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The Explorer
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Written by WS
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Friday, 13 June 2008 14:45 |
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The fertile land and the suitable weather for growing crops are quite limited in many dry countries, now the Saudis plan to grow crops overseas. Saudi Arabia revealing plans to develop large-scale overseas agricultural projects to secure food supplies, revealing that Riyadh is in discussions with Ukraine, Pakistan, Sudan, Turkey and Egypt.
Their source was quoted saying " the government was planning to set up projects of at least 100,000 hectares in several countries togrow crops such as wheat, corn, rice, soyabeans and alfalfa, a  feed for livestock." This new strategy is also aimed at building up strategic reserves, comes as food prices have doubled over the past two years and a series of trade restrictions by exporting countries have limited the oil-rich kingdom's ability to secure supplies.
The Kingdom of Saudi Arabia is the region's largest economy and the most populous state in the Gulf, produces around 2.5m tonnes of wheat per year ; costing the government billions of dollars in subsidizing its costs; however It is the world's largest importer of barley and one of the five largest importers of rice and buys in most of its food products. Massive rises in food prices, particularly wheat and rice, have caused a number of Arab countries to look to develop schemes in other nations.
Food costs have also been a significant contributor to the double-digit inflation that is causing mounting concern in the Middle East. Acute limitation of water resources is forcing the Kingdom to review its wheat cultivation and had decided earlier this year to phase it out by 2016 to protect its finite water resources, realising the project was unsustainable, they also have big concerns about farmers growing alfalfa which consumes a huge amount of water - to feed dairy cattle.
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