(MENAFN- Muscat Daily) Market research has forecast good medium to long-term growth in the food sector across GCC, with increasing government support, foreign investments and private sector participation playing important roles.
The research by Alpen Capital for 2013 says that Qatar is likely to lead GCC in terms of growth in food consumption, followed by UAE and Oman, while Saudi Arabia will continue to dominate the food market.
The upcoming World Food Security Summit in Dubai will see experts discuss topics keeping these forecasts in view. The February 23-24 summit will be opened by Dr Rashid Ahmed Mohammed bin Fahad, the UAE Minister of Water & Environment, who will deliver a keynote address on the state of food security in UAE and the Middle East, as well as challenges in securing the region's future food supplies.
The UN Food & Agriculture Organisation (FAO) recently estimated that 1.3bn tonnes or one third of the food produced for human consumption is wasted every year.
Experts at the summit will address inefficiencies in logistic chain besides technologies and solutions to reduce wastage and energy consumption while enhancing productivity. The Alpen Capital research projected a compound annual growth rate (CAGR) of 3.7 per cent in Oman's food consumption during 2012-17.
€˜Besides population growth, initiatives undertaken by the government for boosting tourist activity is likely to contribute towards rise in food consumption in the country,' stated the research report.
The number of foreign tourists visiting Oman is expected to increase at a CAGR of 5.7 per cent between 2012 and 2017. ‘Thus owing to the strong potential of the country as a major tourist destination, significant investments have been made.' These factors are likely to raise food consumption.
The report said that GCC countries 'must take necessary steps to ensure smooth imports and boost domestic production' as they import food products from across the globe due to limited production capacity. It said that changing climatic conditions, along with rising food prices, make GCC highly vulnerable to any adverse food trends globally.
According to the report, in terms of total consumption in Oman, cereals will remain the leading food category, closely followed by milk. During 2012–17, the growth in consumption of meat will be the highest with 5.1 per cent followed by fruits, vegetables and milk (all at four per cent) and cereals at 3.5 per cent.
Population growth in GCC region is expected to expand at a CAGR of 2.4 per cent to reach 49.9mn during 2012–17, leading to a rise in food consump
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