**5. Date value chain strategy in the GCC countries**

### **5.1 Data sources and data collection**

*Agricultural Economics - Current Issues*

and Oman, as shown in **Figure 5**.

0.34 and 8.64% in 2005 to 1.13 and 12.70% in 2016.

expanding to new markets (Asia and Africa).

together have strong potential for dominating the international dates market if additional efforts (concentrating on their dates international markets) are made

In addition to the above, this share of the GCC countries has been increasing over the period from 2005 to 2016, from a value of 22.98% in 2005 to 28.26% in 2016. This change especially refers to the rapid increase of the shares of KSA, UAE,

In terms of progress, all GCC countries, including the smallest share countries present on the international market are progressing quite positively with increasing shares over the period 2005–2016. This is especially true for Kuwait and UAE. Oman and KSA, also have the same trend with market shares increasing respectively from

During this period (2005–2016), the gap between GCC and its competitors on the international market is progressively narrowing, mainly with North African countries (Tunisia and Algeria), Iran, Pakistan and Israel. This might be due to the important increase in the demand for dates at the international level through

Although date trading share of GCC is increasing in the global market, they are still facing an important competition from the countries outlined above (Tunisia, Algeria, Iran, Pakistan, and Israel). To deal with this increasing competition, regional cooperation and partnerships among these countries should be reinforced, given that their challenges, constraints and problems on facing the global date market are similar, and interventions to address and resolve these complex and interrelated

*Market share of GCC countries on the international date market: (a) Bahrain, Kuwait and Qatar; (b) Oman,* 

*Saudi Arabia, and Emirates. Source: Own elaboration from FAOSTAT (2018).*

mainly in the important as well as growing date importing countries.

**18**

**Figure 5.**

The data for this study have been collected through semi-structured questionnaires targeting the main actors in the date palm sector. Data were gathered for three countries: Saudi Arabia, Oman and Kuwait. **Table 2** illustrate the number of surveys conducted in each country mentioned above.

### **5.2 Methodological framework**

The method used in this analysis is an assessment of the data gathered from two different sources.

First, an exhaustive literature review from various types of documents, both published and unpublished, related to date palm value chain in the GCC countries. Documents includes scientific reports, books, journal articles, working papers, research reports, web-based publications (including national and international databases), workshop proceedings, national policy documents, programme frameworks, etc.

Second, a participatory and consultative approach comprising multi-stakeholder consultations and surveys implemented in three potential GCC countries: Saudi


#### **Table 2.**

*Nature and number of surveys conducted in each country.*


#### **Table 3.**

*Date palm supply value chain synthesis.*

Arabia, Oman, and Kuwait. The surveys targeted the following date palm stakeholders: growers, consumers, retailers, wholesale traders, processors, transporters, importers, decision makers, research and extension staff, and input providers. The method was based on a synthesis summarizing the key messages issuing from each one of the indicated actors. The framework consisted of the following two processes. The first ones focused on data collection from surveys through involving the main value chain stakeholders. The second one focused on the validation of the identified results with special attention to the key development strategies and interventions.

This process, which was developed and implemented by a large number of actors actively involved in the three selected countries date sector (**Table 3**), led to three development strategies: (i) Date palm supply chain development and management; (ii) market and marketing development, and (iii) agribusiness development.

#### **5.3 Challenges and constraints in the date palm value chain in the GCC countries**

The analysis of the data collected reveal several problems and constraints that might affect the future of the GCC date palm sector. Such problems include:


The assessment of the date palm supply value chain, on the basis of the data collected from the different actors, allowed us to identify the following indicators related to each GCC country (**Table 3**).

**21**

*5.4.2 Variety selection*

*Date Palm Value Chain Analysis and Marketing Opportunities for the Gulf Cooperation…*

According to **Table 3**, the date palm supply value chain assessment indicates a high level in local consumption of fresh dates although per capita consumption is declining in most of the GCC countries because of the new habits dominating the new youth generation. The industrial dates for domestic consumption remain low mainly in Oman, Bahrain and Kuwait given the consumers preferences for the GCC countries in general and these countries in particular is more towards fresh dates. With respect to trade, KAS and UAE are the leading date exporting countries both for industrial and fresh dates. Oman, Kuwait, and Bahrain are the lowest exporting

Findings reveal also that part of date production is used as feed, mainly in Oman, Kuwait and UAE. Up to 30% of production was served as feed to animals in UAE during 2013 [3]. In addition, most of the date by-products are produced in traditional manner and mainly limited to the production of date paste, Jam, and date syrup. The introduction of new potential uses of dates and date products is modest,

and consequently the utilization of by-products is low in all GCC countries.

**5.4 Date value chain development strategy in the GCC countries**

*5.4.1 Farming practices: farmer education and farming management practices*

Finally, the results of date palm supply chain assessment indicate a lack of an improved and advanced management and lack of knowledge of good agricultural practices applied to palm date farming systems in almost all GCC countries.

Improved production and the whole production farming system is an essential part of any successful agribusiness program for the date palm sector in the GCC countries. The main challenges facing the production of date palm mainly relate to the weakness of the productive capacity of small farmers due to the lack of good pollen and low productivity of cultivated varieties compared to other varieties. The lack and the reduction of the skilled labor for date palm practices affect tremendously the production and the quality of the dates. Therefore, a holistic extension system is more than needed, mainly for the non-commercial farms, to provide training, advices, monitoring, and know-how for the date farming system. Staff should be trained in processing techniques to improve efficiency and quality and to produce on a larger scale. In addition, staff needs to be capacitated in post-processing quality assurance and control, better marketing and accessibility to market and improving quality standards and quality extension certification. In addition, capacity building of extension institutions, including the staff of local extension departments is more than needed. Capacities of such staff need to be built to better (more effectively, larger coverage, more permanent support) support producers and promote good agricultural management, pest and disease management using participatory training approaches (learning by doing and action field schools). This program should provide affordable and simple small-scale tools for the key tasks in this farming system (pollination, irrigation, fertilization, harvest, and post-harvest techniques). Such program could start at small scale level and later extended at large scale.

In the GCC countries, farmers grow more than 600 varieties of dates. Some varieties, given their own special set of characteristics, such as size, shape, color, and skin texture, are well appreciated by the consumers (at the national and international markets). Even if it is considered as an advantage for the date palm growers, in general, this variability creates obstacles in the sector, particularly during the harvest and post-harvest activities. This leads to many problems in

*DOI: http://dx.doi.org/10.5772/intechopen.82450*

countries compared to their production (i.e., Oman).

#### *Date Palm Value Chain Analysis and Marketing Opportunities for the Gulf Cooperation… DOI: http://dx.doi.org/10.5772/intechopen.82450*

According to **Table 3**, the date palm supply value chain assessment indicates a high level in local consumption of fresh dates although per capita consumption is declining in most of the GCC countries because of the new habits dominating the new youth generation. The industrial dates for domestic consumption remain low mainly in Oman, Bahrain and Kuwait given the consumers preferences for the GCC countries in general and these countries in particular is more towards fresh dates. With respect to trade, KAS and UAE are the leading date exporting countries both for industrial and fresh dates. Oman, Kuwait, and Bahrain are the lowest exporting countries compared to their production (i.e., Oman).

Findings reveal also that part of date production is used as feed, mainly in Oman, Kuwait and UAE. Up to 30% of production was served as feed to animals in UAE during 2013 [3]. In addition, most of the date by-products are produced in traditional manner and mainly limited to the production of date paste, Jam, and date syrup. The introduction of new potential uses of dates and date products is modest, and consequently the utilization of by-products is low in all GCC countries.

Finally, the results of date palm supply chain assessment indicate a lack of an improved and advanced management and lack of knowledge of good agricultural practices applied to palm date farming systems in almost all GCC countries.

### **5.4 Date value chain development strategy in the GCC countries**

### *5.4.1 Farming practices: farmer education and farming management practices*

Improved production and the whole production farming system is an essential part of any successful agribusiness program for the date palm sector in the GCC countries. The main challenges facing the production of date palm mainly relate to the weakness of the productive capacity of small farmers due to the lack of good pollen and low productivity of cultivated varieties compared to other varieties.

The lack and the reduction of the skilled labor for date palm practices affect tremendously the production and the quality of the dates. Therefore, a holistic extension system is more than needed, mainly for the non-commercial farms, to provide training, advices, monitoring, and know-how for the date farming system. Staff should be trained in processing techniques to improve efficiency and quality and to produce on a larger scale. In addition, staff needs to be capacitated in post-processing quality assurance and control, better marketing and accessibility to market and improving quality standards and quality extension certification. In addition, capacity building of extension institutions, including the staff of local extension departments is more than needed. Capacities of such staff need to be built to better (more effectively, larger coverage, more permanent support) support producers and promote good agricultural management, pest and disease management using participatory training approaches (learning by doing and action field schools). This program should provide affordable and simple small-scale tools for the key tasks in this farming system (pollination, irrigation, fertilization, harvest, and post-harvest techniques). Such program could start at small scale level and later extended at large scale.

#### *5.4.2 Variety selection*

In the GCC countries, farmers grow more than 600 varieties of dates. Some varieties, given their own special set of characteristics, such as size, shape, color, and skin texture, are well appreciated by the consumers (at the national and international markets). Even if it is considered as an advantage for the date palm growers, in general, this variability creates obstacles in the sector, particularly during the harvest and post-harvest activities. This leads to many problems in

*Agricultural Economics - Current Issues*

*Source: Own evaluation from survey database (2017).*

*Date palm supply value chain synthesis.*

Arabia, Oman, and Kuwait. The surveys targeted the following date palm stakeholders: growers, consumers, retailers, wholesale traders, processors, transporters, importers, decision makers, research and extension staff, and input providers. The method was based on a synthesis summarizing the key messages issuing from each one of the indicated actors. The framework consisted of the following two processes. The first ones focused on data collection from surveys through involving the main value chain stakeholders. The second one focused on the validation of the identified results with special attention to the key development strategies and

**Items Assessment indicators** Fresh dates for local consumption High in all GCC countries Fresh dates for exports Almost high in KSA and UAE Industrial dates for exports Low in Oman, Kuwait, and Bahrain Industrial dates for domestic consumption Low in Oman, Kuwait, and Bahrain Animal feeding dates Important in Oman, Kuwait and UAE

Utilization of by-products Low in all countries Farm management Low in all countries

This process, which was developed and implemented by a large number of actors actively involved in the three selected countries date sector (**Table 3**), led to three development strategies: (i) Date palm supply chain development and management; (ii) market and marketing development, and (iii) agribusiness

**5.3 Challenges and constraints in the date palm value chain in the GCC countries**

The analysis of the data collected reveal several problems and constraints that

might affect the future of the GCC date palm sector. Such problems include:

• Harvesting, processing and marketing (high post-harvest losses)

• Shortage in national qualified and trained staff & labors.

• Insufficient research and development activities.

• Low quality varieties, low product quality and consequently low returns.

• Poor farm Management (Inefficient use of date products and by-products).

The assessment of the date palm supply value chain, on the basis of the data collected from the different actors, allowed us to identify the following indicators

• Pests and diseases and inadequate Integrated Pest Management (IPM) control.

**20**

interventions.

**Table 3.**

development.

• Lagging processing sector.

• Low quantity of exports.

related to each GCC country (**Table 3**).

processing and marketing (grading, sorting, quality, etc.) given the non-uniformity of such products. GCC producers are mainly recommended to focus on producing the high added values varieties to meet national and international market demands. In addition, date palm producers are advised to improve the date palm productivity through the cultivation of new higher yielding varieties.

GCC countries should produce the most important and commercial varieties. These as an example include: *Mejdoul* in KSA, *Fard* and *Khalas* in Oman, *Barhi*, *Sukkari*, in Kuwait. Nowadays, international markets are very demanding both for the industrial sectors and for the final users (consumers) such standards and norms. *Mejdoul* is at the top of the list, followed by *Khalas*, *Fard.* Since GCC countries have abundant production of these varieties, an effective effort should be made by all the actors to propagate them within the Gulf region. This effort should mainly focus on the producers as they are the ones who influence the future plantation. The decisions makers are also requested to play a major role in this strategy by providing support and enhancing the propagation of plantation of these varieties. Finally, these varieties, and other potential ones, can be also produced to satisfy the local market needs from these products. This could be enhanced through the facilitation of the establishment, in each country and even at the most regional level, of a national palm plant nursery, a pollen collection center, and a tissue culture laboratory in coordination with the Ministry of Agriculture and research institutions to develop better, shorter and productive varieties. In addition, this laboratory can also be building solid relationships with input/service providers to supply red palm weevil detection devices, to introduce automated pollination mechanisms, and industrial maturation equipment.

#### *5.4.3 Post-harvest handling improvements*

The biggest challenge for the date palm sector in the GCC countries is the large volume of dates that arrive at the same time on the market (which is around harvest time), resulting in low prices. Indeed, to have a good and decent market price, the date value chain should be strong. This is possible when the post-harvest handling capabilities: post-harvest handling of fruit is efficient. According to the assessment we made, in the majority of the GCC countries, the post-harvest handling is considered as the weakest node of the date palm value chain where greatest loss occurs.

Post-harvest handling of dates currently in some GCC countries (Oman) is generally very poor. The majority of small scale date farmers are absent and foreigner laborers are managing the farming system. These "new managers" are with minimal education, who must be taught proper post-harvest techniques from beginning to the end. Thus, farmer education to these laborers should be a long-term program requiring constant training, oversight, and compliance. Efforts on monitoring control by the owners, and funding for improving farming methods and equipment and building a processing plant to produce product meeting international standards will prove a major disappointment if owner's farmer's monitoring, control and investment in best practices is not seriously and continuously addressed.

This is will influence, some posteriori, the date industry that will not move up the value chain if the fruit is not properly handled from harvest to final processing, and consequently there is little that can be done in terms of processing if fruit arrives at the processing plant infested with insects and full of dirt and sand. Such fruit cannot be processed into an added value or commercial product to meet the minimum marketing requirements.

#### *5.4.4 Processing and value added for date products*

There is no doubt that value added products for date palm sector is the future of this industry in the GCC. Low quality dates are mostly absorbed by the local

**23**

*Date Palm Value Chain Analysis and Marketing Opportunities for the Gulf Cooperation…*

market at very low price for the consumers. There is also the use of the very low quality as feed for the livestock sector. The local markets already absorb all of the low-quality dates at a low price. Therefore, for the high date palm quality, a high quantity of waste is generated at various stages of date fruit value—chain/ marketing. This date solid waste could be valorized from different perspectives and for several uses (pharmaceutical industries, confectionaries, handcrafts and

These suggested value-added products (date palm by-products such as leaves and wood for furniture and handicrafts, sweet sap, date sugar, date palm-based confectionaries products, etc.) should be produced in modern, efficient processing facilities capable of making a wide variety of industrial grade and retail products demanded by the local and the international markets. This is possible if the facilities are installed close to the production areas, regrouping farmers around agricultural cooperatives, which offer opportunities that date palm small holders could not achieve individually, such as providing good quality of (as fruits and, consequently a strong bargaining power and resource share that leads to win-win

A systemic change that encompass the independence of external inputs, that promote better palm tree management and harvesting, improve storage, processing and packaging and work on creating higher value products for the local and international markets, is encouraged. This systemic change should be started by facilitating the linkages between decision makers (ministries) and research institutions, with producers and other key date palm chain actors, through promoting the use of applied scientific research methods to improve processing quality and develop new processing and storage techniques. There is also a need to build a trustable relationship with input/service providers to introduce new processing and packaging technologies and

Several constraints and challenges are facing the local marketing channels of the date palm fruits. Such challenges are decreasing demand for date fruits, weak post-harvesting transactions, lack of appropriate and attracting boxes, no appropriate existing storage system till the marketing of fruits, lack of by-products markets, use of unimproved technologies for fruit packaging, no linkage between all key processing date palm actors, lack of expertise and technical staff for date palm manufacturing industries, rural-urban migration, urbanization, no feasibility studies regarding the profitability of the manufacturing industries of date palm products, and reluctance of investors to invest in the date palm sector. To overcome these constraints and to improve the marketing at the local level, it is crucial to provide the pertinent, complete and in time marketing information to date palm producers; activate the role of the marketing cooperatives; and development of coordination committees, associations, cooperatives, public and private companies for producers, manufacturers, and exporters of dates to prevent duplication and waste resources. Another strategy could be by including date fruits by the Ministry of Health, Education in the hospital, schools, etc. Furthermore, initiating local consumer's campaign, which will be set up to promote a "buy-local" products, would enhance consumer trust and pertinence in/to local produce. Government institutions, private sector organizations, and the Chamber of Commerce and other stakeholders might be encouraged to launch targeted marketing campaigns linked to

*DOI: http://dx.doi.org/10.5772/intechopen.82450*

furniture, etc.).

situation.

techniques.

*5.4.5.1 National markets*

*5.4.5 Markets and marketing improvement*

new potential consumers/customers [3].

#### *Date Palm Value Chain Analysis and Marketing Opportunities for the Gulf Cooperation… DOI: http://dx.doi.org/10.5772/intechopen.82450*

market at very low price for the consumers. There is also the use of the very low quality as feed for the livestock sector. The local markets already absorb all of the low-quality dates at a low price. Therefore, for the high date palm quality, a high quantity of waste is generated at various stages of date fruit value—chain/ marketing. This date solid waste could be valorized from different perspectives and for several uses (pharmaceutical industries, confectionaries, handcrafts and furniture, etc.).

These suggested value-added products (date palm by-products such as leaves and wood for furniture and handicrafts, sweet sap, date sugar, date palm-based confectionaries products, etc.) should be produced in modern, efficient processing facilities capable of making a wide variety of industrial grade and retail products demanded by the local and the international markets. This is possible if the facilities are installed close to the production areas, regrouping farmers around agricultural cooperatives, which offer opportunities that date palm small holders could not achieve individually, such as providing good quality of (as fruits and, consequently a strong bargaining power and resource share that leads to win-win situation.

A systemic change that encompass the independence of external inputs, that promote better palm tree management and harvesting, improve storage, processing and packaging and work on creating higher value products for the local and international markets, is encouraged. This systemic change should be started by facilitating the linkages between decision makers (ministries) and research institutions, with producers and other key date palm chain actors, through promoting the use of applied scientific research methods to improve processing quality and develop new processing and storage techniques. There is also a need to build a trustable relationship with input/service providers to introduce new processing and packaging technologies and techniques.

### *5.4.5 Markets and marketing improvement*

#### *5.4.5.1 National markets*

*Agricultural Economics - Current Issues*

*5.4.3 Post-harvest handling improvements*

minimum marketing requirements.

*5.4.4 Processing and value added for date products*

through the cultivation of new higher yielding varieties.

processing and marketing (grading, sorting, quality, etc.) given the non-uniformity of such products. GCC producers are mainly recommended to focus on producing the high added values varieties to meet national and international market demands. In addition, date palm producers are advised to improve the date palm productivity

GCC countries should produce the most important and commercial varieties. These as an example include: *Mejdoul* in KSA, *Fard* and *Khalas* in Oman, *Barhi*, *Sukkari*, in Kuwait. Nowadays, international markets are very demanding both for the industrial sectors and for the final users (consumers) such standards and norms. *Mejdoul* is at the top of the list, followed by *Khalas*, *Fard.* Since GCC countries have abundant production of these varieties, an effective effort should be made by all the actors to propagate them within the Gulf region. This effort should mainly focus on the producers as they are the ones who influence the future plantation. The decisions makers are also requested to play a major role in this strategy by providing support and enhancing the propagation of plantation of these varieties. Finally, these varieties, and other potential ones, can be also produced to satisfy the local market needs from these products. This could be enhanced through the facilitation of the establishment, in each country and even at the most regional level, of a national palm plant nursery, a pollen collection center, and a tissue culture laboratory in coordination with the Ministry of Agriculture and research institutions to develop better, shorter and productive varieties. In addition, this laboratory can also be building solid relationships with input/service providers to supply red palm weevil detection devices, to introduce automated pollination mechanisms, and industrial maturation equipment.

The biggest challenge for the date palm sector in the GCC countries is the large volume of dates that arrive at the same time on the market (which is around harvest time), resulting in low prices. Indeed, to have a good and decent market price, the date value chain should be strong. This is possible when the post-harvest handling capabilities: post-harvest handling of fruit is efficient. According to the assessment we made, in the majority of the GCC countries, the post-harvest handling is considered as the weakest node of the date palm value chain where greatest loss occurs. Post-harvest handling of dates currently in some GCC countries (Oman) is generally very poor. The majority of small scale date farmers are absent and foreigner laborers are managing the farming system. These "new managers" are with minimal education, who must be taught proper post-harvest techniques from beginning to the end. Thus, farmer education to these laborers should be a long-term program requiring constant training, oversight, and compliance. Efforts on monitoring control by the owners, and funding for improving farming methods and equipment and building a processing plant to produce product meeting international standards will prove a major disappointment if owner's farmer's monitoring, control and investment in best practices is not seriously and continuously addressed.

This is will influence, some posteriori, the date industry that will not move up the value chain if the fruit is not properly handled from harvest to final processing, and consequently there is little that can be done in terms of processing if fruit arrives at the processing plant infested with insects and full of dirt and sand. Such fruit cannot be processed into an added value or commercial product to meet the

There is no doubt that value added products for date palm sector is the future of this industry in the GCC. Low quality dates are mostly absorbed by the local

**22**

Several constraints and challenges are facing the local marketing channels of the date palm fruits. Such challenges are decreasing demand for date fruits, weak post-harvesting transactions, lack of appropriate and attracting boxes, no appropriate existing storage system till the marketing of fruits, lack of by-products markets, use of unimproved technologies for fruit packaging, no linkage between all key processing date palm actors, lack of expertise and technical staff for date palm manufacturing industries, rural-urban migration, urbanization, no feasibility studies regarding the profitability of the manufacturing industries of date palm products, and reluctance of investors to invest in the date palm sector. To overcome these constraints and to improve the marketing at the local level, it is crucial to provide the pertinent, complete and in time marketing information to date palm producers; activate the role of the marketing cooperatives; and development of coordination committees, associations, cooperatives, public and private companies for producers, manufacturers, and exporters of dates to prevent duplication and waste resources. Another strategy could be by including date fruits by the Ministry of Health, Education in the hospital, schools, etc. Furthermore, initiating local consumer's campaign, which will be set up to promote a "buy-local" products, would enhance consumer trust and pertinence in/to local produce. Government institutions, private sector organizations, and the Chamber of Commerce and other stakeholders might be encouraged to launch targeted marketing campaigns linked to new potential consumers/customers [3].
