- 5/20/2024
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00:00This program is brought to you by Rayaat.
00:15Welcome, viewers, to a new episode of Mawdo'iyah.
00:30In February this year, the Saudi government announced an important decision to reduce agricultural production costs for two years.
00:42It aims to reduce the costs of the agricultural producers, which will strengthen their competitiveness and the sustainability of agricultural production in the Kingdom.
00:54The agricultural sector has seen a growth in agricultural investments in the Kingdom, and recently achieved a noticeable development that reflected the value of the agricultural product, which reached 100 billion riyals in 2022.
01:09In addition to the decisions and other steps taken by the government to enhance the sustainability of agricultural production, we are discussing tonight with Engineer Mohamed Abdel Latif, Deputy Assistant to the Ministry of Environment, Water and Agriculture.
01:24Welcome, Engineer Mohamed, and thank you for being here tonight with Mawdo'iyah.
01:29Welcome, Ms. Maysa, and I am happy to be here with you. Thank you for having me.
01:35Let me start with the important decisions that we have heard from the Cabinet recently, specifically regarding the state's tolerance of the national plans for the introduction of agricultural production for a specific class for about two years.
01:51What is the importance of this decision today, Engineer Mohamed, and how will it contribute to the support of the agricultural sector, as well as encouraging local production, which the Kingdom greatly needs?
02:02First of all, Ms. Maysa, allow me to start by expressing my sincere gratitude and appreciation to the Chief of the Haramain Al-Sharifain and His Highness the Master Wali Al-Ahd for this decision, which we believe will have a great and direct impact on the support of the agricultural sector and to enhance the achievement of the objectives and the achievement of sustainability in the agricultural sector.
02:29This decision will undoubtedly have a very important impact on enhancing the capabilities of the agricultural sector, whether in enhancing agricultural productivity and reducing costs, or also in enhancing agricultural investments in important agricultural sectors.
02:48Today, we have the dairy sector, the fish sector, and the protected agriculture sector, all of which are promising sectors, and we witness leaps and bounds in them. Undoubtedly, this decision is an important milestone in enhancing the capabilities of the agricultural sector.
03:07When we talk about specific sectors and categories, Engineer Mohamed, what are the categories that may be included in this decision, and do you think that two years is enough to encourage local production and farmers?
03:24As for the period, this is based on the decision of the Ministry of Agriculture. It took two years to implement this decision. The results of this decision and its effects will be evaluated, and what is achieved will be increased. This is related to the duration.
03:43As for the commercial sectors or the sectors in which this decision is included, the truth is that it includes about 400 commercial sectors, all of which are related to the agricultural sector, whether it is related to production inputs related to operation, for example, such as fertilizers, fertilizers, or seeds.
04:13Or what is related to production inputs related to the operation of dairy sectors, such as dairy farms, or, for example, in dairy sectors, today we are talking about the equipment used today in dairy products, such as drinks and cereals, etc.
04:33The truth is that it includes very large categories, covering almost everything related to production inputs in the agricultural sector.
04:42Yes, the most important are small producers and farmers, Engineer Mohamed, and also cooperative associations and rural institutions. Will there be a direct impact of this decision on reducing costs for small producers, and how much do you expect the costs will be reduced after this decision?
05:03By God, there is no doubt today that our expectations are that there will be a very positive impact on enhancing agricultural production, and of course, when we talk today about agricultural production, we have several sectors contributing to this production, including agricultural companies, as well as individuals, cooperative associations, and agricultural institutions.
05:29We believe, and we are certain, that all these sectors will benefit from the impact of this reduction, which will result in a reduction in agricultural production costs.
05:41Today, we know that agricultural production ingredients include fertilizers, fertilizers, seeds, and also energy, in addition to other costs related to cost factors.
05:59So, production inputs vary from one product to another, but they contribute to a good percentage, sometimes reaching up to 50-60% of the total operating costs.
06:11As a result, a reduction in the cost of production will directly contribute to a reduction in costs, and thus, it will enhance production and encourage investors and farmers of various types to increase production, which will reflect in its role in achieving the goals of enhancing the self-sufficiency of agricultural products, especially basic agricultural products.
06:38Is this going to be the total cost of all the countries that are importing production inputs from, Mr. Mohamed, or is there a specific country?
06:49And today, which is the largest sector that is being imported?
06:52Absolutely correct.
06:53Go ahead.
06:55Yes, the truth is that all the production inputs that are imported from outside the Kingdom, regardless of the source of these inputs,
07:08will be applied to the Republic of Africa as long as these inputs are among the targeted inputs, according to the decision, and they are also imported by the farmer or the beneficiary directly, or also through agricultural companies operating in the agricultural sector.
07:29There is no specification for any country in the Republic of Africa.
07:35But currently, where are most of the agricultural production inputs coming from?
07:39I mean, which countries, Mr. Mohamed?
07:41And is the ministry also trying to open new markets for production inputs?
07:48When we talk about production inputs, we are talking about a variety of products.
07:56When we talk about fertilizers, the Kingdom of Saudi Arabia is a pioneer in the production of fertilizers.
08:04For example, when we talk about nitrogen, which is present in urea, or phosphate in milk, these are locally produced fertilizers.
08:16But there are also products that are imported from outside the Kingdom.
08:19They are imported from several European countries.
08:21We also import fertilizers from China.
08:26There are also fertilizers that are made locally.
08:30And there are also fertilizers that are imported and implanted from European countries and also from East Asian countries.
08:37We also have equipment related to agricultural production in the dairy sector or in the dairy sector.
08:47These are also imported from European and American farms and also from East Asian countries.
08:54As you know, Saudi Arabia is an open country to the world.
09:01And we receive equipment and inputs from all over the world without any limit.
09:08Of course, it depends on what we see and what the investor sees is suitable for his needs.
09:14But are we respecting some of the production inputs to achieve self-sufficiency without relying on importing some of these inputs today, Engineer Mohamed?
09:24How do you see the self-sufficiency map in the Kingdom's inputs?
09:29As I mentioned in the previous question, we are self-sufficient today in terms of the basic elements of fertilization through what the Saudi company produces in the past.
09:44We have self-sufficiency.
09:47And of course, a large part of the production is exported from outside the Kingdom, as you know.
09:52We also have self-sufficiency in the production of seeds in the wheat sector.
09:57It is produced locally.
10:00Also, a large part of our needs related to agricultural fertilizers is produced locally.
10:07When we talk about the agricultural sector in the wheat sector, I think we are fully self-sufficient in this area.
10:19But in fact, we have other sectors that need to import production inputs.
10:25When we talk today about the wheat sector, we have the import of production inputs related to mills.
10:33We also have the import of production inputs related to infrastructure and construction related to factories and factories.
10:43Although there is a part that is produced locally.
10:47This also applies to the dairy sector and other production sectors.
10:52Yes.
10:53The goal is also to achieve food security in the Kingdom.
10:56How far will this step lead to in order to diversify the production and agricultural base in the Kingdom, Engineer Mohamed?
11:04Are the steps still far to achieve this food security in your opinion?
11:09Or have we started in the middle of the road in light of the steps taken by the government and the ministry?
11:16The truth is that with the vision of the Kingdom in 2030, it undoubtedly had very ambitious goals,
11:25especially for the agricultural sector, to enhance food security and increase productivity.
11:32If we look at some numbers related to self-sufficiency, we will see that we have exceeded the self-sufficiency rate in dates.
11:43We have reached 124% self-sufficiency rate today.
11:47We also increased the self-sufficiency rate from less than 50% in 2016 to 74% in 2023.
11:58This also applies to fish today.
12:01We have reached important numbers that reach 63% self-sufficiency rate.
12:05We have also achieved a very high self-sufficiency rate in red meat, which has reached 61%.
12:20We have also achieved a very high self-sufficiency rate in dairy products, which has reached 70%.
12:39This is a very important number.
12:41We are still working to raise this rate in the coming period.
12:47In the dairy sector, the self-sufficiency rate has reached 118%.
12:53There is also export of a percentage of production to neighboring countries.
13:00In the Kingdom of Saudi Arabia, we have reached very important numbers in enhancing self-sufficiency in agricultural products.
13:12Also, wheat is a strategic commodity today.
13:18We have reached a self-sufficiency rate of approximately 40% of the local need for wheat.
13:29Thank God, all the numbers are positive and are moving according to the target.
13:37We will stop with a short break.
13:39Mohamed Abdel Latif, Deputy Assistant to the Ministry of Environment, Water and Agriculture.
13:45We will also talk about the decision to allow the establishment of agricultural production factories outside the industrial sites and their impact on the sector after the break.
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14:43Welcome again.
14:45Our discussion continues tonight with the engineer Mohamed Abdel Latif, Deputy Assistant to the Ministry of Environment, Water and Agriculture.
14:54We will talk about the many decisions that the government and the Council of Ministers have made to support the agricultural sector.
15:01Welcome again, Mr. Mohamed.
15:03After the decision to allow the establishment of agricultural production factories outside the industrial sites and their impact on the sector after the break,
15:12we have seen a decision that is not less important than the introduction of agricultural production factories outside the industrial sites and their impact on the sector after the break.
15:19What is the importance of this decision and to what extent do you think the factories are capable of being outside the industrial sites today?
15:32There are requests that have been made by the factories to implement this decision.
15:40Indeed, this decision is very important and the ministry has supported it.
15:47The importance of the existence of factories in the industrial sites is very important.
15:55Economically, we know that the factories related to agricultural production have logistical roles related to the transportation between the production area, the manufacturing area and the marketing areas.
16:11The nature of the agricultural products, as we know, is related to the importance of the proximity of the factories to the production areas.
16:23Therefore, this decision will undoubtedly strengthen and contribute to strengthen the food industries based on agricultural production inputs.
16:34Today, we have an agricultural sector related to dates factories.
16:40Today, we also have a sector related to semolina factories, which depend on agricultural production.
16:48Today, we also have a sector related to food manufacturing, whether in potato factories, such as French fries or potato products, or chips factories.
17:04Last week, a French fries factory was opened in the company's headquarters.
17:18This is a result of the implementation of this decision.
17:25I would also like to point out that this decision will undoubtedly have very positive effects on enhancing the added value of agricultural production.
17:37We also know that agricultural production has a special feature related to the season, and therefore, there is an advantage in production at specific times.
17:54Through the existence of factories that understand this advantage, we will be able to reduce loss and loss, and also achieve an added value for these products.
18:04Is today's decision based on existing factories or new factories, Engineer Mohamed?
18:10If it is only based on new factories, is it required that the old factories be moved to other industrial sites?
18:25The actual decision is based on both. It is based on existing factories and future factories.
18:31As for existing factories, according to the actual decision, the location of these factories will be corrected.
18:38If the factories work in accordance with the decision-making mechanisms, such as in the case of dates factories,
18:55then the location of these factories will be corrected through a formal committee for this purpose.
19:00As for new factories, today we are trying through the ministry to enhance and announce this decision to achieve the maximum benefit for all parties working in the agricultural sector,
19:25so that they can benefit from this decision, as we mentioned, to establish a factory for the benefit of agricultural production,
19:34in any way, of course, and according to any picture, whether it is related to what you mentioned today,
19:38that is, between products related to the production and use of humans, or also industrial products related to organic fertilizers and the like.
19:49How many factories do we have today for agricultural production in the Kingdom?
19:53And how are they being distributed geographically, Engineer Mohamed?
19:59In fact, as a number, I do not have the exact number of factories today,
20:04but what I would like to assure you is that since the Ministry of Finance issued the decision to allow the establishment of factories,
20:12in fact, we have received many requests to establish factories,
20:17such as factories for the establishment of fertilizers and compost,
20:22as well as factories for dates and also factories for agricultural food products.
20:32It is clear to us that there is indeed an acceptance from farmers in a sense of the importance and the agenda of establishing such factories in the agricultural sectors.
20:45In contrast, you are developing the agricultural record, which is being issued to farmers, farmers and fishermen, Engineer Mohamed.
20:53What is the most important achievement today in this agricultural record, and what are your objectives from it?
21:02Of course, the agricultural record today, when we talk about the agricultural record,
21:07I can describe it in two words, so that the picture is clear to the viewers.
21:13We can say that it is the ID card of the farm.
21:17It is a record that contains all the details that any agricultural sector contains,
21:24whether the details related to the site or related to the activity or related to the area,
21:30or related to the details of agricultural activities within this sector.
21:36In fact, today we have 660,000 farms at the level of the Kingdom.
21:42Up to now, 53,000 agricultural records have been issued.
21:48I would like to point out that the work in issuing the record began at the end of 2022.
21:57In 2022, we issued about 13,000 records, and in 2023, 26,000 records.
22:04In the current year, 2024, at the end of the first quarter, we reached about 12,000 records.
22:10In fact, there are jumps in the number of issued records.
22:19When we talk about the importance of the agricultural record or the benefits of the agricultural record,
22:25in fact, today it is considered the organizational tool through which it is possible to obtain all the services
22:34provided by the Ministry of Agriculture, as well as the other sides,
22:37such as obtaining agricultural work through the Ministry of Human Resources.
22:43Yes. You also have a program to classify the farms and regions,
22:48according to this agricultural record, Engineer Mohamed.
22:53How are these farms and regions classified, and what areas are being focused on in this program?
23:04Of course, the actual classification includes all the regions in the Kingdom.
23:09Today, the Kingdom of Saudi Arabia contains 13 administrative regions.
23:13Each region contains a number of farms.
23:16Of course, the areas between them differ in the number of farms, increase or decrease, and also in the size of the area.
23:22All areas in the Kingdom of Saudi Arabia are classified today.
23:27As I mentioned today, we have 660,000 farms.
23:30We also have an ambitious program today, in fact, to update the data of agricultural activities in the farms,
23:36and I think this is a decisive and important factor today to enhance the benefit of the agricultural record
23:44by obtaining updated data.
23:47We can, in fact, apply agricultural policies and also enhance the achievement of goals
23:55by knowing the areas of production and the types of agricultural activities in different areas.
24:01Also, if you don't mind, I would like to add something related to the agricultural record today.
24:07Today, the agricultural record is a very important tool to enhance the health of consumers
24:17and guarantee the safe access of products to the final markets and the public markets
24:25by purchasing the agricultural record as a document to enter any product into the markets
24:31so that we can guarantee the source of these products and guarantee the health and safety of these products.
24:38In addition to all this development, Engineer Mohamed, you are also using advanced technologies
24:45for the development of the agricultural sector.
24:48What is the size of the consultations and investments for the agricultural sector in your field?
24:58Of course, there is no doubt today when we talk about this work.
25:02This is a very powerful work through the use of very advanced technologies.
25:08We used the latest remote sensing technologies in this field.
25:16We also have new technologies for drones to photograph crops.
25:23In addition to continuous field visits through specialized teams
25:30and the use of tablets to collect data for these farms.
25:36I would like to point out that this work took more than three years to collect these data
25:45and we are still continuing the process of continuously updating the data
25:50because we know that any data, whether for agriculture or any sector,
25:56cannot be stopped at a certain level.
25:58There must be an update of these data to ensure that it is always updated for the real agricultural production in the sector.
26:10We wish you all the best.
26:12Engineer Mohamed El Abdel Latif, Deputy Assistant to the Ministry of Environment, Water and Agriculture.
26:18Unfortunately, our time is up, but very important data about the agricultural sector.
26:23Thank you very much.
26:28Thank you.
26:30These were some of the related data and the most important decisions of the agricultural sector by the government and the Cabinet.
26:39We will meet again next week with a new episode from the Kingdom.
26:44Good bye.
26:53This program was brought to you by RAIAT.
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