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

The development of the internet, in particular in Australia, is important for the delivery of information about Australia to the global community. There still exists however big information gap between Australia and Middle East. This web-site will hopefully provide information to all parties on developments in the agriculture sector and related issues that could prove of interest. 

AARG is an Australian based consultancy and agricultural company that has enormous experience in the field of seeking to maximise investment returns in the agricultural sector and government relations. It is our intention to create an absolutely new source of information for Australian and Middle Eastern businessman from which interested parties can pursue detailed information from accredited sources. With tremendous experience in agriculture and related opportunities AARG is interested in the development of partnership between Australia, China and the Middle East. This web-site will provide available information and links necessary for economic and investment research on Australia and build the bridge between Australia and the world. Developing strong reciprocal trading agreements in;

  • cultural understanding.
  • education and employment strategies
  • grain and commodity trading
  • strategic planning

Within the idea of the information exchange between Australia, China and the Middle East, AARG has planned a unique commodity trading and strategic planning program developed specifically to eliminate from the market traditional spikes in the cost of grains and other commodities. The program once fully implemented will provide both buyers and producers certainty in market share and price.

Meat

AARG's  Australia exports red meat and livestock to more than 100 countries, representing over 60% of the industry's production, making it critical to protect and expand our access to overseas markets.

The outlook for global beef consumption is positive, largely underpinned by growth in population and household wealth in developing markets, particularly Asia. Australia produces only 3% of global beef production, but accounts for around 17% of world trade and has remained one of the top-three largest exporters for over seven decades. While Australian beef faces a number of headwinds, particularly around remaining price competitive, there are many opportunities for targeted growth.

Australian beef globally is facing a range of opportunities and challenges:

  •      Growing household incomes are providing many consumers the ability to increase protein consumption, with those shifting into the middle-upper income brackets often seeking to improve the quality of meat they consume.

  • ·    In developed markets, consumers are seeking differentiated segments within the beef category – such as grassfed and grainfed product or certified breeds and raising claims. Australia’s diverse production system allows the industry to target a broad range of differentiated opportunities across markets.

  • ·    In many mature markets, growing consumer interest and awareness of provenance, sustainability, animal welfare, food safety and traceability provide messaging opportunities for Australian beef brands and underpin ambitious industry-wide programs for Australia to differentiate itself.

  • ·    The high price of beef, compared to competitor proteins such as chicken and pork, will continue to test growth and keep the category sensitive to economic conditions and consumer purchasing power. Furthermore, relative to major competitors, the high price of Australian cattle, compounded by additional costs along the supply chain, reinforces the need for Australia to focus on differentiating itself from competitors and providing a value proposition to consumers.

  • ·    Growing production and exports from key competitors, particularly the US and Brazil, will intensify competition in coming years, especially in Asian markets. For now, strong global demand, led by import growth in China, has soaked up additional beef on the global market but a slowdown would negatively affect farm gate cattle prices in Australia.

Grains

AARG’s Grain Trading is an innovative new trading tool that offers buyers and sellers an alternative marketing platform. It has been developed through extensive consultation with buyers and producers to offer the most beneficial features for both parties.

  • Access to the largest number of buyers and sellers in Australia and Overseas
  • Fast and safe contracts (Drafts available within 24 hours)
  • Provides price information on recent sales
  • Provides a safe trading environment with national commodity standards

AARG’s Grain Trading links those with grain with those who need grain both in Australia and Overseas. It works by users listing the product that they wish to buy or sell, this list can then be searched by other users and contracts can be entered into between users.

Let this web site be the result of your season’s hard work. It will make sure that it was all worth while. There is no cost involved with putting up an offer, so give it a go.

 

To register please click on the link Register

Market Assessment

Middle East – Background and Information

The Market

The target market over the next five years is the core agribusiness and export market, on a global basis. The initial focus region will be the Middle East by working extensively with governments and individual stakeholders to develop and constantly improve the wide range of products and services we offer.

 
 

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:

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.

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

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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

  • The war in Iraq and the War against Terrorism.

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

  • A slowdown in the world economy.

  • Animal health and welfare issues.

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

  • Labor and labor costs.

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

 
 
Estimated Population Increase in the Middle East
 

Countries and populations in the Middle East

Country

Population 2010 (Million)

Estimated Population 2020 (Million)

Bahrain

0.8

1.8

Kuwait

3

5

Oman

3.5

7

Qatar

0.7

2

Saudi Arabia

30

35

United Arab Emirates

3.5

7

Iraq

30

36

Yemen

25

30

Pakistan

182

210

Jordan

6

8

Lebanon

4

5

Turkey

78

90

Israel

7

8

Palestine

1.7

2.5

Syria

20

22

Algeria

36

40

Egypt

84

96

Libya

7

9

Morocco

34

42

Tunisia

11

14

Sudan

38

42

 

Source: FAO 2010, Projection 2020

The Middle East accounts for about 8 per cent of the world’s net imports of agricultural products, with imports of agricultural products growing to US$38.7 billion in 2015. Food accounts for 70 per cent, or US$27.5 billion, of this figure.

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All rights reserved. Revised: October 24, 2019 .