Image of the Horticulture Sector

8/7/2019 Image of the Horticulture Sector

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MB 09/03/2007

Image of the Horticulture

Sector

Kingdom of Saudi Arabia

March 2007


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Situation Analysis

Sector / country information

Problem tree (simplified)

Vision on the supply chain Stakeholders analysis

SWOT


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Sector / Country Info.

Total production of vegetable in 2005 is 2.5million tons, 20 % in greenhouses

Greenhouse distribution: 44% in RiyadhProv., 24% in Eastern Prov., 11% inQassim Prov.

Self sufficiency: 84%

Net Imports: 477,000 tons

Total population:24 millions

Per capita: declining from 121 kg in 1998 to68,6 km in 2006 (source: Euromonitor)(more efficient consumption and lesswaste???)


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Sensitive Issues

labour / saudization,

source of food for the

region

marketing, wholesalemarket, market

researches

SAAB financing (are

farmers complaining?); cooperatives?

Processing?

Export !

Quality measures

Food safety

National policy

Lots of sensitivity in the

chain


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PROBLEM TREE!


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Farmers are not cooperating

No marketing / promotion

Expensive input material &services

High costs of production

strain on quality

Customer is ignorant lack of awareness

Strain on demand

- consumption /

capitaLack of

confidence

SafetyPrice

Lowest prices for produce

Depressed Farmers

less profits / sometimes loses

Dominance of middlemen in

the wholesale market

Bad behaviourlack of trust

No transparency

No joint commitment /obligations between

members and board

Interest is not clearExisting cooperatives,socially based / GOV

funded

No quality measures /standards


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Weak processingopportunity

Very limitedInternational demand

Export logistics not organized

Nominal exports to UK & GCC

Absence ofcooperation in SC

Wasted opportunity /

inefficient sector / loss

National

Losses UnemploymentLong term

social problems

Lack of marketresearch and studies

Weak consumerfeedback awareness

Absence of consumerorganizations

Research organizations arenot professional / realistic

Frustrated demand / consumption

Depressed FarmersSmall > out ofbusiness / acquisitions

Medium > Struggle / keep their heads low

Large > struggle / not growing

Health concerns, more diseases

Low productivity

Absence of market

information

GOV org.

Market

WS Market

Excessive useof chemicals

Lack of training /extension service MOA

no inspection /monitoring, SFDA in

establishment

Safety concernby consumer


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How is the chain organized


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Growers

Production is

490,000 tons

vegetables in

GH

Consumersvolume consumedis 10% smaller

because of waste

in the chain

processingWholesale market

Local retail

market

Small grocery

shops

Chain

supermarkets /

Hypermarkets


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Supply Chain!

Forms of cooperation:

Vertical cooperation over the chain (limited

large producers/ supermarkets)

Very primitive horizontal cooperation

Not organized

RESULT

Lack of cooperation over supply chain(low efficiency / waste of opportunities &

investments / burden on national economy)


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Stakeholders

Main players:

King MOA / SFDA / MOW Farmers Supermarkets

Secondary Players:

WS Market Food Processing Research Inst. Universities

Responsive players:

Agri Bank - Agri Comm. / Agri Dept. / Agri Coop

Negative:

Consumers


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StakeholdersOrganization Characteristic Interest Resources

King Main player Food Security Policy / power

MOA / SFDA Policy maker Salary Policy maker

Farmers Main player Profit Money / feasibility

studiesAgri Bank Implement policy Negative

Agri Dep CCI Secondary Salary Admin / monitoring /

feedbackAgri Committee Initiator Organization

Cooperative(s) ?

Research Inst. Secondary Far from needs

Input suppliers Secondary Profit New tech

Wholesale mrkt Secondary Profit Logistics,

technology / newproducts /Supermarket Main Profit

Food processing Main Profit

Consumer Secondary Food safety /

availability /

cheap

Feedback

Active &

Playingstrong role

Playing

weak role

Only

responsive

role

Not

playing his

role


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SWOT Hortisector KSA

Strengths WeaknessesCost of production

Favourable weather conditions

Attractive investment costs

Research

Local experts

Opportunities ThreatsOrganic production

Health concernsGrowing demand in the region

Water survey is not finished

Not cooperative

Documents

Image of the Horticulture Sector