The largest dairy company in Saudi Arabia is now planning to plant forages in the drought-stricken areas of southwest America. This move is due to the inability of the company to grow alfalfa in its own country.
Last January, Almarai Co. has bought a land in the California Palo Verde Valley. This is an area that enjoys the waters of the Colorado River. The company also purchased a land in Vicksburg Arizona and is now becoming a powerful economic force in the region with a few restrictions on well pumping than other states as per Washington Top News.
According to Fox News, the total land purchased was about 14,000 acres. This, however, has started debates regarding the court rulings in the West which was said to favor farmers too heavily despite the fact that cities are urging its citizens to conserve and save water.
The director of the US Forage Export Council, John Szczepanski said it will not be easy to fully understand the business model of the Middle East, but it may not be about business at all. He added that the primary focus is about food security and it is the way to ensure a long-term food supply.
Saudi Arabia has attempted to grow its own supply of crops for food for decades but the government decided to reverse that policy to protect the scarce supply of water. As reported by the Daily Journal, the country has adopted a ban on selected crops just to conserve water. 90 percent of the water consumption of the country goes to the sector of Agriculture, based on a Study by the Oxford Business Group in 2013.
Water source problems and other factors have already been addressed by Almarai for the past years. They are now farming worldwide in order to keep the supply coming regardless of whatever conditions may arise. According to Jordan Rose, the company's attorney in Arizona, US has been attractive to water-seeking companies due to its strong legal protection on agriculture.
However, an economist at the University of California at Riverside, Christopher Thornberg, said alfalfa farms are just a waste of resource, suggesting the California government to seize the land under eminent domain. He added that they will soon realized that these current circumstances cannot support the state in the long run.
