Saudi firm moves toward 100% use of imported animal feeds

Updated 15 April 2014

Saudi firm moves toward 100% use of imported animal feeds

The Almarai Company has decided to stop the cultivation of fodder for animals and import it from abroad instead owing to the scarcity of water sources in the Kingdom.
Abdul Rahman Al-Fadhli, CEO of Almarai, said the company currently imports 100 percent of the animal feed to produce milk. Almarai is also developing an operational plan to stop the local cultivation of fodder and cover the entire needs of the domestic market by importing all products.
“Almarai is the first dairy company in Saudi Arabia which has started importing feed from abroad where the company has invested in Argentina, the United States and several European countries,” Al-Fadhli said.
Almarai has recently received the first shipment of feed estimated at 39 thousand tons coming from farms owned by the company in Argentina.
According to a recent scientific study 96 percent of water consumption in the dairy sector is provided for the cultivation of fodder, while this percentage can be provided through a plan to import feed from abroad. The study that was conducted by Saudi researchers in cooperation with specialized US companies estimated that the amount of water consumed in the dairy sector accounts for about 3.1 percent of the total consumption of the agricultural sector which consumes 16 billion cubic meters a year.
Meanwhile, the Saudi government has decided to invest in agricultural development abroad and strengthen Saudi Arabia’s position in this regard. Experts claim that the project, entitled the King Abdullah Initiative for Saudi Agricultural Investment Abroad will help secure national food security.
Dr. Riyadh Abu Mansour, an economic expert and CEO of Al-Belad Company for Investments said, “Several Saudi food firms had invested in Sudan, Lebanon, Syria and Egypt but the bad political situation of these countries had forced Saudi investors to look for other alternatives. Pakistan is one of these options especially as there are many Saudi agricultural investments which have seen successful results during the last ten years.”
Speaking to Arab News, he said “About 25 percent of Saudi agriculture firms have also started investing in Australia to import wheat, while there are other local firms which are interested in investing more in EU countries.”
Until six years ago, the Kingdom’s policy makers advocated self sufficiency for its local wheat cultivation, as well as some other products such as milk, meat and eggs. However, as it became clear that levels of subsidies required for farmers and limited water resources were making domestic wheat production unviable, the government decided to gradually wind down operations and opt instead to meet their wheat requirements through imports.
The Kingdom is expected to phase out domestic wheat production completely by 2016 as farmers are encouraged to shift their focus toward alternative crops. At the same time, wheat imports are increasing rapidly as the government looks to bridge the widening gap between falling domestic production and rising demand. Saudi Arabia is expected to import 1.96 million tones of wheat for human consumption within the period 2012 to 2014, according to estimates of the local office of the US Department of agriculture.
“Agriculture investments abroad depend on buying a large area of land in countries which have natural sources to develop an agriculture industry. Therefore, the best way to ensure food security is to invest in those countries through buying agriculture lands,” Dr. Naser Al-Boqami told Arab News.
A number of Saudi companies decided early to invest in Sudan as is evident from the recent acquisition of agricultural lands covering an area of approximately 4,000 acres in Sudan’s northern region by four Saudi companies to raise various crops. The region has so far attracted 32 investment projects from the Arabian Gulf countries, covering an approximate area of 14 million acres, all located in the upper areas of the river Nile.


Emirates airline to cut up to 9,000 jobs: report

Updated 8 min 50 sec ago

Emirates airline to cut up to 9,000 jobs: report

  • Emirates plans to fly to 58 cities by mid-August, down from about 157 before the coronavirus
  • The company’s president the airline had already cut a tenth of its staff and that Emirates

DUBAI: Emirates airline has cut a tenth of its workforce during the novel coronavirus pandemic in layoffs that could rise to 15 percent, or 9,000 jobs, its president said, according to a report on Saturday.
The Middle East’s largest carrier, which operates a fleet of 270 wide-bodied aircraft, halted operations in late March as part of global shutdowns to stem the spread of the virus.
It resumed two weeks later on a limited network and plans to fly to 58 cities by mid-August, down from about 157 before the crisis.
However, its president Tim Clark has said previously that it could take up to four years for operations to return to “some degree of normality,” and the airline has been staging rounds of layoffs, as recently as last week, without disclosing numbers.
Before the crisis hit, Emirates employed some 60,000 staff, including 4,300 pilots and nearly 22,000 cabin crew, according to its annual report.
Clark said in an interview with the BBC that the airline had already cut a tenth of its staff and that Emirates “will probably have to let go of a few more, probably up to 15 percent.”
A company spokeswoman told AFP the airline had nothing to add to the report.
The International Air Transport Association (IATA) has said that airlines are in line to make a combined net loss of more than $84 billion this year in the wake of the pandemic crisis, the biggest in the industry’s history.
Clark said in the interview that Emirates was “not as badly off as others” but that the crisis hit just as it was “heading for one of our best years ever.”
The Dubai-based airline had reported a bumper 21 percent rise in annual profits in March.