Tag Archives: business
Obama says world cannot stand by on Syria
Obama says world cannot stand by on Syria (AFP) / 31 August 2013 President Barack Obama insisted that war weariness cannot excuse world powers from their duty to punish Syria after the gassing to death of hundreds of women and children. US President Barack Obama speaks during a meeting with Baltic leaders in the Cabinet Room of the White House in Washington on August 30, 2013. While he said he had made no “final decision” on taking military action against Bashar Al Assad’s regime, Obama gave his clearest indication yet that a “narrow, limited” attack is imminent. His remarks came after the United States released an intelligence report that concluded the regime had launched a chemical onslaught in the suburbs of Damascus last week, killing 1,429 people, including at least 426 children. “This kind of attack is a challenge to the world,” Obama told reporters at the White House. “We cannot accept a world where women and children and innocent civilians are gassed on a terrible scale,” he said, calling the attack a threat to US “national security interests.” “The world has an obligation to make sure we maintain the norm against the use of chemical weapons,” he said, slamming the failure of the UN Security Council to agree on action. Obama said he was looking at a “wide range of options” but had ruled out “boots on the ground” or a “long-term campaign.” “We are looking at the possibility of a limited, narrow act,” he said. France gave its backing to the US plans, saying a “strong message” should be sent to the Assad regime, but British lawmakers had already voted against any involvement in military action and other close US allies said they would not sign up. Russia, Syria’s most powerful ally, has questioned US intelligence about the August 21 gas attacks and has warned against any military strikes without UN backing. In Damascus, UN experts completed their investigation into the attacks east of the capital and said they would “expedite” a report on whether chemical weapons had been used there. The team is due to leave the war-battered country on Saturday and report back immediately to UN chief Ban Ki-moon, who has appealed to the West to allow time for their findings to be assessed. US Secretary of State John Kerry cited “multiple streams of intelligence” indicating that the Syrian government had carried out the chemical attack and that Assad himself is the “ultimate decision maker.” But the United States, faced with an impasse at the Security Council and the British parliament’s shock vote on Thursday, has been forced to look elsewhere for international partners. While Germany and Canada ruled out joining any military strikes, French President Francois Hollande said the British decision would not affect his government’s stance. Hollande said he and Obama “agreed that the international community cannot tolerate the use of chemical weapons, that it should hold the Syrian regime accountable for it and send a strong message.” Turkey, Syria’s neighbour, went further still, demanding not just surgical strikes to send a message about chemical weapons but a sustained campaign to topple the regime. “A limited operation cannot be satisfactory for us,” Recep Tayyip Erdogan was quoted as saying by the NTV news channel. Gruesome pictures of some of the reported victims of the attacks, including children, have shocked the world and piled on the pressure for a response that could draw a reluctant West into the vicious Syrian civil war. But Russia and even some US allies, have warned against any intervention, saying it risks sparking a wider conflict. Divisions over Syria have further chilled the frosty relations between Washington and Moscow ahead of the G20 summit next week in Saint Petersburg, where pointedly there will be no face-to-face talks between Obama and Russian President Vladimir Putin. Syria has denied using chemical weapons, and the foreign ministry said on Friday that the US intelligence report was “nothing but tired legends that the terrorists have been circulating for more than a week, with their share of lies and entirely fabricated stories.” The military build up was meanwhile continuing, with US warships armed with scores of cruise missiles converging on the eastern Mediterranean. In Damascus the mood was heavy with fear and security forces were making preparations for possible air bombardments, pulling soldiers back from potential targets. More than 100,000 people have died since the conflict erupted in March 2011 and two million have become refugees, half of them children, according to the United Nations. Continue reading
GCC may face gas shortage by 2015 on strong demand
GCC may face gas shortage by 2015 on strong demand Staff Report / 31 August 2013 Gas shortage in the GCC will become more pronounced by 2015 as demand stays strong and supply struggles to keep pace, according to a recent report released by global consultancy firm Booz & Company, The second Power + Water Leader’s Forum will be held on September 23. — Supplied photo The report, entitled “Gas shortage in the GCC — how to bridge the gap”, suggests that increasing power consumption, depleting oil fields, gas exploration and long term gas export commitments have limited the local supply of gas in the region. The report further adds that GCC countries can address the supply demand imbalance by raising local gas prices gradually, improving energy efficiency and investing in alternative methods to overcome the shortage. In an effort to bring the gas sector back on track, Robin Mills, head of consulting at Manaar Energy, will outline recent developments in the GCC gas and power sector and discuss the regional gas supply outlook and its impact on prices at the second Power + Water Leader’s Forum. Taking place on September 23 at the Abu Dhabi National Exhibition Centre, the dedicated conference runs alongside the Power + Water Middle East exhibition, which takes place from September 23 to 25, and will provide an ideal platform for experts to discuss sustainable best practices and innovative solutions across two of the region’s bourgeoning sectors. “The GCC’s gas shortage can be resolved,” said Mills. “But timing is crucial and waiting for solutions to materialise might mean that GCC states will have to burn more valuable liquid fuels to meet demand.” “Governments need a mix of short- and long-term measures to address the gas shortage. They need to invest in new developments to increase production, increase local gas prices steadily to encourage efficiency, and expand the use of alternative sources in the energy mix. Gas-sector investment is expanding rapidly across the GCC. Some of the most interesting projects include the Khazzan tight gas project in Oman, the Bab and Shah sour gas projects in Abu Dhabi and the Emirates LNG import terminal in Fujairah.” Anita Mathews, director of Informa Energy Group, organisers of Power + Water Middle East, said that an alternative energy source now making strides in the region is nuclear. According to research reports, UAE has set an ambitious target of generating one-quarter of its power from nuclear sources over the next 15 to 20 years. To reach this target, Abu Dhabi plans to construct at least six nuclear plants at a cost of more than $5 billion each. Held in strategic partnership with the Abu Dhabi Water and Electricity Authority, Power + Water Middle East is supported by the Society of Engineers — UAE and Confederation of Indian Industry, which will be organising a government supported national pavilion at the event. business@khaleejtimes.com Continue reading
Investing In Aussie Agriculture
28 AUG 2013 Matt Woodington It may have been a pretty dull spectacle in general but for those in the business of agriculture, the first election debate between Kevin Rudd and Tony Abbott was exciting for the mere mention of their industry. For Australian agribusinesses, Asia’s rising middle classes and their growing appetite for better, or simply different, foods is a tantalising opportunity but investment in the sector is needed. Indonesia is currently the biggest importer of Australian agricultural products, with Japan, South Korea and parts of the Middle East not far behind, but demand is on the increase throughout Asia, as more wealth leads to a taste for the kind of grains and proteins Australia produces in droves. Meanwhile, as the mining boom subsides, plenty of questions linger around how the hole it leaves behind in the Australian economy will be filled. Just like Australia can’t feed Asia by itself, agriculture won’t replace mining but it could certainly play its part. “It’s coming back into focus, I think the fact that it even gets a mention in the first debate between the leader of the opposition and the prime minister, shows the rejuvenation and increasing interest in agriculture and agribusinesses generally,” says Tim Burrow, a director at the Agribusiness Association of Australia. Australia’s export pedigree Although it’s a relatively small food producer on a global scale, Australia punches above its weight as an exporter, because it only uses roughly a third of its produce. “We export a lot of protein, whether it be animal protein in the form of beef or vegetable protein in the form of good quality wheat,” says Burrow. “There will be particular types of grain, meat or sugar that Asian people wish to have, just like we import quite a lot of food because it’s what we want and other countries or farmers are better at producing it.” Chinese demand for wheat and dairy products is growing fastest, as its middle class expands and mistrust of local food sources remains an issue. According to CBA analysts, China has contributed 33% to the growth of global fresh milk consumption since 2010 and 80% to whole milk powder growth, often used for infant formula. However, Chinese dairy demand still lags that of comparable developed-Asian countries. “For example, Chinese per capita cheese consumption grows as incomes grow. If China’s rate of per capita dairy consumption matched the developed-Asia average, Chinese cheese consumption would surge 8.4 times to 3 million tonnes, equivalent to a 16% uplift in global demand,” according to a CBA analyst note. “Despite Chinese investment in dairy genetics and infrastructure, recent local feed shortages – evidenced by swelling imports for corn, wheat and soybeans – supports CBA Commodities’ view that future growth in Chinese dairy consumption will be largely satisfied by imports. “The New Zealand and Australian dairy sectors have an opportunity to satisfy Chinese demand.” Agricultural consolidation New Zealand has stepped ahead of Australia with its free trade agreement with China, but CBA believes demand will continue to outstrip supply. New Zealand is the lowest cost dairy producer in the world, with Victoria in second place. Costs are much higher even in places like North America where farmers rely more on grain fed cattle yards, rather than good old fashioned grass. The world’s biggest dairy exporter, Fonterra of New Zealand, was recently forced to assure China and other importers over the safety of its milk following a botulism scare after bacteria was found in whey powder used in its infant formula. One of Australia’s biggest infant formula producers is Bega Cheese, which derives around half its earnings from exports. Bega, whose earnings increased 13% in the 2013 financial year, also owns around 18% of Warrnambool Cheese and Butter Factory, in which Murray Goulburn also has a 14.5% stake. Reports suggest the two shareholders could be positioning themselves for a takeover approach and while another domestic tie-up could stem from Ruralco’s interest in Elders, what’s causing more of a stir at the moment is the continuing trend of overseas buyers picking off Australia’s biggest agribusinesses. ABB Grain was bought by Canada’s Viterra in 2009, which is now part of Glencore, while AWB was sold to another Canadian company Agrium a year later. The major deal currently on the table is a $3.4bn offer for GrainCorp from US company Archer Daniels Midlands, which would see another of Australia’s biggest grain companies fall into foreign hands. The proposed deal, which is due to be resolved by November, has caused controversy and frustration among those that fear Australia is losing control of too much of its agricultural real estate. “What we haven’t really seen in the agricultural sector unfortunately is a merger of two big Australian companies to become a global player,” said Burrow. “We simply don’t have enough investors in Australia to grow the agricultural sector fast enough to meet the opportunity demand out there. So we need international investors, whether it comes from the UK, US, China, the Middle East or wherever it might be. “At a corporate level they are very open to international investment, at an individual personal level, we all get a bit concerned about who’s going to own our own food chain.” Understanding the investment challenges One of the big challenges for individual investors is getting to grips with the short-term volatility of agribusiness, which is considered a highly cyclical sector due to its pronounced ups and downs. Weather plays an important part and not just the weather in Australia either. Dairy farmers were hit hard by the periods of drought between 2001 and 2009, particularly in Northern Victoria. The struggles of Australian farmers may have helped their northern hemisphere counterparts, however, as demand for their goods would have gone up due to the fall in global supply. Likewise, if conditions for growing wheat are perfect everywhere in the world at any given time, then the lavish supply would cause prices and therefore the earnings of producers to fall. With those variations at play, keeping costs to a minimum is a priority for agribusinesses, which is why some have moved to mechanical harvesting, used for grapes for example, and more dairy farmers are employing robots in the milking shed. Agribusinesses will have been relieved to see the value of the Australian dollar fall, which should have a broadly positive impact on the industry. A lower dollar makes Australian goods cheaper for overseas buyers and gives the companies a chance to increase margins. Tasmanian Salmon farmer Tassal is one company to have put its export business on hold until the dollar reached a more palatable level, although it has done rather well from its domestic operations. Burrow believes that agribusinesses are best suited to long term investors, while the possibility of more takeover activity in the sector could be an attraction. The offer for GrainCorp represented a 49% mark up on its closing share price the previous day. The broader industry faces plenty of other challenges; the need for more investment in infrastructure to access remote regions and facilitate more export traffic, and fixing the shortage of qualified agricultural people coming through Australia’s universities are among them. “Agriculture needs focus, it needs a political statement on it because it requires the space to develop rapidly to meet the demands,” said Burrow. “I just think it’s good that the political platform at the moment is recognising the importance of agriculture.” Continue reading
