Bahrain's food consumption may rise 26pc
Manama, August 26, 2009
Bahrain's food consumption is likely to increase by 25.5 per cent in the next four years with total volumes of food trade reaching a record BD172 million ($456.5 million), according to a new report.
London-based Business Monitor International's (BMI) forecast also says Bahrain has replaced the UAE at the top of the regional Food and Drink Business Environment Ratings.
'Despite its small population, Bahrain provides investors with one of the Gulf region's most upbeat per capita food consumption growth outlook and an attractive investor-friendly regulatory environment,' it said.
'It is expected Bahrain's GDP will contract by 0.12 per cent this year, which is a creditable figure since we have also forecast the global output will decline by 2.3 per cent.
'While the global downturn has affected the near-term outlook of many multinational food companies, resilient and brand loyal consumers across the Gulf region have provided respite to companies like Fonterra and Kraft Food.'
BMI said that earlier this year, the New Zealand-based dairy giant Fonterra announced that it expected the Gulf region to be a key long-term growth market.
'The firm has reported double digit regional turnover growth in each of the last three years,' it said.
'Despite the downturn, it has correctly interpreted that rather than trade down to cheaper brands, most consumers have instead preferred to make savings by purchasing smaller sizes of Fonterra's value added brands, which has kept up volume sales.'
BMI said that with further investment pending, the firm was encouraged by its forecast on Bahrain.
US-based Kraft Food's based its regional operations out of Bahrain, with its business performing well this year, adds the report.
'With assets in the soft drinks industry through its popular Tang juice portfolio, Kraft is well placed to capitalise on our forecast that between this year and 2013, soft drinks value sale will increase by 20.6 per cent and reach BD35 million.'
Although Bahrain does not provide the 'premium' potential of the UAE, Kuwait or Qatar, or the volume potential of Saudi Arabia, BMI said its encouraging food consumption growth forecast should ensure it continues to attract the attention of major players.
Earlier, in June, it was announced investors from Thailand and the Philippines were being invited to set up food processing plants and related industries in Bahrain.
A business delegation came back after a trip to the two countries with assurances from investors that they were keen to build on existing business ties.
It was also reported they were particularly interested in investing in the agriculture sector of both countries as well as other food businesses, particularly the Philippines.
Reports had also stated the Thai government was closely engaged in trade talks with Bahrain on government-to-government deals, particularly for rice, saying Bahrain was being considered as a springboard to supply rice to the GCC.
Our sister newspaper Gulf Daily News reported last Monday Bahrain is to also buy 150,000 tonnes of chicken meat from Thailand every year for the next few years.
Most of the imported meat would be re-exported to other Middle Eastern countries.
A Thai company has signed a memorandum with Bahrain's Al Salam Bank on the possibility of joint investments in food and farm businesses.-TradeArabia News Service