Marketing Plan

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National Fodder Production Marketing
Green Fodder - Local Demand Supply By-
Dr. Yasser Ziadat Vice President - Sales
Marketing
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Company Background

• 2001 NFPM establishment.
• 2003 Facility commissioned.
• 2006 NFPM acquired a new storage facilities in
  Jabel Ali Coast Flour Mill.
• 2007 NFPM been certified as ISO HACCP
  company.
• 2008 NFPM expansion project New Feed Mill- in
  Jable Ali area.

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Vision

• To be the leading Feed Mill in MENA area
  through Market Dominance and High Performance
  within ten years of production.

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Mission

• To provide the customer the highest quality. We
  exist to attract maintain customers. Our
  products and services will exceed customer
  expectations secure satisfactions.

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March, 25 2009
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UAE Key Macro-Economic Drivers

• Populations 5.2 Million (2008)-Ministry of
  Planning estimated the UAE population to be 5.4
  million in 2009 6.1 million in 2012 at an
  average growth rate 5 per annum.
• Population growth rate 5
• Ethnic groups Emirati 19, other Arab and
  Iranian 23, South Asian 50, other expatriates
  (includes Westerners and East Asians) 8 (1982)
• GDP (purchasing power parity) 186.8 billion
• GDP - real growth rate 17 (2007)
• GDP - per capita (PPP) 40,400
• Inflation rate (consumer prices) 7 (2007)

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Market Concerns

• Global instability in raw materials demand
  supply status due to
• Global economical crisis.
• Drought Global Warming.
• Increase demand on locally produced dairy
  poultry products.
• Shortage in supply of locally produced raw
  materials for animal feed.

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Market Concerns..cont.

• External influences impacting on the development
  of the market for dairy products (direct effects
  on Demand Supply of dairy products
• Exchange rate movements.
• European union export refunds
• World market prices for dairy commodities.
• World Milk Supply.
• Fierce competition form GCC dairy producers.
• Increase dairy products consumption per capita-

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UAE Dairy Market

• About 20 Modern Dairy farms producing about
• - 70 of total yearly consumption of liquid
  milk.
• Average Yearly Feed consumption 150,000.00
  Mt/Y. (including Finished Feed Green Fodders).
• About 60,000 70,000 Mt of green fodder are
  required yearly for dairy feeding.
• Alfa Alfa is the major green fodder required
  for dairy feeding.
• About 200,000 Mt of Alfa-Alfa produced locally
  2 Millions Mt of green Rhodes grass (as per 2005
  statistics), other requirements of green fodder
  been imported
• All other grains raw materials required for
  feeding been imported processed locally.

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Key Issue

• Whether the current local Green Fodder production
  is able to full fill the yearly demanded?

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Sub Issues

• Low barriers for Imported raw materials
• Limited resources of high quality green fodders
• Dumping Strategy
• Globally Raw Materials prices, Fluctuations /
  Instability
• Inflation rate.

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OT Analysis

• A. Opportunities
• Production capacity of UAE feed Mills are about
  900,000 Mt/year while the current required of
  Dairy feed is about 150,000 Mt.
• About Twenty five percent 25 of yearly UAE
  dairy products consumption are imported.
• Milk consumption in UAE has grown by an average
  annual rate of 10.3 since 2003 to reach over
  147.3 million liters in 2007.
• Increased consumers awareness perception
  toward healthy safety food.
• Increased FDI (Foreign Direct Investment) in
  UAE.
• Proper utilization of locally produced green
  fodder crops with cooperation with local
  Authorities (Agric. crops 2005).
• NFPM had dedicated a special production lines to
  produce value added dairy feed ( Soy Pass ,
  Al-Shamel Feed Fibrous feed).

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OT Analysis ..cont.

• B. Threats
• Low barriers for new competitors entry.
• World market prices for dairy commodities.
• World milk supply.
• Exchange rate movements.
• - Dirham pigged to US which has been performing
  poorly.
• - The Euro strengthened by 17 against the
  Dirham during the period Jan 2004 to Jan 2008.
• Competitors non professional reactions.
• Quality Control over supplied / imported green
  fodders.
• High input cost for raw materials, particularly
  feed and veterinary supplies, which forced some
  small producers to close their operations during
  2003-2004.
• Minimum water resources used for green fodder
  production locally.

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Conclusion

• Despite the fact that the UAE Government had
  several trials for fulfilling the current demand
  of green fodder for the local market but cost of
  cultivation for the required quantities is equal
  or more than the cost of importing the required
  beside that cultivation of green fodder would
  affect negatively on local water resources
  therefore looking for local alternatives for
  partial replacement would definitely had a
  positive impact on cost saving.

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Collection/Chipping/Drying/Grinding/Mixing/Pelleti
ng and Packing
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  (2010/2011)

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Final Recommendations

• Immediate cooperation between Agricultural
  Environmental Authorities , Feed Mills Dairy
  producers to utilize the current available Green
  Fodder resources IS A MUST
• Local Producers protection Anti-dumping
  regulation can be strategically exploited by the
  domestic firm to reduce the degree of competition
  in the domestic market. GATT (1991, p.110).
• Cooperation between Agric. Authorities Dairy
  Producers experts in Alfa-Alfa tendering to be
  utilized for high quality Alfa Alfa importing.
• NFPM to continue its palm utilization experiments
  with cooperation with local research centers
  Dairy Farms under the governmental umbrella to
  secure the investments in such project.

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Recommendations ..cont.

• Training programs to promote learning and healthy
  awareness within Dairy products consumers in
  cooperation with governmental authorities
  elaborating the advantages of consuming the fresh
  and locally produced Dairy products.
• Developing new market products addressing new
  market segments.
• Close cooperation between Feed millers Dairy
  producers for Resources development purposes.
• Presence of an accurate updated agricultural
  data through an official governmental statistical
  center will be highly appreciated to support all
  agric. Sector in UAE.

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Thank You For Listening Q A
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For More information contact Dr. Yasser Ziadat
Vice President - Sales and Marketing National
Fodder Production and Marketing Office 971
2 550 1 222 Fax [phone] P.O
Box 12900 Abu Dhabi - UAE Email
yziadat_at_nfpm.ae