Business | Markets
Abu Dhabi council says food reserve is vital
The Abu Dhabi Council for Econ-omic Development (ADCED) has stressed the importance of building a strategic food reserve in the UAE and diversifying sources of imports to avoid a food crisis in cases of instability in exporting countries and to curb spiralling prices.
- WAM
- Published: 00:03 June 12, 2008
Abu Dhabi: The Abu Dhabi Council for Economic Development (ADCED) has stressed the importance of building a strategic food reserve in the UAE and diversifying sources of imports to avoid a food crisis in cases of instability in exporting countries and to curb spiralling prices.
In a comprehensive report on food security in the UAE, the council said prices of some food items have risen by 30 to 50 or even 60 per cent in Abu Dhabi, which shed the light on the important issue of food security in the UAE and Abu Dhabi in particular.
The UAE's special circumstances make imports a priority in achieving food security, as well as encouraging the agricultural sector to produce some basic commodities.
The report specifies a food basket that the UAE imports and the five major exporters of each food item.
It estimated the UAE's imports of food commodities in 2007 at Dh52.3 billion or 15.2 per cent of all imports, estimated at Dh345 billion, while in 2006, food imports reached Dh46.7 billion out of Dh316.3 billion total imports.
On the other hand, the UAE's exports of food only reached Dh3.6 billion in 2005, only 0.8 per cent of total exports.
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The UAE imports foodstuff from 144 countries, out of which India and Brazil provide about one-third of all farm products.
Sugar imports in 2006 reached Dh2.3 billion. Brazil was the main exporter with a share of 73 per cent.
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 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 imports of certain items, a situation, which should be rectified through diversification of sources of imports.
Food trade is expected to rise from Dh52.3 in 2007 to Dh60 billion by 2011.
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