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Food security could strengthen economic growth and social stability. Essa Al Ghurair, Chairman of Al Ghurair Resources, urges industry stakeholders to invest in the region's food security -- which is a shared responsibility of everyone
Ras Al Khaimah - Food security has gained momentum in the Gulf region with massive investment by the public and the private sector.
Gulf countries that import up to 90 per cent of their food from abroad, have recently increased investment in food-growing farms in Asia and Africa as well as started to built strategic food reserves.
Population of the GCC countries is expected to cross 53.5 million in 2020 from 36 million today while their food import bill is expected to double from US$24.1 billion in 2009 to US$53.1 billion by 2020, according to Alpen Capital's latest reports on healthcare and food security.
The food consumption in the region will expand at a compound annual growth rate (CAGR) of 3.1 per cent over 2012-17, reaching 49.1 million metric tonnes by the end of 2017, according to Alpen Capital.
Per capita food consumption for the GCC region is forecasted to reach 971.2 kilogramme by 2015 and 983.0 kilogrammes 2017.
This increase is attributed to the rapidly growing population in the GCC, increase in foreign tourists as well as the rising income levels of the region.
Although nominal GDP is forecast to soar to over US$2 trillion in 2020, the ability of the GCC governments to ensure food security would largely depend on cash reserves.
"Global Warming, Food Security and Sustainability are some of the focal issues that countries in the Gulf are trying to tackle. Food security could help socio-economic development and strengthen stability in the region," Essa Al Ghurair, Chairman of Al Ghurair Resources, said at a conference here.
Food security can be described as the sufficient availability, access and use of food or nutrients, which ensures survival and growth of the human population.
The World Health Organisation (WHO) defines food security to exist "when all people at all times have access to sufficient, safe, nutritious food to maintain a healthy and active life". With a fast growing global population, food production has to also intensify substantially from less available land due to urban expansion and land degradation, in order to meet future food needs.
This makes food security arguably one of the greatest challenges the world is facing and directs to the importance of optimising available land productivity.
Food security is fast becoming a focus for Gulf countries, who have already increased strategic food storage and invested in agriculture overseas.
"As we embark on an exciting journey where our country prepares for the next phase of development to become a smart and happy nation guided by the Government's Vision 2021, food security could help strengthen our ambitious journey ahead," Al Ghurair told delegates and experts at the Third International Conference on Global Warming: Food Security, organised by the Environment Protection and Development Authority (EPDA) of Ras Al Khaimah.
"Food security is a shared responsibility."
Public and private sectors in the Gulf countries have already made steady progress in facing the food security and climate challenges issues. Over the last few years, governments and the private sectors have undertaken a number of initiatives to create greater awareness on the subject and prepare to face the challenge of food security, climate change and sustainability head on.
The UAE has been very active in its efforts to ensure food security. The country is also promoting the development of aquaculture projects and improving food security through purchase of arable lands in East Africa, Southern Europe and South Asia. Al Dahra, a private firm, which seeks to partner with UAE government to ensure food security, acquired 8 agricultural companies in Serbia.
Al Ghurair Foods and Al Ghurair Resources along with its holding company -- Al Ghurair Investment LLC -- has realigned businesses to support the social and economic needs of the UAE in line with the UAE government's vision to create a healthy, prosperous and a happy nation by investing in critical businesses such as food and commodities.
Over the last few years, the company has created a strong food production, storage, transportation and supply infrastructure across the region to ensure uninterrupted and sufficient food supply to feed the population.
Al Ghurair Resources is the agricultural commodities arm of Al Ghurair Investment and the largest grain unloading and handling operators in the Middle East. The company currently runs one of the largest food grain processing, transportation, storage and logistics base in the Middle East. It has a 300,000 grain storage facility as well as operate the largest soya and canola seed crushing plant in the Gulf.
It's flour mill has a capacity to produce 2,000 tonnes per day while the soya crushing plant produces 4,000 tonnes of soyabean oil per day.
Additionally, its edible oil refinery refines 300 tonnes per day. The company's legumes plant produces 100 tonnes of oats per day while it also process 100 tonnes of pulses -- yellow peas -- per day.
Al Ghurair also produces 200 tonnes of animal feed per day.
In March this year, the company handled 301,750 metric tonnes of food commodities -- a record high level in the country's history. Al Ghurair Resources owns two terminals at the Port, known as Berths No. 3 and 7 - and it was their combined performance that delivered the biggest monthly offload figures ever recorded by the company.
To achieve the March 2015 figure, a total of nine unloading vessels were handled during the month - 7 Panamax and 2 Supramax. These reflect the company's continuous capacity development to support the UAE's food security.
The company has invested significant resources in developing Al Jabal Poultry Farm -- part of Al Ghurair Foods -- to ensure domestic production and supply of poultry products and reduce the UAE's dependence on imported food.
Established in 2003, Al Jabal Poultry Farm has a production capacity of more than 210 million eggs per year employing 110 people.
As a green and sustainable poultry farm, it composts all manure and other organic waste. The company also incorporates the organic waste of Al Ghurair Foods and Al Ghurair Resources and sells them as a fertiliser. It has a complete composting system with minimal environmental impact, which exceeds world standards.
The chicken feed is sourced from its own feed mill where the principal ingredients are maize, soybean meal, Canola and flaxseeds sourced from long term trusted suppliers.
Al Jabal Poultry Farm strives to be the first port of call for the nation's freshest most trustworthy quality eggs as well as food safety and hen welfare. The eggs of Al Jabal Poultry Farm are produced in the most economical way with the least environmental impact, as part of the group's corporate social responsibility.
Al Jabal Poultry Farm has recently started to produce Omega eggs -- the vitamin enriched eggs for healthy life.
"As an environmentally friendly and sustainable business, we are working hard to reduce our electricity consumption with specific actions, We convert all our waste into fertiliser for the nation's farms, gardens and municipal parks and green areas," Al Ghurair says.
"This is one example of how Al Ghurair Investment creates additional value for the UAE society and the nation and the well-being of its consumers in a responsible and sustainable manner."
All of these efforts are also in line with the stated objectives of the Environment Protection and Development Authority. As a UAE national company, it wants to engage in responsible business practices that will support the UAE's greater economic vision and ensures social sustainability.
Important Note
1. Gulf countries import up to 90 per cent of their food from abroad.
2. Per capita food consumption for the GCC region is forecasted to reach 971.2 kilogramme by 2015 and 983.0 kilogrammes 2017.
3. Food import bill of the countries in the Gulf region will double from US$24.1 billion in 2009 to US$53.1 billion by 2020.
4. Population of the GCC countries is expected to cross 53.5 million in 2020 from 36 million today.
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About Al Ghurair
Al Ghurair is one of the largest diversified industrial enterprises in the Middle East, with global reach and business roots stretching back half a century. The group has interests in wider economic areas with focus on foods, construction, resources and properties with additional sector participation in retail, printing, energy and education.
Al Ghurair, that has a strong presence in more than 20 countries on four continents, is synonymous with the UAE and has been part of its rich heritage. With a history of pioneering innovative businesses built upon excellence, trust and responsibility, we have a deep commitment to enhancing life in the communities we serve.
For more information, please contact:
Sameera Fernandes
Head of Corporate Affairs and Communications
Al Ghurair Investment LLC
P.O. Box: 6999, Dubai, UAE
Tel : +971 4 2029783
Fax : +971 4 2942664
Email : Sameera.Fernandes@al-ghurair.com
Web : www.al-ghurair.com
© Press Release 2015
