Saudi Arabia Sets Record Production Indicators to Ensure Food Industry Sustainability

Participants at a panel discussion during the InFlavour exhibition currently held in Riyadh. (Asharq Al-Awsat)
Participants at a panel discussion during the InFlavour exhibition currently held in Riyadh. (Asharq Al-Awsat)
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Saudi Arabia Sets Record Production Indicators to Ensure Food Industry Sustainability

Participants at a panel discussion during the InFlavour exhibition currently held in Riyadh. (Asharq Al-Awsat)
Participants at a panel discussion during the InFlavour exhibition currently held in Riyadh. (Asharq Al-Awsat)

Saudi Arabia achieved record indicators in food production to ensure the industry's sustainability locally, achieve self-sufficiency in some products, and move to the stage of exporting products to foreign markets.

The Saudi Ministry of Environment, Water, and Agriculture reviewed these indicators on the sidelines of the InFlavour exhibition, the largest global event for food sustainability and official trade event for the worldwide food and beverage ecosystem.

InFlavour is taking place at the Riyadh Exhibition and Convention Center from Oct. 29 to 31, with more than 40,000 visitors, 400 exhibitors, 200 speakers, and 200 local and international investors representing 143 countries.

According to indicators, wheat production witnessed a 400 percent increase between 2017 and 2022, vegetables and fruits rose by 58 percent and 205 percent, respectively, fish increased by 73 percent, and dairy grew by 44.

CEO of the National Fisheries Development Program Ali al-Shaikhi told Asharq Al-Awsat that Saudi Arabia has exceeded the rate of self-sufficiency in many products, such as eggs, dairy, and others.

Shaikhi indicated that the Kingdom has moved to the stage of exporting products to foreign markets, noting that the fish and poultry sectors also witnessed rapid growth in production volume.

The Ministry of Environment, Water and Agriculture is capable of balancing between the recent increase in population and the volume of visitors coming to Saudi Arabia by sustainably raising production.

He revealed the Ministry's strategic objectives in the next phase by launching several initiatives to provide food products at competitive prices to the consumer.

Shaikhi explained that the COVID-19 pandemic and the Russian-Ukrainian war were lessons for countries to increase their volume of food industry production and reach self-sufficiency.

Saudi Arabia worked, in integration between the public and private sectors, on a strategic plan that proved successful in the short term directly, he said, adding that the Kingdom is open to all nations to exchange information and build strategic partnerships.

The InFlavour exhibition allows industry leaders to communicate with food and beverage industry experts from around the world.

It offers unique experiences and expertise in various culinary arts and hospitality and proposes creative solutions in food production and industry.

It contributes to developing the promising sector in the Kingdom and achieving Vision 2030.



Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
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Dollar Resumes Upward Trend, Euro Hits Lowest since Nov 2022

US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
US Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

The dollar hit new multi-month highs against the euro and the pound on Thursday, the first day of 2025 trading, as it built on last year's strong gains on expectations US interest rates will remain high relative to peers.

The euro fell to as low as $1.0314, its lowest since November 2022, down around 0.3% on the day. It is now down nearly 8% since its late September highs above $1.12, one major victim of the dollar's recent surge.

Traders anticipate deep interest rate cuts from the European Central Bank in 2025, with markets pricing in at least four 25 basis point cuts, while not being certain of even two such moves from the US Federal Reserve, Reuters reported.

The dollar was hitting milestones across the board and the pound was last down 0.65% at $1.2443, its lowest since April, with its fall accelerating after it broke through resistance around $1.2475.

"It's more of the same at the start of the new calendar year with the dollar continuing to extend its advances in anticipation of Trump putting in place friendly policies at the start of his term," said Lee Hardman, senior currency analyst at MUFG.

US President-elect Donald Trump's policies are widely expected to not only boost growth but also add to upward price pressure. That will lead to a Fed cautious about cutting rates too much further, in turn underpinning US Treasury yields and boost dollar demand.

A weaker growth outlook outside the US, conflict in the Middle East and the Russia-Ukraine war have also added to demand for the dollar.

The dollar also reversed an early loss on Thursday to climb against the Japanese yen, and was last up 0.17% at 157.26.

It reached a five-month high above 158 yen in late December, potentially putting pressure on the Bank of Japan, which is expected to raise interest rates early this year, but possibly not immediately.

"If dollar/yen were to break above 160 ahead of the next BOJ meeting, that could be a catalyst for the BOJ to hike in January rather than wait until March," said Hardman.

"Though for now markets are leaning towards March after the dovish comments from (governor Kazuo) Ueda at his last press conference."

Even those who are more cautious about sustained dollar strength think it could take a long time to play out.

"The dollar may be vulnerable – but only if the US data confound market expectations that the Fed doesn’t cut rates more than once in the first half of this year, and not by more than 50bp in the whole of 2025," said Kit Juckes chief FX strategist at Societe Generale in a note.

"There's a good chance of that happening, but it seems very unlikely that cracks in US growth will appear early in the year – hence my preference for taking any bearish dollar thoughts with me into hibernation until the weather improves."

China's yuan languished at 14-month lows as worries about the health of the world's second-biggest economy, the prospect of US import tariffs from the Trump administration and sliding local yields weighed on investor sentiment.

Elsewhere, the Swiss franc, another victim of the recent dollar strength, gave back early gains to last trade flat at 0.90755 per dollar.

The Australian and New Zealand dollars, however, managed to break away from two-year lows touched on Tuesday. The Aussie was 0.36% higher at $0.6215 having dropped 9% in 2024, its weakest yearly performance since 2018.

The kiwi rose 0.47% to $0.5614.