Arab League Organization for Agricultural Development: Supply Chains, Previous Pledges Likely to be Disrupted

Director of the Arab League’s Organization for Agricultural Development (AOAD), Dr. Ibrahim El-Dukheri. (AOAD)
Director of the Arab League’s Organization for Agricultural Development (AOAD), Dr. Ibrahim El-Dukheri. (AOAD)
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Arab League Organization for Agricultural Development: Supply Chains, Previous Pledges Likely to be Disrupted

Director of the Arab League’s Organization for Agricultural Development (AOAD), Dr. Ibrahim El-Dukheri. (AOAD)
Director of the Arab League’s Organization for Agricultural Development (AOAD), Dr. Ibrahim El-Dukheri. (AOAD)

The Director of the Arab League’s Organization for Agricultural Development (AOAD), Dr. Ibrahim El-Dukheri, warned that food security in the Arab world was shrouded in ambiguity, adding the region would not be safe from the repercussions of the ongoing war in Europe.

In an interview with Asharq Al-Awsat, El-Dukheri noted that supply chains would weaken, or sometimes interrupt, especially if the Russian-Ukrainian war continues.

He stressed that the Nouakchott Declaration, which was recently adopted during the 37th General Assembly meetings in the Mauritanian capital, had highlighted the issue of food insecurity, which would worsen with the war in Europe, the Covid-19 pandemic and climate change.

Immediate action

“Urgent measures must be taken to guarantee food security in the Arab region and maintain supply chains,” El-Dukheri underlined, adding: “In this context, we presented what was known as the Permanent Program for Arab Food Security, which is an integrated study that was conducted during the past two years in coordination with the General Secretariat of the League of Arab States and Arab foreign ministers.”

He pointed to the sustainable food security initiative, which was launched at the same time as the Nouakchott Declaration and detailed the arrangements required to achieve public food security.

Production increase

The most important points agreed upon, according to El-Dukheri, include the launch of the Sustainable Arab Agricultural Development Strategy 2030, and the Arab Program for Sustaining Food Security, which aims to increase productivity and agricultural production levels of basic food commodities by a minimum of 30% during the next ten years.

This goal can be achieved through the use of technological packages and the correct standards for inputs, especially drought and salt tolerant seeds and fertilizers, in addition to the development of irrigation systems for irrigated and rain-fed crops, the expansion of the use of agricultural mechanization, and the adoption of smart agriculture.

The AOAD director said the declaration focused on seeking to find a specialized financing mechanism for agricultural development and Arab food security, to implement the projects of the Arab Program for the Sustainability of Food Security, which would be led by the AOAD in close cooperation and coordination with the relevant Arab and regional countries and organizations.

Arab investments

According to El-Dukheri, the Arab Program for the Sustainability of Food Security focuses on investments and trade.

He explained that the program looks at the existing agricultural infrastructure in order to increase the efficiency of the various modern irrigation systems, with the aim to expand water capacities and subsequently, promote agricultural investments in the sector of rain-fed crops.

“This gives us a wide ability to increase the volume of total production in the Arab world, while also improving agricultural integration, by looking at the mechanisms of intra-Arab trade between countries,” the Arab official remarked.

Current situation

Furthermore, he stressed that the ongoing war between Russia and Ukraine has two major implications.

El-Dukheri pointed to great fear over the interruption of supply chains, as “we know that Russia and Ukraine are countries that produce a major commodity, such as wheat.”

Thus, supply chains will deteriorate or be interrupted at times, he warned.

El-Dukheri noted that with the continuation of the war, many European countries would think about sustaining their national needs and perhaps fail to meet export pledges that were made before the eruption of the conflict.

Other options

He stressed that food security in the Arab world was shrouded in ambiguity. He added that the region would not be safe from the repercussions of the crisis in the near term, as prices of food are likely to soar, making them inaccessible for a large number of people.

As for the alternatives, including the option to resort to imports from the United States or Canada - given that they are wheat-producing countries – El-Dukheri explained that the shipping costs would be very high and would thus increase the prices of the products.

Most affected countries

The most affected countries in the Arab region are those in which the levels of income or development are limited, he explained.

The Arab region relies mostly on imports. Consequently, Gulf states, which enjoy financial and security stability, would be less impacted than countries that suffer from economic hardship, conflicts and instability, according to El-Dukheri.

Investment opportunities

El-Dukheri said the sustainable program for Arab food security presented a clear and comprehensive vision that took into consideration the capabilities of the Arab world in terms of the existence of suitable lands, rainfall rates, water resources, weather, and viable crops, according to a comprehensive and integrated study.

He pointed to another supporting document under the title, Finance Mechanism, which explains the means to support the program through “national and regional agencies,” including the Union of Arab Banks, Arab Chambers of Commerce, and all organizations that operate under the umbrella of the General Secretariat of the Arab League.

“It is necessary to have arrangements to reduce the gap and differences between the Arab countries,” El-Dukheri urged, explaining that the program was aimed at increasing self-sufficiency to 50%, while the rest would be imported from outside the Arab region.



Oil Prices Edge up as Market Assesses Trump's Tariff Plans

FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo
FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo
TT

Oil Prices Edge up as Market Assesses Trump's Tariff Plans

FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo
FILE PHOTO: A ship is moored near storage tanks at an oil refinery off the coast of Singapore October 17, 2008. REUTERS/Vivek Prakash/File Photo

Oil prices picked up on Tuesday, after the previous session's sell-off, as the market assessed US President-elect Donald Trump's planned trade tariffs on Mexico and Canada and his aim to increase US crude production.

Oil prices had fallen more than $2 a barrel on Monday after multiple reports that Israel and Lebanon had agreed to the terms of a ceasefire in the Israel-Hezbollah conflict. A senior Israeli official said Israel looks set to approve a US plan for a ceasefire on Tuesday, but some analysts said Monday's sell-off in oil prices had been overdone.

Brent crude futures were up 43 cents, or 0.6%, at $73.44 a barrel as of 1414 GMT. US West Texas Intermediate crude futures were at $69.38 a barrel, up 44 cents, or 0.6%.

Brent crude futures fluctuated between $73.30 and $73.80 a barrel in afternoon trading.

"Today’s intra-day fluctuations are probably more of the function of assessing Trump’s overnight pledge to impose tariffs on Mexico, Canada and China," PVM analyst Tamas Varga said.

On Monday, Trump said he would impose a 25% tariff on all products coming into the US from Mexico and Canada.

The vast majority of Canada's 4 million bpd of crude exports go to the US Analysts have said it is unlikely Trump would impose tariffs on Canadian oil, which cannot be easily replaced since it differs from grades that the US produces.

On Monday, Reuters reported that Trump's team is also preparing an energy package to roll out within days of his taking office that would increase oil drilling.

A senior executive at Exxon Mobil said on Tuesday that US oil and gas producers are unlikely to "radically increase'' production.

OPEC+ MEETING

Market reaction on Monday to the Israel-Lebanon ceasefire news was "over the top" as the broader Middle East conflict has "never actually disrupted supplies significantly to induce war premiums" this year, said senior market analyst Priyanka Sachdeva at Phillip Nova.

Elsewhere, OPEC+ at its next meeting on Sunday may consider leaving its current oil output cuts in place from Jan. 1. The producer group is already postponing hikes amid global demand worries.