The food security policy has many prisms and government policies that seek the whole picture and wide ranging solutions are the likeliest to manage their buffer stock well
MUSCAT — The issue of food security has gained remarkable importance following the 2007-2008 food crises and is today firmly on the front burner for the MENA region and its governments.
According to an in-depth and enlightening report on Food Security, called “MENA Food Security: are we doing enough to feed the population”, issued by Al Masah Capital, concrete moves are being made to ensure that the lessons of the past have been learnt and the mistakes will not be repeated. The MENA region is acutely aware that these steps have to be taken to ensure there is no price shock like the one experienced five years ago. Essentially, the error lay in the food suppliers to the region, restricting exports and thereby forcing this cluster of countries to buy food from the international market at much higher prices.
According to Shailesh Dash, Al Masah Capital's CEO, “It was a sobering thought and a real eye opener that the rise between March 2007 and March 2008 was an unprecedented 59 per cent with oils and fats showing an incredible mark up of 106 per cent and cereals reaching 83 per cent.”
For these reasons alone, Saudi Arabia made concerted efforts to purchase as much as two million tonnes of wheat from the US for delivery in two months making sure it could double its grain reserves and keep its prices constant well into 2014. Dash believes this forward thinking attitude underscores the concerns for food security and other MENA nations are likely to follow suit so their reserves are adequate insurance against runaway price rises.
The MENA region is exceptionally sensitive and vulnerable because of the limited arable land (only 3.9 per cent) and the shortage of water. As a result, even in the best of times it is forced to import 50 per cent of its food MUSCAT — The Wave, Muscat has announced that over 75 per cent of its latest residential offering, Almeria East, has been sold since its first debut in October 2011.
The 92 apartments spread over three boutique buildings have been met with great enthusiasm due to their unique characteristics and ideal location within the 6 km mixed-use development that overlooks the pristine Sea of Oman.
Investors across Oman and the GCC region have been attracted by the strong yields on residential properties at The Wave, Muscat as well as the advanced delivery of the lifestyle amenities such as the beach parks, the golf course, marina and retail precinct. Michael Lenarduzzi, CEO of intake. It is no surprise then that as the population increases so does the food import bill. With an average of 4 million additional people each year needing to be fed, ‘more’ is the only label where food production and delivery are concerned. Marked at $61.4 billion in 2008 the demand is projected rising to $92.4 billion by 2020.
Several countries in the region have embarked on a concerted effort to invest in farmlands abroad, creating strategic food reserves and forming food security policies.
Qatar, Saudi Arabia, the UAE, Egypt, Libya and Kuwait spearheaded the initiative and approximately 45 million hectares of farmlands were ‘reserved’ in 2009 alone.
The key objectives of Qatar food security policy also referred to as the Qatar National Food Security Program (QNFSP) make for an interesting study and could well be the role model for other countries to follow.
The food security policy has many prisms and government policies that seek the whole picture and wide ranging solutions are the likeliest to manage their buffer stock well. Attention to food technology, seeding methods, hybrid crop turnover, post harvest processing, rapid supply chain systems, better irrigation and a greater awareness of weather patterns combined with quick turnover of crops are all elements in the equation. Also, one of the aspects often ignored are the dietary traits that impact directly on costs. For example, it is more expensive to generate meat produce because of the need for more water than it is to produce grains.
Encouragement to the private sector be it in intermodal transportation, refrigeration, farming, warehousing, storage, research, processing foods and irrigation is essential and a major factor so future policies will have to give the food entrepreneur a much deserved importance in tomorrow’s scheme of things.
The range of foodstuffs is vast and their sources complicated and diverse. Wheat, sugarcane, tomatoes, potatoes, milk, chicken meat and olives were found to be the most prominent among the several food items produced in the MENA region; for the rest the dependence is on major trading partners like with France, North America (including US and Canada), the Russian Federation, Ukraine, Argentina, India, Brazil and Australia, with demand for maize, barley, raw sugar, rice etc figuring prominently.
While the role of technology will be fundamental, according to the Al Masah report, the role of international agencies like the World Bank, United Nations and International Monetary Fund in creating easy and varied avenues for investment by individuals and corporations as well as governments will be no less important in keeping the wolf from the MENA door.
In a clear, candid manner, the Al Masah report “MENA Food Security: are we doing enough to feed the population?” highlights an important issue for the future generations of this region and offers a compelling reason to make this a major government priority going forward. The Wave, Muscat said, “The Omani Government's commitment to infrastructure spending on roads, water projects, port facilities and airports underpins the confidence in the economy and population growth — all major drivers of the property market. The budget allocation for tourist projects signifies the importance to continue investing in the non-oil sector to achieve sustainability and His Majesty’s Vision 2020.”
He added, “Owners and tenants are looking for more lifestyle features in their homes and are prepared to invest in quality, comfort and a community-based way of life. There are many buyers from all over the world who have either worked or lived in Oman