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Change needed in GCC agriculture, as value of region's food imports grows 18 fold in ten years

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Mar 17, 2013
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Countdown begins for AGRA Middle East; three dedicated industry conferences, awards programme among show highlights

Dubai, UAE, 17 March 2013: With GCC food imports costing 18 times more than 10 years ago, and water availability set to reach acute levels by 2025, change is needed if the region is to maintain a long term sustainable agriculture system, an expert has said.

Nicholas Lodge, Managing Partner of Clarity, the UAE-based financial consulting firm focusing on investment in food, water and energy said that the cost of food imported into the GCC has increased from US$2 billion in 2002 to US$36 billion today.

A speaker at the Agribusiness Outlook Forum, taking place alongside AGRA Middle East, which runs from 26-28 March at the Dubai International Exhibition Centre, Lodge said that more than 85 per cent of GCC food is currently imported, while natural water resources in the region are expected to reduce by 50 per cent by 2050.

“The UAE and Saudi Arabia use around five to six times the amount of water per capita compared to the UK, which has adequate water supplies,” said Lodge. “In the GCC, 80 per cent of the water used is for agriculture, which represents only 2 to 5 per cent of the GDP for the entire region and only produces in the range of 5 to 15 per cent of the food requirements.”

“For a long term sustainable agricultural system the efficient use of water is key and much of the GCC agricultural methods do not reflect the loss of available water resources over the past 50 years. Rather than continue to support these through subsidies and other artificial interference, change is needed.”

Added Lodge: “This may well result in certain farming activity ceasing in the region. For example, to produce one kilogram of dates can require more than 3,000 litres of water. This water is now likely to be produced artificially using desalination, whereas 20 years ago it was naturally occurring groundwater.”

Lodge will be speaking at the Agribusiness Outlook Forum about approaches to sustainable food security in the GCC. He said that with the heavy reliance on food imports into the region, both private and government sectors have been busy acquiring land in developing countries to bolster their food supply stocks.

According to International Food Policy Research Institute, 50 million hectares of land (equivalent to twice the size of Britain) in developing countries was acquired, leased or otherwise under negotiation for agricultural purposes in 2010.

“Over the past 10 to 15 years, it is safe to assume that GCC countries along with investors from other parts of the world, government and private alike, have spent billions of dollars in securing and developing tracts of land that together represent millions of hectares of agricultural land,” Lodge said.

Held under the patronage of His Excellency Dr. Rashid Ahmad Bin Fahad, Minister of Environment and Water, AGRA Middle East is the only show in the region covering agribusiness, poultry & livestock, fishing & aquaculture, floriculture & horticulture and agricultural machinery & supplies, providing an all-in-one platform for exhibitors to showcase their latest innovations, products and services to an audience of key regional decision makers.

In addition to the Agribusiness Outlook Forum on 26 March, AGRA Middle East will host the Poultry Outlook Forum on 28 March, and the inaugural Middle East Horticultural Summit, also taking place on 26 March.

The 2013 edition will also mark the launch of the first AGRAme Awards, recognising individuals, departments, teams and organisations that have contributed to the growth and development of the agricultural industry with focus on best practices and innovative approach.

AGRA Middle East is co-located with VET Middle East, the leading event for the burgeoning veterinary industry in the region, presenting an opportunity for international suppliers and local distributors to showcase latest technologies, equipments and medicines in the veterinary sector.

Ends

For further press information please contact:

Gareth Wright / Sharrah Kapadia
Total Communications
Tel: +971 4 428 1502 Mob: +971 50 273 3832
Email:  gareth@totalcompr.ae /  sharrah@totalcompr.ae

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