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A new focus area

An efficient agriculture sector is not a matter of choice but a necessity for the sultanate
Mayank Singh

"We do not speak about the expansion of agriculture but the preservation of what we have and what is beneficial to us plus the preservation of water resources and the rati-onal use of the same." – His Majesty Sultan Qaboos bin Said, addressing dignitaries at the wilayats of Al Dakhliya and Al Wusta region on February 6, 2007

Tawoos Agricultural Systems in Barka produ-ces 7,000 tonnes of carrots every year – making the farm the single largest producer of carrots in the Middle East. It is also the largest exporter of French beans to Japan, despite stiff competition from countries like Mexico and New Zealand. The farm has developed special varieties of coloured capsicum, lettuce and cherry tomatoes to cater to the five star hotels and tourism industry in Dubai. The company's Desert Magic brand is widely recognised and respec-ted across the region.

Gulf Mushroom Products Company, Barka, produced 1,478 tonnes of button mushrooms (Champignon de Paris in French) in 2006. Close to 80 per cent of these mushrooms are exported to the UAE. Kuwait, Bahrain, Qatar and the Pakistan markets account for another ten per cent of its exports. The rest is sold in the local market. The company's revenue in 2006 stood at RO2.22mn, its net profit being RO264,000. The company's earnings before interest, tax, depreciation and amortisation (EBITDA) jumped by a staggering 69 per cent from 2005 to RO750,000.

The examples illustrate that corporate farming, done with the right resources, expertise and know how is both profitable and viable in the sultanate. Says Mukhtar Hasan, managing director, Gulf Mushroom, "There is money to be made in farming as long as it is professionally managed. Two factors of importance are the yield per hectare and the ability to market one's produce."

That is the good news. Now comes the bad news. Such examples of success are few and far between. Over all, the agriculture sector in Oman is less than efficient and is plagued by a number of problems.

The macro economics
The agriculture sector's contribution to the sultanate’s GDP is a mere 2.6 per cent when
compared to the industry’s 38.8 per cent and services’ 58.7 per cent. The current production covers just one-third of Oman's food needs, making the country heavily dependent on food imports. With the population growing at 3.28 per cent every year, this equation can only grow worse in the coming years if agriculture production remains stagnant.

Realising the gravity of the situation, the government is chalking out a multi-pronged plan to make the sector more competitive. The concerns of farmers and the agriculture sector were the topic of discussion at an agriculture symposium held on the directives of His Majesty Sultan Qaboos bin Said at the royal camp at Seih al Rasiyat in Sumail in February this year.

The symposium came up with a list of suggestions to improve the sector's performance. These included – rationalising the use of water and modernising the irrigation system, reducing unfair grazing and combating desertification, introducing a set of incentives for merger of small farms, setting up of agro-vocational training centres, putting in place a marketing mechanism for farm produce, encouraging banks to increase financing of agriculture and adoption of modern techniques and research. The symposium may prove to be a milestone in the development of agriculture in the sultanate as it has trained the spotlight firmly on the beleaguered sector.

Hitting where it hurts
Now, a look at the problems besieging the agriculture sector in Oman. Given the topography of the country, the biggest problem is limited availability of land for agriculture.

Out of a land area of 212,460sq km, only 0.12 per cent is arable. This restricts the options to a few select areas. The coastal area of the Batinah plains, located between the Hajar mountains and the sea remains the food bowl of Oman, with close to 50 per cent of the cultivable area being located there. In the south, the coastal plains surrounding Salalah is another arable area, which has a suitable agro climatology.

Over the years, farmers in the Batinah region have been pumping fresh water extensively. The pace of water extraction has not been in line with water replenishment, leading to a substantial lowering of the water table in the area. The unabated extraction of water has led to the seepage of seawater into the area's water table. The ensuing salinity of water has damaged agriculture badly in the region with scores of farmers having had to abandon their farms completely.

The lack of sufficient rains in the mountains has meant that the salt content in the soil is not flushed out. The use of fertilisers has exacerbated the problem. "The more fragile the environment, the more easily it is damaged. So the challenge is to do things in a sustainable way rather than at a rapid pace," says Anton McLachlan, dean, College of Agricultural and Marine Sciences (CAMS), Sultan Qaboos University (SQU).

If this was not bad enough, the outbreak of diseases has been creating havoc for a number of agricultural products. The mango production of the sultanate has been reduced by less than 50 per cent of what it was five years ago because of a fungus called ceratocystis fimbriata. The disease, which started in Barka, has spread rapidly beyond Sohar in the west, Quriyat in the east and Nizwa in the interiors. The witch's broom disease has spelt a similar or worse effect on lime and red palm weevil has afflicted dates. Banana crops are constantly in the line of fire from global diseases.

The predominance of small farms in the sultanate has meant that most of them do not have the financial muscle to combat these problems or leverage economies of scale to improve their operations. Says Mike Deadman, associate professor, CAMS, SQU, "There are a number of hobby farms which are owned by people working elsewhere." Small farms translate into low yields and marketing problems.

A study by CAMS showed that the overall loss across the supply chain from the farm to retail shelves was as high as 20 per cent. This resulted from the use of faulty harvesting techniques, bad product handling, lack of proper packaging and storage facilities. The farmer loses out in two ways. One, the buyer is not ready to purchase the entire quantity of the produce as it is either damaged or spoiled. Two, their price realisations get affected as the quality of produce is seen as mediocre.

Coming to grips
While the magnitude of the problems can hardly be overstated, there are concerted efforts being taken by the government and farmers to tackle some of these. The government has banned the growing of hay grass (fodder for animals) on the Batinah coast as this grass absorbs a lot of water. One hectare of land produces 25 tonnes of hay grass over a year. Selling this at the market price of RO100 per tonne gives a farmer a return of RO2,500. Now, here is the catch. It takes 27,000 cubic metres of water to irrigate one hectare of hay grass. If the same land is used to grow green beans or tomatoes, the returns are anywhere between RO6,000 and RO9,000. The water needed to grow this produce? Just 5,000 cubic metres. Shifting from water intensive crops to those that need less water for survival can help in maintaining an area's water table. So the government's efforts to shift hay grass cultivation is a welcome move.

The government is also trying to control the number of wells being dug on the Batinah coast. The proliferation of wells together with over-extraction of water from aquifers have been major causes for salinity in the region.

Traditionally, farms in Oman have used the falaj system – use of canals to channelise water into fields – for irrigation. This system of floo-ding fields leads to wastage of water. A better option is to use drip irrigation, wherein water is guided to individual plants in a controlled manner by using rubber or plastic pipes. "There is need to use economic methods for encouraging the rational use of water," says Andrew Palfreman, professor, CAMS, SQU. One option being debated is to utilise pricing as an instrument to check the use of water. This can be done in two ways – by increasing the price of electricity charges used for pumping water or by increasing the cost of water used for irrigation.

Worms and viruses
Controlling plant diseases remains the other big challenge. The government has been encouraging the installation of greenhouses for horticulture products. Greenhouses give cultivators more control over the environment, helping to ward off diseases along with the advantage of growing plants even during the summer months. According to rough estimates, the number of greenhouses in the sultanate has gone up by 50 per cent in the last two years. A similar option is the use of shade houses, wherein a net is used to provide shade for plants. This is covered with an insect net kee-ping out carriers of plant diseases.

Creating physical barriers can help in cont-rolling the incidence of plant diseases. Says Clinton Albano, general manager, Tawoos Agricultural Systems, "We avoid planting crops like cucumbers and certain varieties of tomatoes which breed white flies (carriers of plant viruses). Even if we plant them, we try and keep them at a safe distance from melons which are susceptible." Worldwide, virus based diseases are on the rise requiring constant vigilance.

A possible option being explored is the use of hydrophonics or soiless cultivation for greenhouse plants. Water is directed in channels filled with gravel or sand. This keeps out a number of soil based pests and diseases.

Experts also want Oman to improve its quarantine rules – preventing plant diseases from entering the country. The disease afflic-ting mangoes in Oman is reportedly from Brazil. Countries like Australia have strict quarantine systems in place, not allowing people to bring in any kind of plants into the country. Says Deadman, "Only certified plants and materials should be allowed to be imported and there should be a high level of inspection and interception to keep diseases out of bounds." Researchers are also working on developing varieties which are more resilient to viruses.

Analysts also propose working out a co-operative structure between small farms to improve efficiency. A model which can be replicated is a system followed by farmers and artisanal fishermen in Europe who cooperate in areas of common interests like planning publicity campaigns, pooling resources to improve technological competence and better environmental management.

The other option is to explore possibilities of contract farming in partnership with bigger farms. The farmer either gives out his land on contract to bigger farms or cultivates his farm for them. The commercial farm in return gives technical support in areas like seeding and harvesting. The profits are finally shared between the two parties. The system is already in place in a few pockets but it needs to be popularised.

Application of post harvest technology can help in reducing losses and maintaining product quality. Post harvest operations include storage, harvesting, marketing, transport, grading and packaging. "If we invest in looking after what we produce we will put less pressure on natural resources and so post harvest technology is an important part of sustainable management of resources," says Linus Opara, director, agricultural experiment station, SQU. Small measures can work wonders in this area. For example, harvesting crops in the morning, when the temperature is lower, instead of the afternoon can improve the shelf life of products. Putting freshly harvested crops in shade or washing them also goes a long way in improving their life span.

Using boxes that allow airflow is critical in maintaining the quality of a produce, so pac-kaging boxes need to be more scientifically designed. While transporting a product, it is essential that not too many boxes are piled upon each other as it can damage the quality of products.

The Fruits and Vegetable Market, Ma'abela, has a good storage facility, which can be used by farmers to store their products. "The strength of the chain is based on the weakest link, so the need is to take the available know-how closer to the farmer," says Opara.

Agriculture as employer
The government is also looking at encouraging agriculture as an important source of employment. The sector plays an important role in providing livelihood to scores of people in the rural areas along with fisheries and poultry farming. According to rough estimates, there are over 100,000 people who are engaged in agriculture and fisheries in Oman. Though this may be impressive, more needs to be done to make it an attractive employment option for young people. "If the relative returns from agriculture are comparable to the returns from employment in cities, then young people will stay back in their villages," says Palfreman. A suggestion being made is to allow piece labour (paying the labour force as per their output) instead of a fixed wage to encourage emp loyment of Omani women and the youth on the farms.

Worldwide, food self-sufficiency and agricultural efficiency remains a contentious issue. For example, the World Trade Organisation's (WTO) trade talks have repeatedly broken down on the issue of reducing farm subsidies.

Unlike industry, the problems besetting the agriculture sector in Oman require much more resources and a longer time span to deal with. The good part is that both the government and the private sector are conscious about the need for improvement.