Tuesday, April 23, 2024

UAE ripe for NZ agri-tech

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Despite currently importing 90% of its food, the United Arab Emirates (UAE) is committed to increasing its ability to feed itself better, and offers plentiful opportunities for New Zealand agri-tech firms to achieve that.
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Trade commissioner and consul-general to the UAE and Qatar Kevin McKenna told delegates at this year’s MobileTech Ag conference that the nation views NZ very favourably.

It is keen to engage with tech firms capable of helping the nation intensify its agricultural systems in a country dominated by desert and unfriendly growing conditions.

“NZ is the UAE’s second largest export source of food and beverage, and our 10th largest trade partner for goods and services,” McKenna said. 

“It is an essential gateway to Africa, and along with Saudi Arabia is two of our fastest growing export markets.”

The country has witnessed significant population growth over the past few years, from 4.1 million in 2005 to about 11m today, comprising 72% males and 28% females.

The challenge for authorities wanting to ramp up food production are highly apparent in a country dominated by “desert, mountains and more desert”.

About 66% of water-use is committed to agricultural production already, and conditions often reach 50degC.

Prime Consulting trade consultant Alpha Kennedy says there are a number of pain points for the country’s intended intensification programme, in addition to the hard growing conditions.

“But they are always looking for tech to address this challenge and are very curious,” Kennedy said.

“The low rainfall environment means desalination makes water expensive, and while the cost is subsidised by the Government, it would like to end those subsidies.”

As a result, climate resilient seeds, sensors and improved irrigation technology are all on industry radar.

The initiative to increase the country’s self-sufficiency has been driven by the Ministry for Climate Change and Environment, with a focus on increased food diversity of type and source.

Growth across the UAE’s primary sector has already been impressive, with an average of 4% increase a year, with horticulture up by 6% a year and milk doubling in production over five years.

“And this is distributed quite broadly across the country and includes vertical farming, and fish farming,” he said.

The Government only last year committed $US200 million to vertical farming technology.

The growth in food sufficiency is shared across all the Gulf states, in a market valued at about US$20 billion.

“These countries are standing on the start line for massive expansion in horticulture and aquaculture, seeking solutions as a customer willing to listen and more importantly, willing to pay,” he said.

But the UAE’s aspirations to increase food production are also limited by a dire skills shortage. 

Its agri-education sector is underdeveloped with only one limited tertiary facility and limited technical knowledge in areas of stock husbandry and crop management.

Kennedy described a 4000-stock unit sheep operation that had 25 staff.

“The traditional answer has been to just put more people into it as you scale it up,” he said.

As a result, migrant workers play a significant role in operation management, and account for a large portion of the country’s population and skills across multiple sectors.

A lack of agri-production data, often hoarded by officials also makes estimating volumes and values even more challenging.

Farm management and training software offers another potential agri-tech entry point for Kiwi firms.

Kennedy cautioned the opportunities are good, but not likely to last with Australia and Israel both focusing hard on agri-tech there.

“But they (UAE) will give NZ companies the time, and chance to demonstrate. But ultimately they are moving forward quickly with this transformation programme, even the Dutch are there,” he said.

“It would be a real shame if NZ-based products are not part of that mix.”

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