This growing season, many farmers were dismayed as their cucumbers lay rotting in the fields. Unable to get a decent price in an oversupplied market, one farmer, Salem Mutib al Muhairbi, says he would rather throw them away.
In an era of volatile global food prices, the government has increasingly looked to local farmers to help secure the country's food supply. But those farmers say there is little incentive to keep growing costly produce for very little profit.
Hreif Rashed Hreif gets around Dh3 for a 16kg carton of his tomatoes. They are then sold onwards, by traders, for Dh3 a kilo.
Mr al Muhairbi's crop barely covers the salaries of his eight workers, let alone his water and electricity bill.
A sizeable portion of low-cost vegetables are imported from surrounding countries, such as Syria, Jordan and Oman. Overall, around 1.6 million tonnes of fruits and vegetables were imported into Dubai last year.
Imported food has an important advantage over locally grown crops - year-round availability. With the UAE's hot, arid climate, crops only survive in greenhouses, which can be costly to install. Cooling the greenhouses also uses more water than is saved by not planting in open fields. But production and yield is higher, and growing seasons longer.
According to Abdullah al Amimi, a farmer in Liwa, dealers favour greenhouse growers because their produce more closely resembles the European crops preferred by consumers.
But a study released last week by the Farmer's Services Centre (FSC), a independent body charged with modernising farms in Abu Dhabi, challenged that perception. It found that 78 per cent of respondents felt local vegetables were of good quality, in terms of freshness and grading standards, and 65 per cent believed they were safe to eat, in terms of chemical and pesticide use.
But farmers are still struggling for acceptance.
To boost profits, Mr al Amimi says unscrupulous dealers have tried to package his produce in "Product of Holland" boxes. Tomatoes from the Netherlands sell at around Dh18 a kilo, while local ones sell at Dh3.25.
"My farmer can't read and he won't understand when there's a [European Union] Schengen stamp on the box," said Mr Amimi, adding that although the dealer promised to change the packaging once the produce reached storage, Mr Amimi had refused the order.
Shokri Hassan Ali, a Dubai-based trader, said some high-end hotels and restaurants refuse to accept local produce.
"I never use EU packaging [on local produce] but it's true that sometimes hotels don't accept UAE or Middle East produce because they think European products are better," he said. He said it was rare for farms to label their packages "Made in the UAE".
Industry experts say farmers have been coddled by previous subsidy programmes. Now, as the government tries to turn agriculture into a competitive market, they are struggling to adapt.
Launched last summer, the FSC is meant to give small farms a competitive edge by offering them expertise, technology, and access to marketing channels through their collection centre.
Last winter, it began spot-buying and contract farming with up to 300 Al Gharbia farms, buying about 22 tonnes a day of fresh produce, from tomatoes and cucumbers to broccoli, beetroot, gourds and oranges.
Administrative problems have plagued the project. The centre sets its prices on a weekly basis, and each collection office is meant to post the price publicly, as well as write it on all receipts.
Christopher Hirst, the FSC's chief operating officer, accepts that that has not always been happening.
"The receipt stays with the farmer, and goes to the pack house, where some of it may be rejected for grade, and that would be communicated to the farmer," he said. "Some of our staff weren't writing the price on the document. We're trying to correct it."
According to the FSC, farmers have earned more by selling through it, rather than directly to traders. In February and March, they earned 20 per cent more for cucumbers, and 28 per cent more for aubergines, according to its figures.
The damage may already have been done. Several farmers have dropped out, preferring to go it alone.
Still, the programme is a step in the right direction, says Nicholas Lodge, an agricultural expert at Clarity in Abu Dhabi.
The role of government, he says, should be to create a genuine and dynamic free market environment, ensuring there are enforced standards and that farmers are accredited and paid for good produce.
But for growers to get the price they deserve, says Ali Bukkarood, a hydroponic contract farmer in Al Awir, they need to start calculating their costs better, and planning when to plant crops to protect their prices on the market.
"If you don't have an order, why produce and sell it in the open market?" he asks. "Most of the time it's sold at a loss because [buyers] don't have an understanding of what it costs to grow it, versus market prices."
There is limited protection for local farmers, admits Mr Lodge. "But at the same time, do you want to create barriers to encourage inefficient or uneconomic farming systems to continue? It's a balancing act."
Hydroponics, where plants are fertilised with mineral nutrient solutions and the irrigation water is recycled, is more environmentally friendly. Greenhouses are more efficient.
Some farmers struggle to walk that tightrope.
Next year, Mr al Muhairbi plans to sell his crops on the open market, but fears the FSC scheme will push market prices down.
"It's better for me to keep it empty, send one worker back home and keep one on staff," he said.
If next year reaps the same losses as this year, he says he will convert his fields to date palms.
"It takes three to four years to get dates from the small trees, but it'll be better than this."
mdetrie@thenational.ae
cmalek@thenational.ae
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
The specs
Engine: 8.0-litre, quad-turbo 16-cylinder
Transmission: 7-speed auto
0-100kmh 2.3 seconds
0-200kmh 5.5 seconds
0-300kmh 11.6 seconds
Power: 1500hp
Torque: 1600Nm
Price: Dh13,400,000
On sale: now
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
DMZ facts
- The DMZ was created as a buffer after the 1950-53 Korean War.
- It runs 248 kilometers across the Korean Peninsula and is 4km wide.
- The zone is jointly overseen by the US-led United Nations Command and North Korea.
- It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
- Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
- Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
- Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012.
- Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
Vidaamuyarchi
Director: Magizh Thirumeni
Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra
Rating: 4/5
Emergency
Director: Kangana Ranaut
Stars: Kangana Ranaut, Anupam Kher, Shreyas Talpade, Milind Soman, Mahima Chaudhry
Rating: 2/5
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now
One in nine do not have enough to eat
Created in 1961, the World Food Programme is pledged to fight hunger worldwide as well as providing emergency food assistance in a crisis.
One of the organisation’s goals is the Zero Hunger Pledge, adopted by the international community in 2015 as one of the 17 Sustainable Goals for Sustainable Development, to end world hunger by 2030.
The WFP, a branch of the United Nations, is funded by voluntary donations from governments, businesses and private donations.
Almost two thirds of its operations currently take place in conflict zones, where it is calculated that people are more than three times likely to suffer from malnutrition than in peaceful countries.
It is currently estimated that one in nine people globally do not have enough to eat.
On any one day, the WFP estimates that it has 5,000 lorries, 20 ships and 70 aircraft on the move.
Outside emergencies, the WFP provides school meals to up to 25 million children in 63 countries, while working with communities to improve nutrition. Where possible, it buys supplies from developing countries to cut down transport cost and boost local economies.
MATCH INFO
Euro 2020 qualifier
Norway v Spain, Saturday, 10.45pm, UAE
MATCH INFO
Barcelona 4 (Messi 23' pen, 45 1', 48', Busquets 85')
Celta Vigo 1 (Olaza 42')