JEDDAH -- The success of the Saudi agricultural sector over the past few years has enabled the Kingdom to achieve self-sufficiency in major areas and has put more pressure on a national marketing system that needs to develop in order to cope with local and international changes, Minister of Agriculture Dr. Fahd Balghnaim said.
The agricultural sector accounts for 8.3 percent of the domestic growth of the non-oil sectors and employs around 7.7 percent of the overall work force in the Kingdom. Its role has enabled the Kingdom to achieve self-sufficiency in strategic agricultural produce and ensured food security for both Saudis and residents, the minister told a symposium held in Riyadh on the future prospects for developing agricultural marketing. In 2003, the Kingdom produced 2.5 million tons of wheat, thus achieving self-sufficiency of this strategic commodity, 2.2 million tons of vegetables and 1.3 million tons of fruit. Production of dates, eggs and dairy products now exceeds local consumption.
"The successes in the agricultural sector over the years in terms of production have increased the burden on the marketing system at a time when marketing services and other related activities have been on the rise due to accelerated changes taking place at both the local and international levels. This calls for improving the productive qualities of agricultural products while focusing on the competitive edge enjoyed by the Kingdom. The competitiveness of the marketing system has to be increased if Saudi products are to be able to face competition from other countries."
Driven by the national self-sufficiency policy and the needs of a growing population, the agricultural sector has been experiencing high growth. The current Development Plan of the Kingdom (2000-2005) offers financial support for technologies and products that improve productivity, develop new areas for farming, improve the quality of output and conserve water. More than SR3.5 billion for loans through the Agricultural Bank has facilitated the purchase of modern agricultural equipment and machinery. These incentives are supporting 44 new farming projects.
Dr. Balghnaim said the notion that the focus has to be on production should change with more emphasis put on marketing techniques to meet local as well as foreign market needs. This in turn calls for opening new markets to Saudi agricultural exports while benefiting from the Gulf standards governing agricultural products.
The agriculture industry continues to grow at 8 percent annually, driven by the massive population increase and the increasing demand for food and food-related products. This makes the Kingdom the Middle East's largest market for agricultural products and technologies. Over the years the Kingdom has implemented important initiatives to develop the agricultural sector, recognizing its vital role in the drive to become less dependent on imports and meeting the needs of its population.
The Kingdom ranks among the top 10 countries worldwide in poultry consumption. Since most poultry is imported, the focus is now on expanding local production, which in turn, has increased the need for imported feed. Poultry production, feeds and additives and processing and packing equipment are in great demand.
Domestic production of beef and veal has increased by more than 50 percent in the last few years. The Kingdom now produces over 42,000 tons annually with 23,000 sheep being consumed daily. Over half a million tons of milk a year is produced, although most cheeses are still imported. Livestock and dairy farming products and technologies are increasingly sought after.
The minister said an advanced center for the production and marketing of dates will be established by the Council of the Saudi Chambers of Commerce and Industry in cooperation with the Ministry of Agriculture. The objective is to improve productivity in terms of quality and quantity and develop new marketing strategies and techniques.
The rising population and the harsh climate for cultivation means that management and protection of the Kingdom's precious resource, water, is vital in order to sustain further growth and development. The increasing demand on water supplies has led to major initiatives by the government for recycling and conservation.
Date production grew to more than half a million tons by the mid 1990s. Much of this is used as international humanitarian aid. Several factories are dedicated entirely to the production of dates for foreign aid and send tens of thousands of tons of dates each year to relieve famine and food shortages in Arab, Islamic and other nations.
A large portion of Saudi Arabia's wheat production is also provided as assistance to needy countries. At least 16 countries have directly benefited from Saudi Arabia's food aid offered through the United Nations World Food Program. The Kingdom is second only to the United States in contributions to that program.
Abdul Wahab Bashir
© Arab News 2005
