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The development of the internet, in particular in Australia and
throughout the Middle East, is important for the delivery of
information about Australia to the Middle East community. There
still exists however big information gap between Australia and
Middle East. This web-site will hopefully provide information to all
parties on developments in the agriculture sector and related issues
that could prove of interest.
AARG
is an Australian based consultancy and agricultural company that has
enormous experience in the field of seeking to maximise investment
returns in the agricultural sector and government relations. It is
our intention to create an absolutely new source of information for
Australian and Middle Eastern businessman from which interested
parties can pursue detailed information from accredited sources.
With tremendous experience in agriculture and related opportunities
AARG is interested in the development of partnership between
Australia and the Middle East. This web-site will provide available
information and links necessary for economic and investment research
on Australia and build the bridge between Australia and the Arab
world. Developing strong reciprocal trading agreements in;
-
cultural understanding.
-
education and employment strategies
-
grain and commodity trading
-
strategic planning
Within the idea of the information exchange between Australia and
the Middle East, AARG has planned a unique commodity trading
and strategic planning program developed specifically to eliminate
from the market traditional spikes in the cost of grains and other
commodities. The program once fully implemented will provide both
buyers and producers certainty in market share and price.
AARG’s
Grain Trading is an innovative new trading tool that
offers buyers and sellers an alternative
marketing platform. It has been developed through extensive
consultation with buyers and producers to
offer the most beneficial features for both
parties.
- Access to the
largest number of buyers and sellers in Australia
and Overseas
- Fast and safe
contracts (Drafts available within
24 hours)
- Provides price
information on recent sales
- Provides a
safe trading environment with national commodity standards
AARG’s
Grain Trading links those with grain with those who need grain
both in Australia and Overseas. It works by users listing the
product that they wish to buy or sell, this list can then be
searched by other users and contracts can be entered into between
users.
Let
this web site be the result of your
season’s hard work. It will make sure that it was all worth while.
There is no cost involved with putting up an offer, so give it a go.
To register please click
on the link
Register
Market Assessment
Middle East – Background
and Information
The Market
The target market over the next five years is the
core agribusiness and export market, on a global basis. The initial
focus region will be the Middle East by working extensively with
governments and individual stakeholders to develop and constantly
improve the wide range of products and services we offer.
Strategic Business Environment in the
Middle East
Although each country has its own specific
business environment, the following common issues significantly
affect regional development and potential trade:
-
Security issues and political instability in the region are
affecting the development of long-term businesses. This problem
has spread from the North African region, including Algeria,
Libya, Egypt and Sudan, through to Turkey, Iraq, Kuwait,
Lebanon, Pakistan and, of course, the long-term
Israeli-Palestinian conflict. Significant political changes,
peace processes, and diplomatic efforts are always encouraging
development in the regional economy and international business
arena.
-
The
political developments in Iraq and the War against Terrorism
have significantly affected international trade and the costs of
logistics and insurance.
-
Some countries in the region are extremely rich in natural
resources, with oil and gas being major sources of income. A
number of countries in the region are diversifying their
economies in order to strengthen prospects for sustainable
economic growth and to reduce vulnerability to adverse oil price
movements. Tremendous investments in the manufacturing sector,
tourism and services have been recorded in recent years.
-
However, some countries in the Middle East have relatively low
purchasing power.
-
The
fast growing population of more than 580 million people (2003
estimate) represents a tremendous market for food and
agricultural commodities. According to FAO population
projections for the Middle East, the increasing rate of 130
million people per decade will result in a population of more
than 800 million people by 2020.
-
The
Middle East accounts for about 8 per cent of the world’s net
imports of agricultural products. Average annual imports of
agricultural products have grown to nearly US$39 billion over
the past 10 years, 70 per cent of which have been food.
-
Climate, lack of water and environmental issues are limiting
factors for agricultural development in the Middle East.
Therefore, there is a strong belief that the region will have to
rely on agriculture and food imports in the future.
-
Trade policies related to market groupings, similar to the
European Union (for example, the Gulf Cooperation Council, or
GCC), and subsidies to the agriculture industries in the US and
EU.
-
Almost all countries in the Middle East would view Iran
positively. The Iranian agricultural industry could develop a
reputation for meeting the specific requirements of customers.
Proximity to the market and the potential to develop excellent
resources in some agricultural sectors are also significant
advantages for Iran's export trade with the Middle East.
-
The
war in Iraq and the War against Terrorism.
-
The
impact of the War against Terrorism, particularly on the tourism
and hospitality industries.
-
A
slowdown in the world economy.
-
Animal health and welfare issues.
-
Some trade issues (Halal issues, the livestock trade in Saudi
Arabia) which require more precise regulations.
-
Labor and labor costs.
-
Strong competition (incl. new competitors form China and India).
With a
large and growing requirement from the Middle East for agricultural
commodities and services major opportunities for growth in
agricultural trade to the Middle East include:
-
Traditional products (bulk exports) such as wheat, barley,
livestock, and pulses mainly to the growing food processing
market segment.
-
Perishable products – including fresh produce, dairy, and meat –
mainly distributed through retail trading and partly through the
hospitality industry (fast food outlets) distribution chains.
-
Highly processed products, prepared foods, and convenience
foods.
-
Developing services, expertise, training, and implementation of
Agriculture developing projects.
-
Better logistics services to the Middle East, including sea and
air transport, provide an additional boost for new exports such
as fresh meat, fish, and horticulture and dairy products. Air
access is the key to developing international trade and tourism
opportunities. The Middle East has been identified as a key
market for perishables that require airfreight to achieve
optimum market penetration and prices.
-
Hospitality sector in the region.
Estimated Population
Increase in the Middle East
|
Countries
and populations in the Middle East |
|
Country |
Population 2003
(Million) |
Estimated
Population 2010 (Million) |
|
Bahrain |
0.7 |
0.8 |
|
Kuwait |
2.5 |
3 |
|
Oman |
2.9 |
3.5 |
|
Qatar |
0.6 |
0.7 |
|
Saudi Arabia |
24 |
30 |
|
United Arab
Emirates |
3 |
3.5 |
|
Iraq |
25 |
30 |
|
Yemen |
18 |
25 |
|
Pakistan |
156 |
182 |
|
Jordan |
5 |
6 |
|
Lebanon |
3 |
4 |
|
Turkey |
71 |
78 |
|
Israel |
6 |
7 |
|
Palestine |
1 |
1.7 |
|
Syria |
16 |
20 |
|
Algeria |
31 |
36 |
|
Egypt |
71 |
84 |
|
Libya |
6 |
7 |
|
Morocco |
30 |
34 |
|
Tunisia |
10 |
11 |
|
Sudan |
34 |
38 |
Source: FAO 2003, Projection 2010
The Middle East accounts for about 8
per cent of the world’s net imports of agricultural products, with
imports of agricultural products growing to US$38.7 billion in 2003.
Food accounts for 70 per cent, or US$27.5 billion, of this figure. |