produce - Eurofresh Distribution

1
marketS
Dubai, the new
Eldorado
Imports of fruit and vegetables have jumped 0%
within one year in Dubai, the door to the fast
growing Arabian Gulf countries.
The Arabian Gulf is witnessing growth
in population and tourism and moving
towards higher quality in all fields.
Markets are growing fast ? Imports of
fruit and vegetables, for instance, grew
by 12% in volume and 40% in value in
2007 ? but are yet not mature. Due to
fast development, wholesale, retail,
logistics and goods safety structures
face many problems.
Dubai World’s Economic Statistics are
impressive:
- total non-oil foreign trade grew by
29.6 per cent in 2007 and reached AED
678.5 billion (US$ 185 billion),
- direct exports in 2007 registered an
increase of 48% year on year to AED 27
billion (US$ 7.4 billion),
- direct imports rose by 35% to AED
297.7 billion (US$ 81.3 billion),
- re-exports also registered a remarkable
28.7% growth in 2007 to reach AED
101 billion (US$ 27.6 billion).
Table 1. Share of fruits and vegetables (fresh and processed) in Dubai imports
IMPORTS 200 200
Tons AED (M) Tons AED (M)
All imports of all commodities into Dubai 2 ,880, 11 219,8 1 , , 8 29 ,
All imports of vegetable products into Dubai ,819, 9 ,8 2 ,2 ,1 9, 2
Variation(200 in comparison to 200 ) +12% + 0%
Import share of fruits and vegetables 12. % .2%
Table 2. Dubai External Trade Statistics for 2007: Vegetable products
EUROFRESH
DISTRIBUTION
IMPORTS EXPORTS RE-EXPORTS
200 200 200 200 200 200
TONS AED (M) TONS AED (M) TONS AED (M) TONS AED (M) TONS AED (M) TONS AED (M)
,819, 9 ,8 2 ,2 ,1 9, 2 1 , 19 121,20 1 2 1,00 , 1 2, 0 1,0 ,018 2,809
Table 3. Top 10 suppliers of fruits and vegetables
(dried or fresh) and nuts to Dubai in 2007
Weight (tons) Value(AED M)
1 India 1 1 .2
2 Iran 2 02 2 1 .91
China 1 9 8. 1
Iraq 1 20 10 . 0
South Africa 119 0 .
Pakistan 10 11 11 .
Philippines 882 2 1 . 2
8 Egypt 8 10 . 2
9 Australia 0 1 . 0
10 USA 8 . 8
Source: Dubai Customs Statistics Department
According to Sultan Ahmed Bin Sulayem,
Chairman of Dubai World,
«2007 has been a phenomenal year
for Dubai. Statitics confirm the emirate’s
ability to sustain rapid economic
growth despite the worries at global
levels. It is particularly encouraging to
see Dubai’s exports are growing faster
than imports», thanks to its being a
regional economic hub for emerging
economies.
About 4 Billion Dollars of Fresh
Produce to the Gulf
With an increased consumption of
vegetables and fruits, the Middle
East market shows modern trends of
conscious and healthy nutrition. The
table 1 describes the role of the fruit
and vegetable sector in the economy
of the UAE as a whole, taking the
example of imports.
The total import value of fruit and
vegetable products from all importers
into Dubai in 2007 was about 10 billion
AED, compared to 7 billion in 2006 (table
2). The imports of fresh produce relating
to chapter 7 and 8 of the HS code
system were worth AED 3,657 million ,
which is almost exactly 1 billion US$,
with a re-export share of 36%. Dubai is
the trade hub of the UAE and the other
5 booming Gulf countries. It can only
be estimated that the total imports of
fresh fruit and vegetables in the GCC
accounts for 3 to 4 billion US.
Dubai as a regional hub
Table 4. Imports of Fresh Oranges
into Dubai in 2007
Suppliers of
over 1 0 tons
Weight
(tons)
Value (AED)
Price per kg CIF
Dubai (AED)
1 South Africa ,11 1 , 9 , 1 2.1
2 Egypt 22, 92 28, 9,8 8 1.2
Australia , 19, 22,0 2 2. 8
Spain 1, 29 ,9 ,198 .
Italy 1,2 ,99 , 8 .1
Brazil 1,029 2,0 ,20 1.98
Pakistan 00 9 , 2 1. 9
8 Argentina 2 , 2. 9
9 Iran 220 222, 1.01
10 China 180 12, 1 2.8
11 USA 1 1,0 , 1 .89
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Dubai is linking one of the fastest
growing consumer markets, the Arabian
Gulf, with producer markets in
the region and, on a larger scale,
is connecting global producer and
consumer centers (see the table 3 for
the main destinations according to Dubai
External Trade Statistics, 2007).
While imports of low value products
are dominated by neighboring and
low cost countries such as India, Iran
and China, quality products are also
imported from farther destinations.
By weight the USA ranks 10th but by
value it is the second largest country.
An example is fresh oranges: while the
market is dominated by South Africa
and Egypt, products from Spain and
Italy have a decent market share in the
higher quality segment. (table 4)
The role of Dubai as a hub for further reexport
to other GCC countries should
not be over- or underestimated. The
table 5 presents the main re-export
destinations from Dubai.