Turki Faisal Al Rasheed,after his lecture at the University of Palermo .
Water scarcity is a serious problem for agricultural production in the Middle East. Forecasts that are managed in these latitudes are quite disappointing. For the lack of water resources in Saudi Arabia estimated that by 2016 will not be producing more wheat. This was the main trigger that led to the firms in the country to cross the border and explore the possibility of finding business partners in other continents.
That’s how Turki Faisal Al Rasheed, president of Golden Grass, agricultural company is considered one of the 100 largest companies in Saudi Arabia, arrived in Argentina and Latin America for the first time a week ago. This is one of 20 agricultural countries that make up the list of potential trading partners that Al Rasheed and his colleagues are targeting.
In farming, “in Argentina there are many opportunities in Saudi and we have many needs,” said Al Rasheed in dialogue with the NATION. “What we want is a situation of win / win (win / win),” he said before the lecture at the Seminar on Agribusiness: Business in the Middle East “, organized by the Faculty of Economics, University of Palermo.
“While in Argentina’s productivity is measured in tons per hectare, in Saudi Arabia is estimated at grain produced per drop of water,” said Al Rasheed, to contrast the different realities of each country on agriculture.
The “needs” of speaking Al Rasheed can be quantified: Saudi Arabia spends about 17 billion dollars to import food. Urgently, the country needs to import two million tonnes of wheat (consumed three and only produce one), one million tons of rice, 6.3 million tonnes of barley and 11 million tons of feed for livestock (consume 14 and produces only 3).
Over time estimate that these demands will increase by the fall in production, given population growth and the increasingly serious water situation.
“The idea is to invest in land,” she told Al Rasheed. Its main intention is to create a joint venture with partners who qualify.
Its main objective is to build societies in Arab capitals that provide the inputs that have in abundance as chemicals and fertilizers, so that members use to produce their lands. Anyway, Al Rasheed came open to other possibilities. He stressed that appropriate arrangements should be generated not only for the parts of the business, but also to “societies and the environment.”
Looking for partners
The selection of partners will be following a pre-determined criteria. First, the country must have sufficient resources. As a second requirement determines the political and economic stability. ” Then arose the “stability of the administration” and a “free market environment.”
For these requirements, Al Rashid admitted he is aware of conflicts between the government and country, which had its peak in 2008. In that sense, what concerned him most, for the purposes of their business interests are “limits to wheat exports.” “That’s a big problem,” he said. “People in Argentina do not realize what the world needs,” reflected Al Rasheed. “In today’s world there are billions of hungry people,” he said, quoting figures released by the United Nations. According to Al Rached, “agriculture is not a business, life. It’s the only way to end poverty.”
His tour includes Uruguay, Brazil and other countries in the region. The list of criteria for selection is the same for everyone and will be strictly enforced. Al Rasheed wants to be sure you are worth the 18 hours of flight time separating their country from Latin American soil.
By : Mercedes Manfroni / Saturday 25 September 2010