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Australian Agricultural  Resources Group Pty Ltd
Australian Company Number: 109 146 205 Australian Business Number: 44 109 146 205 
 
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  Commodities Register

The development of the internet, in particular in Australia and throughout the Middle East, is important for the delivery of information about Australia to the Middle East 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 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 Arab 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 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.

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).

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:

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

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

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

  • Developing services, expertise, training, and implementation of Agriculture developing projects.

  • 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.

  • Hospitality sector in the region.

Estimated Population Increase in the Middle East

Countries and populations in the Middle East

Country

Population 2003 (Million)

Estimated Population 2010 (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

Source: FAO 2003, Projection 2010

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 2003. Food accounts for 70 per cent, or US$27.5 billion, of this figure.


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All rights reserved. Revised: December 01, 2012.