The Reality of the Agriculture Sector in the Emirate of Abu Dhabi. The Reality of the Agriculture Sector in the Emirate of Abu Dhabi
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1 The Reality of the Agriculture Sector in the Emirate of Abu Dhabi The Reality of the Agriculture Sector in the Emirate of Abu Dhabi
2 Executive Summary: The agriculture, livestock and fish sector forms a primary source of food products, which the Government of Abu Dhabi focuses on developing to achieve food security, by increasing agricultural production and raising its contribution to GDP in the Emirate of Abu Dhabi. However; the contribution of this sector to GDP had decreased from 2.1% in 2004 to 1% in 2009, which makes the emirate vulnerable to the vagaries of food prices in global markets, and hence affected by inflation as a result of importation from abroad. Food, drink and tobacco in 2007 constituted 14.4% of the total consumer basket in the Emirate of Abu Dhabi. Low-income groups were increasingly influenced by the hiking prices of food commodities compared to high-income groups, due to their high proportion of spending on food commodities, where the percentage spent on food commodities out of income was 28.7% for low-income groups, compared to 14.8% for high-income groups, according to the2007/2008 Household Income and Expenditure Survey. It is therefore essential to review the status of the agricultural sector in the Emirate of Abu Dhabi, as a necessary step to diagnose problems and recommend remedies for this vital sector, as a prelude to developing a strategy for the development of the sector. The study highlights the current situation in the agriculture sector, with emphasis on production and consumption, to spur efforts for developing a strategy for this important sector to enable optimal utilization of the limited agricultural resources and maximize output to cover part of the food needs of the population. This field study was aided by a questionnaire to assess the reality of the agricultural sector and identify the most important problems facing farmers. Questionnaires were distributed to 350 farmers, whereas 106 questionnaires were received from respondents constituting 30.3% of the total number of targeted farmers.
3 Results 1. The contribution of the agricultural sector to GDP declined from 2.1% in 2004 to 1% in 2009; whereas value added to the sector went down by 0.3% in 2009, compared to This came as a result of the decline in total capital formation by 1.3% during the period 2005 to The total cultivated area decreased by 0.1% during the period , however; the total quantity of agricultural production increased by 26% during the same period, which indicates improvement of farm productivity, though many farms ceased to produce. 3. The area of arable land is limited, and constitutes not more than 15.6%. 4. Despite the drop in the efficiency of investment in the agricultural sector from 9.1 in 2004 to 8.9 in 2009, it was still higher compared to the manufacturing sector where it reached 4.4 in 2009 compared to 3.4 in This was due to the government support through the purchase of the final products from the farmers at high prices, which makes the agricultural sector more attractive for investment. 5. Farming concentrated on Rhodes grass which is grown by 95% of the farmers. 6. Organic agriculture utilizes a small area in UAE, which does not exceed 0.05%. 7. Agricultural loss ranges between 5% and 70%. 8. Animal husbandry farming is limited. 9. There are many problems facing the farmers; most importantly: a. Lack of government supporting services and agricultural guidance. b. Deficiency in water for agriculture. c. High water salinity. d. Marketing problems. Stipulating the amount of Rhodes grass to be grown and the assessment of productivity, especially for dates produced. e. Lack of an agricultural plan. f. lack of maintenance of farms, water wells and submersibles
4 g. The lack of paved roads leading to farms. 10. Research programs and applications of modern technology in agriculture are necessary, as some of these applications lead to increased agricultural production by 40%. 11. The use of scientific methods in irrigation is important for preserving the limited water resources; as such methods preserve about 50% of irrigation water used. There is also a plan to reduce water consumption in the Emirate of Abu Dhabi by 30%. 12. There are government efforts to develop the agricultural activity. These include: a. The integration of the Agriculture Sector with the Abu Dhabi Food Control Authority b. Developing of a new agricultural policy. c. The opening of the Farmers Service Center d. The completion of the Environment Agency project of soil survey in the Emirate. e. Increasing foreign investments in agricultural activity. f. Government support, through purchasing of crops, providing credit, offering guidance services and pesticides. Recommendations: 1. Formulation of an integrated agricultural development plan, by formation of a committee, representative of the Abu Dhabi Food Control Authority as the entity responsible for the agriculture sector in the emirate, including the rest of the relevant authorities such as the Abu Dhabi Council for Urban Planning, Department of Economic Development, the Environment Agency, research bodies and universities. 2. Focusing more on raise the contribution of the agricultural sector to GDP. 3. The expanding agriculture especially that the area of arable land does not exceed 15.6%.
5 4. Diversification of agricultural crops and not concentrating only on Rhodes grass, so as to raise the rates of self-sufficiency in main crops. 5. Expanding the application of organic farming. 6. Studying the causes of agricultural loss, and setting a mechanism to reduce it. 7. Establishing animal husbandry farms in agricultural areas, away from residential centers, so as to achieve integration between agriculture and livestock production. 8. Conducting a survey of agricultural and animal production. 9. Providing material and financial support and disbursement of subsidized feed for all livestock keepers to encourage citizens to invest in this activity. 10. Supporting Fish and animal resources. 11. Drawing an annual agricultural plan, and enlightening farmers of its details informing the farmers in advance before the beginning of the season. 12. Application of modern technology in agricultural field and activities. 13. Provision of fresh water for farms
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