Can the United Arab Emirates Mitigate the Importation of Food?

Can the United Arab Emirates Mitigate the Importation of Food?

Executive Summary

The United Arab Emirates has tended to import food. However, the country recognizes that too much reliance on imported food products will not sustain their need in the long run. Therefore, the nation has set aside policies that try to intervene on the issue. In the same manner, the primary stakeholders are always implementing new strategies to tackle the menace. There are other alternative policies that the nation can heed to in the attempt to control the matter. This policy paper considers the former and the latter plans and analyzes to provide the best alternative based on specific evaluative criteria.

Stakeholders have stated several policies to reduce overdependence on the importation of food. These policies include keeping reserves of food (stockpiling), domestic production of food, high technology agricultural methods, and research and development. Analysis of these policies gives a clear picture of which action the government and other stakeholders should take to curb the problem effectively. The paired comparisons approach of evaluation does the analysis. Ultimately, the initiative to buy and lease land from abroad suffices as the most efficient method that will reap benefits to all stakeholders while aiming at the stated policy goals.

Keywords: policy, food security, UAE, stakeholders

PROBLEM ANALYSIS

Problem Background

Many countries are currently concerned about food security, the United Arab Emirates (UAE) included. Even though technology and economic structures are developing at a steady rate, the world still holds 793 million people who are still malnourished (Fischbach, 2018). Being one of the countries located in the Middle East and North Africa (MENA) region, the UAE faces some challenges respective to the location. According to the United Nations (UN) Food and Agriculture (FAO), the MENA region experiences scarcity of freshwater resources due to unfavorable climatic conditions (Fischbach, 2018). Therefore, the UAE experiences low availability and stability of food due to unstable climate changes.

The country has tried to curb the menace through various means. One of the strategies that the UAE uses to ensure food security is through proper diplomatic and trade relations Fischbach, 2018). For example, good ties provide that the UAE can easily reach out to external markets and deal with efficiency. The other significant investment of the UAE is the ports. Since the trade ports are in good condition, the country can efficiently perform importation of food supplies at its convenience (Fischbach, 2018). The nation has made prior attempts to contain the issue of food security despite the challenges in the region.

Food security in the UAE impacts the population. When the UAE fails to avail food to the citizens, then the number of malnourished people increases. Food security directly affects the people of those living in the country. The government also plays a vital role in controlling food security—for example, the appointment of a Minister of State for Food Security (Fischbach, 2018). Therefore, the government and the people of the UAE are the key stakeholders.

Definition and Diagnosing the Problem

Defining the Problem.

Food security primarily revolves around making food available for the citizens. The Committee on World Food Security explains food security as availability, access, stability, and proper utilization of the food system of a country (Fischbach, 2018). Other organizations look further on whatever impact this food makes on the population consuming. FAO states that food security is the provision of a stable food supply that consumers can easily access, and the consumption converts to better nutrition levels (Fischbach, 2018). The concept of food security encompasses three areas, supply, accessibility, and nutrition. Therefore, a country achieves food security when food is available, accessible, and the general population has proper nutrition.

There do exist several factors that hinder a nation from achieving food security. One of the factors that diminish food security and increase dependency on imports is climate. For example, the MENA countries like the UAE cannot produce enough cereals to cater for the population due to the adverse climatic conditions (Fischbach, 2018). According to Bill and Keys, climate change in the UAE makes rice and wheat the most insecure products in the country (2015). Therefore, climate changes hinder the production of food, which increases the dependence of the UAE on food imports.

The ability of the population to access food is a factor of food security. The citizens of a particular country need to have economic, social, and political resources that are necessary. A proper balance between these factors will promote the country to produce its food. In the same accord, the citizens can also purchase the food at their comfort. According to Glavan, the unstable flow of food in a country such as UAE will ultimately lead to the rise in food prices within the country (2016). Concurrently, households that live under the national range would divert most of their expenses to food. As a result, the general population suffers. Therefore, the fight to create an affordable food purchasing environment causes the UAE to depend on food imports highly.

Diagnosing the problem.

The overall security of UAE is another cause for concern. Internal and external insecurity causes the suppliers to underperform in their purpose of delivering the size the population needs. UAE has the problem of chokeholds along the significant trade passages, which hinders the movement of food. For example, the Suez Canal and Strait of Hormuz are two areas that insecurity prevails (Fischbach, 2018). The country faces a problem of food shortage when the government does not place enough measures to secure food routes. Therefore, the high dependency on imported food makes the lives of the citizens even more difficult.

The fluctuation of fuel prices is another constraint to UAE’s food independence. The nation has a rigid kind of economy that solely depends on petroleum export. Fischbach states that UAE heavily relies on revenue earned from fossil fuel export to purchase food from the same external market (2018). If oil prices fluctuate at the international level, then the country has to shuffle the amount of food imported so that the two sectors can balance. Currently, UAE is in a position to finance any uncertainties due to the fluctuation of prices. However, a direct shock on the country’s economy would mean that less food for the people hence no food security.

The rate of food consumption in the UAE is increasing. One of the reasons for the high demand for food is the rise in the number of tourists visiting the country. The second reason is the growing population. The Gulf Cooperation Council (GCC) countries will expand food consumption from 48.1 to 59.2 million metric tons (MT) in the period 2016 to 2019 (Fischbach, 2018). Thus, the large population is also a propagator to the high dependency on food imports of the UAE.

The Policy Goals

Goal 1: Diversify food sources.

As a country that has a high dependency on exports, the UAE can mitigate other food sources. Since there is minimal room for agriculture given the unfavorable climate, UAE can focus on sustainable growth to reduce the chances of food system failure (Fischbach, 2018). In having multiple sources of acquiring food, especially local means, then UAE will attain food security.

Goal 2: Domestic production.

The nation can find ways to improve the amount of food produced locally. Although the climate is not conducive, and there are minimal freshwater resources, the UAE government should boost the level of self-sufficiency. When sustainable production occurs at the local level, then the nation can achieve food security (Fischbach, 2018). In the same accord, food security from local lands will reduce the high dependency on imported food.

Goal 3: High tech agriculture.

Production technology can change in ancient ways. The country can invest in modern farming techniques that favor the climate as well as the type of soil that is available. Some examples of new farming technology that UAE can adopt to include soilless farming, hydroponics, dry agro, and modern greenhouses (Fishbach, 2018). New technology is an excellent way to maintain high productivity, which reduces dependency on food imports.

Goal 4: Research and Development (R&D).

The proper amount of research is a way to ensure the availability of food. For instance, UAE can attain multiple technologies of production, new growing methods, and alternative crops from the usual few. Research offers the proper level of knowledge that there could be better ways of attaining food security other than imports (Fischbach, 2018). Consequently, the UAE can find better alternatives to sustain the growing population.

PART TWO

Evaluation Criteria

Criterion 1: Technical feasibility.

The UAE government has already made prior investments in modern farming technology. The ancient production methods prove that there is still a lot of insufficient supply. The government is already working with many ministries to promote tech advancement. For instance, the Abu Dhabi Farmers’ Services Centre (ADFSC) is an agency of the government whose mandate is to help modern farming ways (Fischbach, 2018). The Ministry of Climate Change and Environment is another branch that assists farmers in R&D (Fischbach, 2018). Private sectors also have a hand in promoting technology. Pure Harvest is one of the private sector companies that has established the first high technology greenhouses to produce tomatoes throughout the year (Fischbach, 2018). Therefore, the technology available should fit into the needs of the farmers and the environment.

Criterion 2: Cost-effectiveness.

UAE is highly dependent on food imports. Fischbach affirms that the imports of the country will shift to higher rates from $100 billion to $400 billion in the coming ten years (2018). To counter such effects, UAE chooses to keep the taxes on imported goods low so that trade resumes. Moreover, the nation maintains an open trade market. The two mechanisms ensure that food is available for the masses throughout the year.

Criterion 3: Sustainability.

The climate of the UAE adversely affects the type of production method that the country incorporates. Vertical farming is susceptible to both the large scale urban farms and small rural scale agriculture. In the UAE, segments in the private sector are collaborating with real estate managers to incorporate home-based vertical gardens (Fischbach, 2018). However, this formula deems unfit for such an area that is suffering from insufficient water supply encompassed with a scorching environment.

Criterion 4: Economic efficiency.

The government of UAE ensures that food is available at the most favorable prices. In this approach, there is massive subsidization on the menu. The ADFSC protects the farmers in the country from price fluctuations through the provision of ‘Minimum Price Guarantee (MPG)’ (Fischbach, 2018). Consequently, the farmers are supposed to pay commissions only at times when they are trading above the MPG. However, the fault comes in the part that the government decides to withdraw this kind of support because the farming industry will inevitably collapse. Therefore, the present policy on subsidization is only fit with the government playing a significant role.

Policy Alternatives

Policy 1: Technological Developments.

The Emirates government can look forward to better farming technology. The current strategy on the ground, vertical-based farming, is not compatible with the low water supply.

However, the company can venture into hydroponics. Hydroponics is an alternative way to solve the water problem. In the process of activation, the technology can save up to 70% of water, which allows for more extended growing periods (Fischbach, 2018). On a national scale, the technology can suffice for the amount that the country spends on exports. Moreover, the hot climatic conditions require proper cooling systems. The government of the United Arab Emirates needs not to ignore the technological advancement of the region, considering that the climate is hot.

Policy 2: Local Production.

The country can foster better ways to address price fluctuations. In the effort to pile up stocks of food, the country readily addresses short term issues that include risk of supply and change in food commodity prices. The ADFSC offers farmers with the required training so that they can still produce even in hard times (Fischbach, 2018). The organization strategizes each farming season where the farmers provide suggestions on which crops they would prefer. This method ensures that the plants produced to fit into the market. Since the country has a high gross domestic product (GDP), it can sufficiently cover the market demand for such goods (Fischbach, 2018). Without the intervention of the government through the ADFSC, the farmers would incur massive losses of unplanned marketing. Therefore, this strategy of reducing the cost of production for farmers is also a tactic against dependency on food imports.

Policy 3: Food Stockpiling.

Stockpiling refers to keeping vast reserves of food to maintain stable supply in times of low availability. The ADFSC, established by the UAE government, is a branch that plans emergency reserves, stockpiling primary commodities, and strategizing for emergency (Fischbach, 2018). In a similar accord, the country manages to steadily supply barley, wheat, and rice for half a year. The Emirates established the Etihad Mills in the Fujairah Free Zone so that the citizens have a stable supply of their staple foods like wheat, rice, and corn (Fischbach, 2018). However, this mechanism is still on trial to find out whether it can suffice for the unpredictable fluctuation of imported food products. For UAE to fully incorporate stockpiling at the national level, it would require spending huge finances for the infrastructure. Storing is essential for maintaining steady commodity prices only on a short term basis.

Policy 4: Investing in Agriculture Abroad.

The UAE has inadequate local agricultural sustainability. The country tackles this drawback by investing in different agricultural sectors. Following the shortage of food in the 2007-2008 period, the nation began buying and leasing land from other nations in east Africa (Fischbach, 2018). The government teamed up with the private agribusiness sector to facilitate this activity. The primary purpose of acquiring foreign agricultural land was to enable easy accessibility to food production bases, which substantiate to steady food supply even in times of crisis. International farming is limited to developed countries that have stable governance. Countries like the USA, Australia, and Eastern Europe are suitable for collaboration in terms of foreign agriculture (Fischbach, 2018). With the benefit of increased food production, leasing, and buying international farming, the land still cannot insulate UAE from high dependence on food imports.

Policy Comparisons

Technological Development.

Implementing modern methods of farming would impact the criteria in several ways. Hydroponics is seemingly better than vertical-based farming because they rely on a little amount of water (Fischbach, 2018). However, the government requires has to spend a lot of money. One of the ways that the government would spend numerous is when implementing these new structures. A lot of research and resources are necessary during the change from ancient technology to modern ones. The other cause for concern is that farmers would have to undergo rigorous training sessions so that they update their farming skills to this new technology. Therefore, advancement in technology would impose the burden of high expenditure during the transition process.

Local Production.

Engaging farmers and private sectors during local production have some impact. If chanced, farmers can identify essential staple foods respective of the season. Some of these foods include quinoa, potatoes, and fish can lead to maximum sustainability of the country’s agricultural sector (Fischbach, 2018). The government can consist of the ADFSC in the production of these local foods through subsidizing and incenting. Such a move would be useful in the long run since it would maximize returns earned from investments in the country as a whole. However, the stakeholders would be inclined to perform thorough research to arrive at the foods that are culturally acceptable, cheap, and highly nutritious. Therefore, incorporating local ways of production would need subsidization and a twist in technology.

Food stockpiling.

Keeping foods for steady supply during crises is another policy with its implications. First of all, the method means that the government has to invest more in building enough food stores such as Etihad Mills. This process is very costly because creating food reserves would require establishing structures. Moreover, the government needs to implement efficient storage mechanisms to preserve the foods over long periods due to the hot climate of the Emirates (Ajaj et al., 2019). However, importing and storing food products from other countries means that locally based farmers would lose importance in the long run. Therefore, such a policy is right for ensuring sustainable food supply, but farmers would suffer in the long term because people would devalue their services.

Investing in Agriculture Abroad.

Investing in agricultural lands found abroad would need government in several ways. First of all, the government would have to set aside a lot of finances to cater for purchases or leasing. The other implication of this strategy is that the local farmers and other private sectors would not compete favorably. Since the better part of the produce is happening abroad as opposed to the homeland, then the general population would suffer a poor lifestyle due to low income (Ajaj et al., 2019). The upgrade of this means, however, comes in the form of steady food production. A stable source of farm products substantiates to stable and sufficient food supply to the citizens.

Choosing the Optimum Policy Using Paired Comparisons

First and foremost, the paired comparison gives a distinction between ‘technological development’ and ‘local production.’ Advancing from old methods of farming to new ways such as the hydroponics proves to be water reliable. However, this method would force the government to invest heavily in setting up the structures and systems for preserving food. Farmers would also need a lot of training to adjust. Conversely, local production ensures that the agricultural segment of the country is comfortable with the type of food (Qureshi, 2017). The government can also reduce the cost of production through subsidization, thereby increasing the morale of the local industry. Advancement in technology as a policy is effective except that it would derail stakeholders’ money and time as well. In this first comparison, domestic production stands to be better.

Secondly, the stockpiling of food for future needs is also a comparable alternative policy. When the government realizes this opportunity, then a lot of money is directed towards setting up structures that act as food reserves (Fischbach, 2018). The farmers are also vulnerable in that whatever they harvest, they cannot sell at favorable prices because stocks of food are already available. On the contrary, focusing on local production ensures that there are favorable market prices which encourage the farmer as a stakeholder to produce more. In this contest, domestic production provides sustainable production.

Lastly, there exists the option to venture into farming in foreign lands, better known as agriculture abroad. This resolution is discouraging in terms of the high amounts that the primary stakeholders need to invest to make it feasible (Fischbach, 2018). Also, the local farming sector would encounter a lot of competition, given that the better portion of supply comes from outside the country. However, this alternative provides the citizens, the affected stakeholders, with the opportunity of sustainable supply throughout the year. Conclusively, investment in agriculture from abroad is by far the most promising technique.

Conclusion

The UAE is a nation that depends highly on the importation of food from other countries. The country belongs to the MENA region of changing climate conditions, which hinder agricultural practices. Several regulations are in place to reduce the problem with the low success rate. For example, the establishment of the Emirates Mills that to store and maintain a steady food supply is very costly. Moreover, advancement into modern farming techniques like hydroponics is conversant, given the scarcity of water. However, the financial resources for implementing and time to train farmers do not suffice for such a policy. The problem of the UAE’s dependence on food imports is at the mercy of investing in agriculture abroad.

References

Ajaj, R.M., Shanin, Susan, M., Mohammed, A. (2019). The Challenges of Climate Change and food security in the United Arab Emirates (UAE): From deep understanding to quick actions. Current nutrition and food science, 15(5), 422-498, doi: https://doi.org/10.2174/1573401314666180326163009

Fischbach, T. (2018). Advancing Food Security in the UAE. Policy Paper.

Qureshi, A.S. (2017). Sustainable use of marginal lands to improve food security in the United Arab Emirates. Journal of experimental biology and agricultural sciences, 5(Spl-1-SAFSAW), doi: http://dx.doi.org/10.18006/2017.5(Spl-1-SAFSAW).S41.S49

Table 1: Issue / Stakeholder Matrix

Table 2: Goal / Policy Matrix