It is important for the state to encourage agricultural and livestock breeding projects in neighboring countries by providing easy loans to investors in conjunction with investment protection conventions. JEDDAH — More than three million sheep from Sudan and Somalia arrived at Jeddah Islamic Port (JIP) this week to meet the demand for sacrifices during the Haj. Authorities hope the livestock will help stabilize market prices which have been badly affected by global price rises. Sulaiman Bin Saeed Al-Jabri, Chairman of the Livestock Merchants Committee at the Jeddah Chamber of Commerce and Industry (JCCI), was quoted by Al-Madina Arabic daily as saying that with the arrival of more sheep, prices would be stabilized. Stabilization of market prices, he explained is a result of two factors — the huge shipment of livestock and the decision of King Abdullah, Custodian of the Two Holy Mosques, to raise the subsidy of fodder by 50 percent. The Saudi livestock business is heavily subsidized because it is one of the basic pillars of the Saudi economy. Recent increases in the price of livestock and in currency exchange rates in countries like Australia have forced Saudi businessmen to stop importing livestock. When the supply decreased, market prices went up. The JCCI committee approached the ministries of agriculture, commerce and industry and proposed subsidizing livestock imports to reduce market prices. “This plan worked in other GCC countries where subsidies on barley and food kept prices completely stable,” Al-Jabri said. However, he insists that “the sector needs long-term support, such the easing of import procedures and veterinarian examinations at seaports to reduce the number of sick animals. “This support would lower the chances of returning livestock which entails losses for the importer and less supply in the market,” Al-Jabri said. The committee has also called for providing importers and those who sell livestock with land for breeding in order to give the country a strategic reserve of livestock. “We should also encourage importers and businessmen to expand investments and activities, which would lead to food price security. This would spare them the effects of global price fluctuations over the year,” he said. It is important for the state to encourage agricultural and livestock breeding projects in neighboring countries by providing easy loans to investors in conjunction with investment protection conventions, he said. The committee believes this strategy will serve the Kingdom's yearly requirements for products, such as barley, wheat, corn and livestock.
