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9862
Thu, 06/12/2008 - 16:42
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Abu Dhabi Council for Economic Development stresses need for strategic food

Abu Dhabi, June 12 (WAM) - As global food crisis continues unabated, a UAE study has called for diversification of the country's sources of food imports to control prices and avert possible food shortages.

The study, conducted by the Abu Dhabi Council for Economic Development, also stressed the need for a strategic food reserve on which the country could rely, should there be any crisis in exporting countries.

The spiralling food prices in Abu Dhabi emirate - which ranges between 30 to 50 per cent and even 60 at times - raises serious questions about food security in the UAE in general and Abu Dhabi emirate in particular, said the study.

Stating the aims of the study, the report said, this study was conducted to assess the country's food status in view of the current global crisis. The UAE, says the study, is a country with no agricultural resources but with enormous financial resources to secure its food supplies. Notwithstanding these financial resources, the study said, there is a need to assess the situation in terms of availability and continuity in the flow of imports.

The study enumerated the main food items imported by the UAE. These items are sugar, dairy products, meat, tea, coffee, rice, oil, poultry products and wheat flour. These items are imported mainly from five countries. For example, sugar is mainly imported from Brazil, which accounted for 73 per cent of the UAE sugar imports of Dh2.3 billion in 2006. Other suppliers are Germany and Belgium. As for meat, the UAE imported a total of Dh1.93 billion worth of meat in 2006 of which Brazil accounted for 55 per cent, followed by India, Australia, Saudi Arabia and Somalia.

The other strategic food items are rice, on which the UAE spent Dh1.4 billion worth of imports in 2006. Rice imports were mainly from India and Pakistan, both of which accounted for 91 per cent.

It is clear from these samples, the study notes, that certain countries tend to dominate the list of imports of certain items, a situation which should be rectified through diversification of sources of imports.

The study examined a number of options which the UAE should adopt to achieve food security. These options include realization of self-sufficiency through local production. The other option to achieve food security by importing food items in strategic quantities.

In view of the arid conditions of the country, the option of achieving self-reliance and self-sufficiency in agricultural produce is remote, said the study. The only viable option to ensure food security is continuation of imports from abroad. Since the UAE boasts huge financial resources, food security could be achieved by importing large quantities of foodstuff. The study said UAE food imports stood at Dh52.3 billion in 2007, accounting for 15.2 per cent of commodity exports.

Foodstuff trade is expected to increase from Dh52.3 in 2007 to Dh60 billion by 2011. Since imports seems to be the best option for the UAE to secure, sources of importing food items should be diversified. Rather than relying on a limited number of exporting countries, the UAE should diversify the sources so that it is not adveresly affected if food crisis erupts in the exporting countries.


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