Food companies across the Middle East are looking to develop closer relationships with the producers of raw materials and ingredients, as the price of foodstuffs globally continues to rise.
According to research from the World Bank's International Agricultural Research Group, food prices around the world are rising to historic highs because of the promotion of biofuels, poor harvests, agricultural policy and commodity speculation. A study by Dubai Chamber, based on figures from the Economist Intelligence Unit (EIU), suggests that ten major food groups – including flour, milk and rice – have posted significant price increases in the UAE over the past year, with flour experiencing the highest average rise of 57.72 percent.
While the authorities' agreements with retail outlets have provided some immediate relief, many companies within the region are looking to forge a direct relationship with ingredient producers to manage price rises in the short-term and ensure greater stability in the long-term.
To provide support for companies looking to develop strategic ties, Dubai World Trade Centre (DWTC) is organising the first-ever Ingredients Middle East, a dedicated trade show supporting the food manufacturing and processing industries. Exhibitors from around the world will showcase products including dairy ingredients, fruit products and extracts, herbs, spices and organic ingredients.
“The inaugural Ingredients Middle East exhibition has proven extremely timely, given the number of companies and government organisations looking to cement stronger relationships with ingredient suppliers. Since the announcement of the show, we've received a high number of inquiries from manufacturers, government organisations and even hospitality groups looking to attend the event,'' said Joanne Cook, Industry Group Manager, DWTC.
Ingredients Middle East will take place from 15-17 June 2008 at the Dubai International Convention and Exhibition Centre and has already attracted some of the world's leading ingredient producers including Transveritas, Doehler Middle East Ltd., Reda Food Ingredients, Food Specialities and CHR Hansen. Many locally-based ingredient producers are using also the show to profile their products for regional and international food producers.
In addition, international bodies and suppliers including The Istanbul Chamber of Commerce of Turkey, The Egyptian Company for Diary Products, Roha Dyechem of India, France's Caragum International and the USA's MAFCO Worldwide are all set to exhibit.
Among the exhibitors participating in this year's show is Koko Budi Sdn, a cocoa products manufacturer. In the current climate, cocoa prices are seen as volatile - rising by almost 50 per cent between September 2007 and February 2008 – but stronger links between manufacturers and suppliers are enabling companies to better manage costs.
“We see a lot of potential to work more closely with companies in the Middle East. There is significant demand for our products in the region and we aim to grow our relationships through the supply of innovative products,'' said Chum You Heng, General Manager, Koko Budi Sdn.
Supported by Dubai Municipality, the event will also be co-located with the Arab Beverages Forum, which comprises a strong ingredients component, as well as discussions on added values, flavouring and updates from local players about developing and positioning their products.
Ingredients Middle East 2008 – the Region's International Ingredients Exhibition for Food, Beverage and Health Food for the Middle East, Africa and Indian Subcontinent will take place from 10:00am - 5:00pm on 15-16 June and 10:00am - 4:00pm on 17 June 2008 at the Dubai International Convention and Exhibition Centre, Dubai, UAE.
