| G20 NATIONS AGREE TO UNINTERRUPTED FOOD SUPPLY CHAINS |
Saudi Arabia and the rest of the world is increasingly focused on ensuring food supply chains remain uninterrupted during worldwide lockdowns.
In April, the agriculture ministers of G20 Nations, under the presidency of Saudi Arabia, renewed their commitment to ensure the continued flow of food, products, and inputs essential for agricultural and food production across borders.
“We will guard against any unjustified restrictive measures that could lead to excessive food price volatility in international markets and threaten the food security and nutrition of large proportions of the world population, especially the most vulnerable living in environments of low food security,” the G20 ministers said in a joint statement.
The ministers also reaffirmed their agreement not to impose export restrictions or extraordinary taxes on food and agricultural products purchased for non-commercial humanitarian purposes by the World Food Programme (WFP) and other humanitarian agencies.
A separate statement from G20 trade ministers echoed the sentiment, as they sought to develop recommended actions to ensure the continued flow of vital medical supplies and equipment, and critical agricultural products across borders. The trade ministers also addressed longer-term actions to support the multilateral trading system, building resilience in global supply chains, and strengthening international investment in order to expedite economic recovery from the pandemic.
Amid the health crisis, the kingdom has leveraged its G20 presidency to spearhead the global drive to ensure essential food supply chains continue to function.
The kingdom’s G20 presidency began on 1 December 2019 and will end on 30 November. It will culminate with The Leaders’ Summit on 21 to 22 November in Riyadh. In the run-up to the summit, the presidency is expected to host more than 100 meetings and conferences, including ministerial meetings, as well as meetings of officials and representatives from civil society.
LOCAL PRODUCTION
On the domestic front, the Saudi government is also looking to boost food and agriculture output. In April, the Saudi Agriculture Development Fund (ADF) said it was allocating SAR 2 billion (USD 533.33 million) to boost local food security and production.
The programme, which would provide direct or indirect loans, will focus on soybeans, yellow corn, rice and sugar.
“This initiative... aims to meet development priorities and economic needs within the urgent initiatives approved by the Saudi government to address the impacts of the novel coronavirus,” according to the statement.
The Ministry of Environment, Water, and Agriculture has also chipped in, by providing SAR 180 million in April as direct support for small-scale livestock owners, fish farming projects, and poultry producers.
In April, the ADF had also approved loans of SAR 60 million, focused on production of vegetables in greenhouses and poultry in several regions of the country.
“This comes within the framework of one of the fund's initiatives to mitigate economic effects of the coronavirus (COVID-19), which is an initiative to support small and medium enterprises sector with an amount estimated at SAR 450 million through the provision of direct and indirect operational loans to enhance the efficiency of the local agricultural sector and contribute to achieving food security,” according to the statement.
Indeed, the health crisis could also turn into an opportunity for local food manufacturers as it has compelled many countries to boost domestic industries and reduce dependence on imports.
The National Committee for Fresh Dairy Producers at the Council of Saudi Chambers has also committed to securing and sustaining healthy, safe and sufficient food for the consumers.
Separately, the Ministry of Environment, Water and Agriculture has been sourcing livestock to ensure a steady supply of meat and dairy products. The ministry said it had secured 160,472 cattle heads to ensure food security and price stability in the country.
In recent weeks, the government sourced the livestock from Somalia, Romania. Ethiopia ad Djibouti.
The country has also strengthened its trade lines to expand its food and agriculture sources.
In May, the Saudi Ports Authority, or Mawani, began operating a new shipping line for container transportation between the Jubail Commercial Port and the East Asian countries. The weekly trips will be carried out by global shipping line Hyundai Merchant Marie (HMM) and part of the alliance agreement for the lines that consist of Hapag-Lloyd Line, One Line, Yang Ming Line, to improve shipping connections between the kingdom and key markets of Asia.
The various moves are in line with the 2030 Vision Program, which considers food security as one of its key targets. The goal will be achieved by strengthening the domestic food and agriculture infrastructure and developing strong trade networks to ensure steady stream of fresh produce, meat and food essentials.
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