Wednesday, December 28, 2011

Saudi Arabian Company Leases Land In Ethiopia For Rice Production For Export

Saudi Company Leases Ethiopian Land for Rice Export

The audio report tells of a complex situation in the African nation of Ethiopia.

The Ethiopian government has the task of looking out for the long run interests of its people and nation.

From the article my opinion is that the Ethiopian government should leverage the investments in water distribution infrastructure from the Saudi Arabian company to allow smaller farmers to tap into the "water utility" for their own use.

Since the Saudis seek to export their food crops and there is a need to increase Ethiopia's internal food production, the government should use land zoning as a means of allowing smaller farmers to have a share of the "fertile land" and direct future expansion of both the Saudi and domestic farm operations into less desirable lands that require land preparation to be made into farmland.

In addition I recently saw another news story about the technique of growing rice in "dry" conditions instead of the water drenched method that is shown in the picture above.  (I need to recall where I saw this and post it later.).   This new technique used a fraction of the water and depended upon inexpensive flexible pipes to channel water directly onto the rice stalk.   Since the Ethiopian government is planning for the future and has potential water scarcity they should drive for this new technique to be used.

As is the case in so many other nations, Ethiopia is charged with setting up the ground rules by which all of the players will operate upon.  Their proximity to the Middle East has them strategically located to serve the foreign demands of a fast growing region and leverage the commerce to build up their internal competences.

Ethiopia's Rapid Economic Growth

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