Business | General
UAE's food processing sector worth $3b in 2007
The UAE's food processing industry was valued at $3 billion in 2007 with a growth rate of 11 per cent a year, reports say.
- By Nadia Saleem, Staff Reporter
- Published: 00:41 May 14, 2008
Dubai: The UAE's food processing industry was valued at $3 billion in 2007 with a growth rate of 11 per cent a year, reports say.
In an earlier report on Dubai's food processing industry from Dubai Chamber of Commerce and Industry by economic researchers Belaid Rettab, Marietta Morada and Bader Ali Bakheet, it was said that investment opportunities in the food processing sector were large.
"The return of investment in the sector has sufficient space for the new firm entrance, product diversification and plant expansion."
The report listed technology, machinery and government support as the leading factors to favourably affect production, while raw materials and competition were the factors for highest negative impact.
Despite the great volume of imported food items flooding Dubai's markets, majority of local producers generally find themselves facing more competition from goods imported from the GCC countries, research has found.
However, producers of dairy products, with most competition coming from imported dairy products form GCC countries, found competition from locally manufactured dairy products and from imports from non-GCC countries at the same level.
"Ensuring food supply even during aberrations in the world market is a country's prime objective," researchers said.
Import dependent
Production processes remained mainly import dependent, with raw materials, machineries and production technology being imported, and only packaging materials being mostly locally produced.
Moreover, the report said that dependency on imports implies lack of adequate control over sources of inputs. "Government support is needed in ensuring stability of supply of inputs."
It also said that local production will enhance sustainability of food supply, even though globalisation has softened the reliance of food security on self-sufficiency.
The recommendations from the researchers are to have quality guideline standards and clear food processing safety guidelines to be developed and internalised.
"This will qualify the sector to better meet domestic demand and explore regional markets."
Share this article
More from Business General
More from Business
Popular in Business
-
Global Village
A world of fun
Revamped layout featuring four cultures to greet visitors this season
Business Editor's choice
-
Lloyds chief banks on yes vote
Stress levels were running high for Daniels ahead of bank's record venture
-
LED backlighting to brighten up industry
World Cup soccer fever spurs sales in Middle East, Africa, Asia-Pacific and China
-
Koreans win $10b worth of contracts
Bilateral trade to pick up on higher demand, Korean official says
