raising awareness and offering quality products at competitive prices."
Poultry is another area with strong local demand. According to the FAO, poultry is the main meat consumed by weight in Saudi Arabia, with the country ranking among the highest consumers of chicken per capita in the world, and consumption rates are still increasing. "Saudi Arabia is 50 percent self-sufficient in poultry production and there is more opportunity for growth in this segment," adds Balghunaim.
Aquaculture is a natural fit for the Kingdom due to its nearly 2000-km coastline on the Red Sea, not to mention the Gulf. Saudi companies are already raising and exporting shrimp to over 30 countries around the world, and the National Prawn Company has been certified by Japanese authorities – the world's most stringent – to produce sushi-grade prawns for the Japanese market.
Greenhouse agriculture and technology are two areas where Saudi Arabia has great ambitions for the future. The country is currently developing new farming techniques through the Sustainable Agriculture Research and Development Centre, and working on technologies and techniques for arid climates that it hopes to export to other nations.
When talking about agriculture in the Kingdom, one cannot avoid the subject of water, particularly its scarcity and the long-term implications for the sector. "Saudi has scarce water resources," says Zouhair Eloudghiri, the chief executive of food processor and distributor Savola Foods. "It would be dangerous to use this resource for agriculture instead of saving it for future generations. We can buy wheat from Australia but not drinking water."
Indeed, water scarcity is one of the main drivers for the government's push to internationalize the Kingdom's food supply through food security agreements, cooperation with other nations and overseas agricultural investment.
In March, Thai Prime Minister Abhisit Vejjajiva announced the signing of a memorandum of understanding establishing the Thailand Food Security Stockpile and Distribution Center (TFSSDC) in Bahrain. The TFSSDC will strive to ensure the food supply chain to the entire Gulf Cooperation Council (GCC), using Bahrain as a gateway. "We have a huge agriculture base and would be in position to ensure enough food stockpiles for the entire GCC," said Vejjajiva. Additionally, Saudi Arabia and Tunisia also recently agreed to begin cooperating in various spheres related to agriculture.
Acquiring land abroad for agricultural purposes is a controversial topic. Many countries with scarce arable land have considered or initiated land lease or purchase agreements with other nations, but opinions remain divided on the long-term viability of such deals. Whether, for example, governments would allow agricultural exports in time of shortages remains an unanswered issue.
"There is great potential for local agriculture companies to invest in farm land abroad. Through this backwards integration local companies can access raw materials directly, reducing exposure to price volatility on the international markets. Future agriculture hectares for Saudi Arabia will be outside of the country," says Abdulmalik Abdulah Alhusseini, the executive president of agricultural services company ARASCO.
Eloudghiri remains more cautious. "Farming is very investment-intensive, has a very long-term return and has geopolitical implications. Saudi companies will need to secure ownership stakes or multilateral treaties to ensure crop delivery," he told OBG.
To this end, the privately funded SR2bn ($533 million) International Agriculture and Food Investment Company (Agroinvest) was launched in 2009, focusing on domestic investment and farm acquisitions abroad. The Saudi Industrial Development Fund has also been providing financing to companies looking at overseas agricultural investments.
There is no single solution to food security in Saudi Arabia. The long-term answer will likely require some combination of focused and efficient use of land and water at home and various types of agreements, cooperation and investment abroad. With a growing population and scarce resources, the time for the agricultural transition has arrived.


Clic here to read the story from its source.