Australian Agricultural Resources Group Pty Ltd
ACN: 109 146 205 ABN: 44 109 146 205
 
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About Us

Australian Agricultural Resources Group Pty Ltd is a natural progression of both the core business and a consolidation of our other activities. Through an innovative comprehensive process we have achieved our objective by restructuring the company to a blend of both domestic and international subsidiaries that are easy recognised by consumers for the range of products and services we provide.

Our team is committed to helping our clients achieve their goals by providing an accurate, independent, objective service and support that is facilitated by a well trained and knowledgeable team which understands the operating environment for industries today, is increasingly complex, involving economic, environmental, and social challenges.

Meeting these challenges is critical to successful outcomes the company’s long-term plan establishes a strategic direction to enable the company to maximize its contribution to industry on a global scale.

Diversification plays a major role in a company’s expansion and longevity, the ability to adapt quickly to change and incorporate new and innovative technologies will be critical, and impact upon the core business activities of any singular company.

With this in mind we have expanded the Group by incorporating and or acquiring a number of subsidiaries companies offering a wider range of business activities further improving the focus and delivery of the range of services and expertise we are able to provide.

Australian Agricultural Resources Group is a privately owned Proprietary Limited Company incorporated in the State of New South Wales - Australia (In accordance with the Australian Corporations Act 2001). AARG was principally formed as an agricultural business in 1999 after having identified a need within the industry for a new approach to management strategies and marketing platforms. Through a comprehensive process of diversification the Company has expanded its operation into a wide variety of activities highlighting to consumers the range of products and services we provide.

OUR MISSION

The operating environment for rural industries globally is increasingly complex involving economic, environmental, and social challenges. The role of any agribusiness in addressing these challenges will be critical to successful outcomes. Australian Agricultural Resources Group’s long-term plan establishes a strategic direction to enable the company to maximize its contribution to our clients.

Our mission is to:

  • Deliver a range of quality products and services developed specifically for rural and associated industries globally;
  • Secure and expand the company‘s position by the registration of Copyright, Intellectual Property and Trademark thus protecting all aspects of the company‘s current business activities including, but not limited to, business practices, concepts, documentation and procedures;
  • Provide producers with an alternative marketing platform for their goods and services

THE MARKET

The target market over the next five years is the core agribusiness and export market, on a global basis. The initial focus regions will be Australia and the Middle East, working extensively with governments and individual stakeholders to develop and constantly improve the wide range of products and services we offer. The agricultural industry market is the key entry factor to the lucrative world of commodity trading.

The company will explore the potential to develop agricultural production in a number of countries throughout the Middle East. With the introduction of new agricultural technologies into the lucrative Middle Eastern and Gulf market, creating an export industry worth in excess of seven billion US dollars per annum. To meet this demand will require a major upgrade of farming practices and technologies currently employed. 

STRATEGIC BUSINESS ENVIRONMENT IN THE MIDDLE EAST

Although each country has its own specific business environment, the following common issues significantly affect regional development and potential trade:

a.    Security issues and political instability in the region are affecting the development of long-term businesses. This problem has spread from the North African region, including Algeria, Libya, Egypt and Sudan, through to Turkey, Iraq, Kuwait, Lebanon, Pakistan and, of course, the long-term Israeli-Palestinian conflict. Significant political changes, peace processes, and diplomatic efforts are always encouraging development in the regional economy and international business arena.

b.    The political developments in Iraq and the War against Terrorism have significantly affected international trade and the costs of logistics and insurance.

c.    Some countries in the region are extremely rich in natural resources, with oil and gas being major sources of income. A number of countries in the region are diversifying their economies in order to strengthen prospects for sustainable economic growth and to reduce vulnerability to adverse oil price movements. Tremendous investments in the manufacturing sector, tourism and services have been recorded in recent years. However, some countries in the Middle East have relatively low purchasing power.

d.    The fast growing population of more than 580 million people (2003 estimate) represents a tremendous market for food and agricultural commodities. According to FAO population projections for the Middle East, the increasing rate of 130 million people per decade will result in a population of more than 800 million people by 2020.

e.    The Middle East accounts for about 8 per cent of the world’s net imports of agricultural products. Average annual imports of agricultural products have grown to nearly US$39 billion over the past 10 years, 70 per cent of which have been food.

f.     Climate, lack of water and environmental issues are limiting factors for agricultural development in the Middle East. Therefore, there is a strong belief that the region will have to rely on agriculture and food imports in the future.

g.    Trade policies related to market groupings, similar to the European Union (for example, the Gulf Cooperation Council, or GCC), and subsidies to the    agriculture industries in the US and EU.

h.    Almost all countries in the Middle East would view Iran positively. The Iranian agricultural industry could develop a reputation for meeting the specific requirements of customers. Proximity to the market and the potential to develop excellent resources in some agricultural sectors are also significant advantages for Iran's export trade with the Middle East.

ISSUES AFFECTING BUSINESS IN THE MIDDLE EAST

a.    The war in Iraq and the War against Terrorism.

b.    The impact of the War against Terrorism, particularly on the tourism and hospitality industries.

c.    A slowdown in the Egyptian economy.

d.    Animal health and welfare issues.

e.    Some trade issues (Halal issues, the livestock trade in Saudi Arabia) which require more precise regulations.

f.     Labor and labor costs.

g.     Strong competition (incl. new competitors form China and India).

OPPORTUNITIES IN THE MIDDLE EAST

With a large and growing requirement from the Middle East for agricultural commodities and services major opportunities for growth in agricultural trade to the Middle East include:

a.    Traditional products (bulk exports) such as wheat, barley, livestock, and pulses – mainly to the growing food processing market segment.

b.    Perishable products – including fresh produce, dairy, and meat – mainly distributed through retail trading and partly through the hospitality industry (fast food outlets) distribution chains.

c.    Highly processed products, prepared foods, and convenience foods.

d.    Developing services, expertise, training, and implementation of agriculture developing projects.

e.    Better logistics services to the Middle East, including sea and air transport, provide an additional boost for new exports such as fresh meat, fish, and horticulture and dairy products. Air access is the key to developing international trade and tourism opportunities. The Middle East has been identified as a key market for perishables that require airfreight to achieve optimum market penetration and prices.

f.     Hospitality sector in the region.

ESTIMATED POPULATION INCREASE

Countries and populations in the Middle East

Country

Population 2003 (Million)

Estimated Population 2020 (Million)

Bahrain

0.7

0.8

Kuwait

2.5

3

Oman

2.9

3.5

Qatar

0.6

0.7

Saudi Arabia

24

30

United Arab Emirates

3

3.5

Iraq

25

30

Yemen

18

25

Pakistan

156

182

Jordan

5

6

Lebanon

3

4

Turkey

71

78

Israel

6

7

Palestine

1

1.7

Syria

16

20

Algeria

31

36

Egypt

71

84

Libya

6

7

Morocco

30

34

Tunisia

10

11

Sudan

34

38

MAJOR IMPORTS BY THE MIDDLE EAST

Major imports by the Middle East ($USD  million)

Country

Agric

Food

Cereals

Dairy

Fruit/Veg

Meat

Ovine

Bovine

Sheep

Cattle

Algeria

2,658

2,287

899

534

236

87

6

78

0

16

Bahrain

525

406

62

77

118

49

5

11

20

4

Egypt

2,682

2,218

1,160

124

225

189

1

152

5

0

Iraq

1,284

1,023

722

n/a

n/a

n/a

n/a

n/a

n/a

n/a

Israel

2,008

1,464

540

25

238

118

1

110

1

14

Jordan

1,020

807

270

109

103

55

20

27

25

16

Kuwait

956

810

194

89

137

96

11

7

95

3

Lebanon

1,285

983

204

153

155

68

1

42

61

130

Libya

893

743

398

148

35

5

3

2

1

2

Morocco

1,668

1,090

580

93

71

4

0

2

0

0

Oman

1,147

739

146

157

155

96

16

17

16

1

Pakistan

1,770

502

62

14

196

1

0

0

0

0

Palestine

507

434

134

37

92

8

2

0

2

22

Qatar

275

235

42

47

45

50

9

9

11

0

Saudi A.

5,837

5,189

1,821

731

666

691

96

108

390

8

Sudan

383

310

173

20

30

0

0

0

0

0

Syria

1,010

759

228

35

92

2

0

0

8

19

Tunisia

966

649

348

35

44

4

0

4

0

0

Turkey

4,179

1,545

747

50

130

0

0

0

0

3

UAE

3,895

3,036

622

264

890

269

57

45

1

1 5

Yemen

996

852

335

102

73

101

0 6

18

8

0

The development of agriculture in many areas of the Middle East is limited by factors such as climate, lack of water, and environmental issues. Such factors strengthen the belief that the region will rely on agriculture and food imports in the future. Currently, major food suppliers are European countries, the USA, India, and Australia. The dynamic and competitive Middle East food markets are generally very open, with minimum restrictions and impediments. The general trend is liberalization of tariffs according to requirements of World Trade Organisation (WTO) membership, although the import policies and regulations vary from country to country.

MARKET REQUIREMENTS

Jordan                         Jordan is a market for sheep, cattle, stockfeed, meat and dairy products.

                                    Potential Export Market: $US 90 million per annum

Oman, Qatar, Bahrain  Export markets for sheep, some cattle, meat and fresh produce, mainly via Dubai. Oman, Qatar and Bahrain are relatively small but rich countries that could be good potential investors.

Potential Export Market: $US 60 million per annum

Turkey                         Turkey is a market for wool and hides and skins, with opportunities existing for lupin and ingredients for stockfeed.

Potential Export Market: $US 4 million per annum

Pakistan                       A wheat importer with significant potential for canola, meat and processed foods.

Potential Export Market: $US 125 million per annum

Algeria                         A potential market for mutton, lamb and dairy products (cheese). In 2004/2005, Algeria imported A$8 million of lamb and mutton. The opportunity exists for exports of cheese and broad beans.

Potential Export Market: No figures currently available to support the potential value of this market.

Lebanon                       A relatively small market for sheep, and a potential market for meat, pulses and processed foods. Lebanon is also a very interesting re-export country.

Potential Export Market: No figures currently available to support the potential value of this market.

Palestine                      A market for cattle and sheep, and a potential market for a range of processed products.

Potential Export Market: No figures currently available to support the potential value of this market.

Libya                            Libya imports meat, grain, processed foods and expertise. The services required include land management,

Potential Export Market: No figures currently available to support the potential value of this market.

Sudan                          Sudan is significant importer of wheat, valued at A$38 million in 2004/2005. Sudan needs expertise in livestock and desertification projects.

Potential Export Market: $US 45 million per annum

Morocco                       Morocco bought A$3 million of meat including 1.5 million offal in 2004/05.

Potential Export Market: No figures currently available to support the potential value of this market.

OUTLOOK FOR PRODUCTS

Meat and livestock The Middle East will remain the major market for livestock – particularly sheep, cattle and (to a certain degree) goats, as well as a relatively small market for camels. Competition, political issues, cost of products and services, and the balance between supply and demand could impact on export trends. However, with a comprehensive approach to marketing and production, the Middle East region could become the major export market for the livestock industry given that significant advances in livestock production technologies where to be adopted and implement throughout the industry. Improvements in the quality of products, sustainable supply, logistics facilities, and a proactive marketing system will increase exports of meat in the medium to long term and could become a major revenue source.

Fresh produce The Middle East has been a traditional market for fresh produce. The market is very open, and competition from America and African countries (including Egypt) is growing – although demand for fresh produce is also growing. A strong hospitality industry, development of tourism (particularly during the European winter), a growing population and limited local production offer good opportunities for fresh produce in certain countries and segments of the market. Development of logistics services, such as direct flights to the region, cool chain management and alliances provide excellent prospects for high-value produce. Of course, quality products, comprehensive post-harvesting technologies, sustainable supply and a market-oriented industry offer a good future in the Middle East, particularly in some rich Gulf countries.

Grain Cereals (wheat, barley, oats) could dominate grain export market, especially to the rest of the Middle East. The value of cereal exports if managed correctly could well exceed $US 2 Billion per annum. The grain industry has significant market opportunities in the Middle East. Egypt, Iraq, UAE, Jordan and Kuwait will rely on importing wheat for a long time, as will Pakistan and Yemen, to some extent. Competition is strong from Europe, USA, Canada and in recent years, India, due to subsidies. Consistent supply, quality, logistics and facilities are major factors that will drive market development. New varieties, access to new non-traditional markets (Jordan), and market segments in the processing industry (e.g. pasta) might provide new opportunities for the wheat industry.

It is expected that the Middle East region will remain the largest world market for feed barley, with Saudi Arabia, UAE and Kuwait continuing to be key markets. The stockfeed industry might find opportunities in livestock farming and horse racing (Dubai, Saudi Arabia). Libya provides significant opportunities for stockfeed barley and wheat, subject to competition, particularly from Black Sea countries.

POTENTIAL MARKETS

Sheep                          Saudi Arabia, Kuwait, Jordan, UAE, Qatar, Oman, Bahrain, Egypt, Lebanon, Palestine, Syria.

Cattle                           Egypt, Jordan, Saudi Arabia, Libya, Iraq, Kuwait, UAE. (Due to the policy driven by welfare issues, objectives to increase processed meat exports, costs of transports and possible competition livestock exports are expected to decline.)

Meat                             Saudi Arabia, Kuwait, Jordan, UAE, Qatar, Oman, Bahrain, Egypt, Lebanon, Morocco, Iraq, Algeria, Libya. (Exports of meat are expected to increase relevant to market size, development of the Middle East hospitality industry and policy to increase exports of value-added products.)

Barley (stockfeed)       Saudi Arabia, Kuwait, Jordan, UAE, Libya, Iraq. (Development of the local livestock industry will demand more stockfeed and stockfeed barley.)

Wheat                          Egypt, Iraq, Sudan, Yemen, Pakistan, UAE, Jordan, Libya. (The demand for wheat is envisaged to rise, according to market size and demands of the hospitality industry, particularly fast food outlets.)

Pulses                          Egypt, UAE, Libya, Pakistan. (There is permanent demand for check peas, lentils, broad beans and faba beans.

Oilseeds (canola)         Pakistan, UAE, Saudi Arabia (potentially). (A new canola crushing plant in Dubai, developments in Pakistan, and plants for canola processing in Saudi Arabia will create more demand for canola.)

Dairy                            Saudi Arabia, Egypt, UAE, Algeria, Kuwait, Qatar, Bahrain, Jordan, Iraq, Libya, Sudan. (The development of fast food outlets demands more and more processed products including cheese and yoghurt. There is permanent demand for milk powder in the region.)

Horticulture                 Saudi Arabia, UAE, Egypt, Bahrain, Kuwait, Qatar, Oman. Market size (including a developing hospitality industry) and the improvement of logistics facilities (two direct flights to Dubai) are major factors in the development of exports of fresh produce, flowers.

Fisheries                      UAE, Saudi Arabia, Kuwait, Jordan, Lebanon. (Premium markets (five star hotels) for crustaceans and the jewellery industry (pearls) are potential segments for the fishery industry.)

Wool                             Turkey, Egypt, Pakistan. (The opportunities for wool exports in the region are limited due to local production and the production of cotton. However, there is demand for wool in Turkey, Pakistan, and Egypt.)

 
     

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All rights reserved. Revised: October 23, 2019 .