Supply and Demand of Agricultural Products in the UAE

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Supply and Demand of Agricultural Products in the UAE

The agriculture in UAE is reserved to dates, vegetables, fish, eggs and dairy products (Ministry of Foreign trade, 2011). Tunnel farming is the way forward to agriculture in UAE, more and more people are learning the techniques involved in tunnel farming. For a country like UAE which is a desert the land available for farming is limited, and the water resources are also limited, therefore using the latest technologies in farming plays a vital role in controlling the supply and demand of agricultural products in UAE.

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Water plays an important role in increasing or decreasing the supply of local agricultural products in UAE. One of the studies revealed that the consumption of water in UAE on individual basis is one of the highest in the world (Gornall & Tordorova, 2009). For a country with already a very low export of agricultural products and local production, high water consumption makes it even more complex to cater for shortages of agricultural products in UAE.

The Government in UAE is involved in discovering new ways to increase the land available for cultivation by using desert reclamation initiatives (Salama, 2008). The government has a history of investing in tree planting schemes and irrigation systems to increase the total agricultural production of UAE. The planting schemes involve planting trees which help crops to survive wind and also stop soil erosion, the schemes also involve initiatives to plant shrubs and date palms. According to figures released by Ministry of Agriculture and Fisheries, UAE is producing 600,000 tonnes of crops approximately which include, cucumbers, tomatoes, lettuce, aubergines, cabbages and feed for live stock. The Government of UAE is rapidly increasing the land available for cultivation by converting desert into cultivated land one of the example is the 40,500 hectares of land available for cultivation along the Liwa Oasis, which has been converted from dessert into cultivatable land, in UAE there are more than 6,000 greenhouses and 22,700 farms.

UAE is also committed to invest in agriculture overseas on islands and other parts of the world, because 85 per cent of the agricultural products in UAE are imported which include wheat, rice and corn. This is a major threat faced by a country set to become the business hub of the world with an increasing population, therefore the supply and demand forces play a major role in agriculture in UAE. Another strategy followed by UAE to tackle food shortages is to create food storage facilities where large quantities of agricultural products could be stored for longer time periods.