Food and Drink Exports From Kuwait Are Set To Climb By 31.4% to 2010, Thanks To Gradual Improvements in the Agricultural Sector

Research and Markets (http://www.researchandmarkets.com/reports/c60832) has announced the addition of Kuwait Food & Drink Report Q4 2006 to their offering.

Agriculture continues to be a focus of Kuwaiti government, with the announcement this quarter that international specialised companies will be contracted to establish massive animal farms in the north of the country, in an effort to ensure sufficient supplies of livestock. These farms will specialise in processing meat and dairy products, with one condition being the hiring and training of Kuwaiti nationals so that skills and technical expertise can be passed on to local citizens, as discussed in this newly published Kuwait Food & Drink Report for Q406.

Kuwait’s hot, arid climate, lack of arable land and limited water supply severely inhibit domestic agricultural production, making it heavily dependent on imports. We are forecasting that Kuwait’s food and drink trade balance will continue to increase negatively to 2010. However, both exports and imports of food and drink are set to show similar levels of growth over the next five years. Exports are set to climb by 31.4% to 2010, thanks to gradual improvements in the agricultural sector.

The Kuwaiti government has attempted to increase the number of Kuwaitis working in the private sector by implementing a Kuwaitisation policy for private sector employment, including onerous quotas for employment of nationals in certain sectors. Yet a part of the difficulty with this strategy is that the country also suffers from low levels of primary and secondary education enrollment (around 54%), despite free and compulsory education for all Kuwaiti residents. This is reflected in a relatively high rate of illiteracy (around 10%) and a shortage of marketable skills among Kuwaiti nationals. Therefore, offering employment opportunities in the farming sector may be a good strategy for the government to pursue.

With crude prices set fair over the medium term, growth should remain solid in the Kuwaiti economy, which will allow the government to invest in such projects in an attempt to diversify the economy and rectify the growing food and drink deficit. We see real GDP growth remaining very robust, on the back of still-strong revenues (even with lower oil prices), which should feed through into strong government and consumer spending. Growth should come in at 5.5% this year, before dropping to 5.0% in 2007

American food companies continue to be of interest for Kuwaiti consumers, with Au Bon Pain the latest company to sign a franchise agreement to enter the Kuwaiti market, this time through Sultan Center Food Products. Western food companies are very popular in Kuwait, as consumers are sophisticated, with high levels of disposable income. Another factor which continues to feed the popularity of such chains is the number of expatriate workers in Iraq coming over the border into Kuwait for time off and holidays, which creates increased demand for food and drink products inside Kuwait, stimulating the retail market.

Content Outline:

Executive Summary

Chapter 1 — Business Environment

Chapter 2 — Retail

Chapter 3 — Food & Drink

Chapter 4 — Competitive Landscape

BMI Forecast Modelling

How we generate our industry forecasts

Retail Industry

Sources

Companies Mentioned:

– Union Of Consumer Co-operative Societies (UCCS)

– United Beverages Company

– Americana (Kuwait Food Company)

– Kuwait Dairy Corporation

For more information visit http://www.researchandmarkets.com/reports/c60832