IS IT MEAT YOU’RE LOOKING FOR?
As one of the world's biggest consumers of meat, Kuwait is under pressure to diversify its sources of livestock and to establish domestic farms.
Though expected to maintain food security over the next decades, Kuwait's dependence on expensive food and livestock imports is likely to take a toll on the country's national budget—especially given that the small Gulf state recently accounted a budget deficit for the first time in 16 years. In the wake of a low oil price environment, the government increasingly voiced its intention to privatize state-owned, food-security sustaining companies. With all sectors having been affected by privatization in line with the government's five-year development plan (2015-2020), food prices are likely to increase significantly. In order to balance supply and demand, meat prices could expectedly double.
According to the latest statistics from the United Nations Food and Agriculture Organization (FAO), meat consumption in Kuwait averages around 120kg of meat per person per year. In light of steady regional population growth, the demand for meat in Kuwait is further estimated to rise even more over the next 10 years. However, desertification as well as a consequent lack of arable land has largely prevented Kuwait from cultivating domestic livestock that would ensure food security.
As a result, the Gulf state has largely been dependent on imports of foods and livestock paid for by oil revenues. In order to maintain food security, however, the government has established a number of companies such as the Kuwait Flour Mills & Bakeries Company, the United Poultry Company, and the Livestock Transport & Trading Company (KLTT) to not only import livestock and slaughter animals in compliance with the halal ritual, but to also import and produce basic foods.
As for Kuwait, Australia, and New Zealand constitute the major suppliers of sheep, for instance. Over the past 25 years, however, the number of heads exported to Kuwait has decreased from up to 170 million heads in 1990 by a little more than half. This was mainly due to drought, high costs for grazing of cattle, and animal rights organizations' objections against halal slaughtering.
Although Kuwait has long registered this decline to be unsustainable in the long run, alternative “countries of sheep origin" such as India, China, or Ethiopia pose additional challenges. These do not only comprise higher shipment costs, but also an increased likelihood of livestock illnesses, having arisen from less sophisticated food infrastructures in the countries of origin.
Osama Boodai, CEO of the KLTT—the world's largest supplier of sheep—talked to TBY about his own initiatives in this regard: “For a new operation, we are starting with 3,000 ewes, local lambs, which we buy from the market to breed locally for the future. We will never cover the quantity needed for the country, but we want to start with something. The 3,000 will allow us to reach 50,000 in the next five years. This will form the new generation, which we will take for breeding."
On a similar note, Dr. Sultan Alkhalaf, the Director General of Dar Al-Khalaf for Agricultural Studies & Consultations, told TBY: “What we did at Dar Al Khalaf, for instance, was to prepare a feasibility study and consultation service for a Kuwait investor to establish a sheep production farm on 2.5 million sqm in Ethiopia. This project will produce 10,000 hybrid sheep, crossbreeding Ethiopian sheep with Arab Awassi sheep. Projects such as this will have a great effect on providing livestock for Kuwait."
IS IT MEAT YOU’RE LOOKING FOR?
TABLE OF CONTENTS
Guest Speaker
Dato’ Sri Haji Mohammad Najib bin Tun Haji Abdul Razak, Prime Minister , Malaysia
TBY talks to Dato' Sri Haji Mohammad Najib bin Tun Haji Abdul Razak, Prime Minister of Malaysia, on the growing contribution that Islamic countries are making to the global economy and how Islamic financing can offer new opportunities to industry and academia.
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HE Khaled Nasser Abdullah Al-Roudan, Minister, Commerce and Industry (MoCI)
TBY talks to HE Khaled Nasser Abdullah Al-Roudan, Minister of Commerce and Industry (MoCI), on tools and strategies for diversifying the economy, the role of international players in supporting a wider range of sectors, and the rapidly developing food industry.
read articleInterview
HE Yousef Al-Ebraheem, Advisor , Al-Diwan Al-Amiri
TBY talks to HE Yousef Al-Ebraheem, Economic Advisor to the Al-Diwan Al-Amiri, on the need for a rejuvenation of Kuwait's infrastructure to support an economy that has come a long way and the role education will play in delivering the expertise required by the society.
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Dr. Khaled A. Mahdi, Secretary-General , Supreme Council for Planning & Development (GSSCPD)
TBY talks to Dr. Khaled A. Mahdi, Secretary General of the Supreme Council for Planning & Development (GSSCPD), on the breakdown of Kuwait's long-term economic plan, the KPIs that will benchmark its success, and what Vision 2035 means for the nature of the economy.
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Sheikh Dr. Meshaal Jaber Al Ahmed Al Sabah, Director General, Kuwait Direct Investment Promotion Authority (KDIPA)
TBY talks to Sheikh Dr. Meshaal Jaber Al Ahmed Al Sabah, Director General of the Kuwait Direct Investment Promotion Authority (KDIPA), on launching an investment promotion conference, attracting the right partners for PPP, and expectations for the year ahead.
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HE Dr. Mohammad M. Al-Zuhair, Executive Chairman, Kuwait National Fund for Small and Medium Enterprise Development
TBY talks to HE Dr. Mohammad M. Al-Zuhair, Executive Chairman of the Kuwait National Fund for Small and Medium Enterprise Development, on empowering young Kuwaitis, IT and entrepreneurialism, and the growth of fintech.
read articleFocus: Still all in the family?
Merchant families in Kuwait
Family-owned businesses play a major role in the Kuwaiti economy. However, with many approaching the third generation of management, they are starting to come across unique problems that may pose issues for the greater economy.
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HE Sheikh Abdullah Ahmad Al-Humoud Al-Sabah, Director, Environmental Public Authority (EPA)
TBY talks to HE Sheikh Abdullah Ahmad Al-Humoud Al-Sabah, Director of Environmental Public Authority (EPA), on how oil companies can contribute to Kuwait's vision on sustainability and the various projects that are coming to fruition.
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Dr. Samira S. Omar Asem, Director General, Kuwait Institute for Scientific Research (KISR)
TBY talks to Dr. Samira S. Omar Asem, Director General of the Kuwait Institute for Scientific Research (KISR), on commercializing the green innovations coming from R&D initiatives, the role of collaboration across multiple sectors, and projects that we should expect to see more of in the future.
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Khaled Abdulrazzaq Al Khaled, Vice-Chairman and CEO, Boursa Kuwait Company
TBY talks to Khaled Abdulrazzaq Al Khaled, Vice-Chairman and CEO of Boursa Kuwait Company, on the takeover of the Kuwait Stock Exchange and the role the bourse plays in both the privatization of government entities and as a source of capital for family businesses.
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HE Essam Abdul Mohsen Al-Marzouq, Minister, Oil & Minister of Electricity and Water
TBY talks to HE Essam Abdul Mohsen Al-Marzouq, Minister of Oil & Minister of Electricity and Water, on cooperation with other ministries, the private sector's role in energy, and upcoming regulations.
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Ghalib Shlash Safouq, Assistant Undersecretary for the Construction Projects Sector, Ministry of Public Works
TBY talks to Ghalib Shlash Safouq, Assistant Undersecretary for the Construction Projects Sector at the Ministry of Public Works, on Kuwaiti companies, the country's healthcare facilities, and the role of international companies.
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Khaled K. Al Mashaan, Vice-Chairman & CEO, ALARGAN International Real Estate Company
TBY talks to Khaled K. Al Mashaan, Vice-Chairman & CEO of ALARGAN International Real Estate Company, on drivers of growth, operating throughout the region, and real estate prices in Kuwait.
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Tawfiq Ahmed Bin Sultan, Chairman, Middle East Telecommunications Company (METCO)
TBY talks to Tawfiq Ahmed Bin Sultan, Chairman of the Middle East Telecommunications Company (METCO), on e-government potential, the future of the economy, and the state of technology uptake in Kuwait.
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Sheikh Yousef Abdullah Sabah Al-Nasser Al-Sabah, Director General, Kuwait Ports Authority (KPA)
TBY talks to Sheikh Yousef Abdullah Sabah Al-Nasser Al-Sabah, Director General of Kuwait Ports Authority (KPA), on his operational plans for the near future and turning Kuwait into a regional logistics hub.
read articleInterview
HE Khaled Nasser Abdullah Al-Roudan, Acting Minister, State for Youth Affairs
TBY talks to HE Khaled Nasser Abdullah Al-Roudan, Acting Minister of State for Youth Affairs, on e-platforms and blended learning programs, developing ICT skills, and preparing young people for tomorrow.
read articleInterview
Eng. Ali Hussein Al Youha, Secretary-General, National Council for Culture, Arts and Letters
TBY talks to Eng. Ali Hussein Al Youha, Secretary-General of the National Council for Culture, Arts and Letters, on the activities of the Council and works to preserve and enhance Kuwait's cultural heritage.
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