Japan’s wagyu beef looks to conquer the world

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Each cow spends the 30 months of its life cossetted and pampered, reared stress-free and under constant medical watch. (AFP)
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The value of exports has risen more than 200 percent in the last five years — Hong Kong is currently the largest market. (AFP)
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The Hida brand might not yet have the recognition of famed Kobe beef, but overall the international profile of wagyu is on the rise. (AFP)
Updated 01 February 2019
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Japan’s wagyu beef looks to conquer the world

  • Wagyu beef is famous for its melt-in-the-mouth tenderness and marbled fat
  • The value of exports has risen more than 200 percent in the last five years

TAKAYAMA, Japan: In a lush field in the heart of the Japanese mountains, a herd of glossy black cows roam happily — prime examples of the area’s Hida brand of wagyu beef.
With consumption of the famed meat known for its melt-in-the-mouth tenderness and marbled fat on the decline in Japan, producers are looking overseas to boost sales instead.
The Hida brand might not yet have the recognition of famed Kobe beef, but overall the international profile of wagyu is on the rise.
The value of exports has risen more than 200 percent in the last five years — Hong Kong is currently the largest market.
About an hour from Takayama, a town that attracts tourists with its traditional wooden houses, dozens of cows owned by different farmers have free range across a 250-hectare plot leased by the local municipality.
They spend the warm summer months in the tranquil greenery and return to the warmth of the stables when the winter comes around.
There they give birth to calves that are the product of carefully organized breeding to protect the “purity” of each cow’s bloodline.
“It’s important to preserve the bloodline, because good genes guarantee good quality meat,” explains Koichi Maruyama, a local official in charge of the cattle rearing department.
“The quality also comes from the feed,” he adds.
For cows bred for wagyu beef, that means 10 kilogrammes (22 pounds) of rice straw a day, to ensure the intramuscular marbling that gives the meat its characteristic look, and taste.
Each cow spends the 30 months of its life cossetted and pampered, reared stress-free and under constant medical watch.
They are tagged electronically, in a system described as unique in the world, and every cow’s family tree can be traced back at least to its grandparents, if not further.
Some farmers pamper their cows by covering them in coats during the winter, feeding them beer, and even playing them classical music.
Producers in Takayama don’t go that far but that doesn’t mean there is much room for error.

“We never rest, we’re looking after them 24 hours a day, 365 days a year,” says Shuichi Mizobata, on the sidelines of a locally organized wagyu competition.
Cows parade in front of judges and are weighed and measured to determine which will compete at a national face-off that takes place every five years.
A Takayama cow won in 2002, in a victory that still sparks pride for the young Hida brand.
Wagyu cultivation dates back only a few decades, with most Japanese black cattle — the breed that dominates wagyu — derived from a single bull born 80 years ago.
“After the liberalization of beef import rules, we decided to put the focus on very high quality wagyu beef to differentiate our products from imported ones,” said Sota Kamihiro, an official with the agriculture ministry.
Producers have also struggled with the decline in beef consumption that started around 2000, over fears linked to BSE, and a shrinking number of farmers, with existing producers aging and leaving behind no heirs.
In 2013, the agriculture ministry set new export targets with the goal of reaching 25 billion yen ($228 million) in beef sales overseas by 2019.
The goal looks achievable, with sales already at 24.7 billion yen in 2018, a massive increase from five billion when the strategy was put in place.
And the explosion in exports comes despite the eye-watering expense of the product — the most prized portions of wagyu go for around 13,700 yen a kilo.
In Takayama, exports only accounted for five percent, or 43 tons, of the beef sold by producers in 2017, but that was already double the previous year.
The town has an abattoir that observes stringent rules and is one of just four in Japan certified to handle meat for export to the European Union.
Increasingly, producers are also securing halal certification for slaughterhouses — which number around 200 in total across Japan — so they can export to Muslim countries.
After slaughter, the beef is put up for auction, with the carcasses displayed behind glass alongside cards ranking them according to a precise system based on the meat’s marbling, color, texture, and the quality of the fat, according to director Mitsushi Kobayashi.
“The Japanese seek above all to reduce the blood and muscle in the animal, and to develop the fat, the opposite of us,” said French chef Lionel Beccat, who has a Michelin-starred restaurant in Tokyo.
“The meat is sublime, it melts in the mouth, there are different notes depending on the cows, some are floral, others nutty, others spicy,” he added.
“So the meat can be appreciated as it is, you just grill it and that’s it. It’s very Japanese, like sashimi.”


Saudi Arabia’s NHC signs deal with Chinese company to boost building materials supply

Updated 4 sec ago
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Saudi Arabia’s NHC signs deal with Chinese company to boost building materials supply

RIYADH: Saudi Arabia’s building materials supply is set to get a boost with the signing of a deal between the National Housing Co. and a leading Chinese construction firm.

The agreement with China’s CITIC Construction Group seeks to establish an industrial city and logistic zones for building materials, comprising 12 factories, with the objective of securing supply chains for the NHC’s housing projects.

NHC CEO Mohammad Albuty finalized the deal during the official visit of Minister of Municipal and Rural Affairs and Housing Majid Al-Hogail to China.

In a statement, the NHC said the agreement with the Chinese construction group are part of its efforts to secure supply chains for its housing projects and ensure their timely completion and high quality.

The Saudi company said the deal entails the construction of 12 factories specializing in building materials, harnessing Chinese expertise, and involving local factories to uplift business standards.

It added that the deal also aims to draw top-tier service providers across various sectors of the company, its subsidiaries, and other projects.

The company pointed out that the agreement is expected to maximize the economic and developmental impact of the real estate sector in the Kingdom, develop housing projects, enhance their quality, and promote national transformation in the construction sector through these industrial cities and logistic zones.

The statement also highlighted that this collaboration will facilitate the expansion of small and medium factories in the Kingdom, establish direct production lines for the company’s projects, and foster the growth of the local industry. Additionally, it will create numerous job opportunities in the sector.

The company said the agreement strengthen the comprehensive strategic partnership between Saudi Arabia and China, established during the Chinese president’s visit to the Kingdom in December 2022.


IMF forecasts $14bn increase in Egypt’s foreign cash revenue

Updated 23 min 20 sec ago
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IMF forecasts $14bn increase in Egypt’s foreign cash revenue

RIYADH: Egypt’s foreign cash revenue is projected to surge by $13.7 billion from five key sources this year, a 14.6 percent increase over last year, according to the International Monetary Fund. 

This surge is largely due to investments in the Ras Al Hikma City development deal recently signed by the government with ADQ Holdings, as reported by CNBC Arabia. 

The IMF projected that foreign cash inflows from these five sources for the fiscal year 2023-2024 will total around $107.3 billion, compared to about $93.6 billion in 2022-2023. 

These sources encompass proceeds from commodity exports, tourism revenues, Suez Canal revenues, as well as private transfers and net foreign direct investment. 

Despite expectations of an increase in foreign cash revenue from these sources this year, the IMF anticipates inflows to decrease again in the next fiscal year, dropping below the levels of the previous year to approximately $91.2 billion. 

The fund forecasts foreign cash inflows from commodity exports to decline to $33.2 billion during the current fiscal year, compared to $39.6 billion last year, reflecting a decrease of about 16.2 percent, with an expected increase to $35.6 billion next year. 

It also predicts a decline in Egypt’s tourism revenues during 2023-2024 to around $12 billion, compared to $13.6 billion in 2022-2023, reflecting a decrease of about 11.8 percent, with an increase to around $12.6 billion in 2024-2025. 

Furthermore, the financial agency expects a decline in Suez Canal revenues during the current fiscal year to $6.8 billion, compared to $8.8 billion last year, marking a decrease of about 22.7 percent, with an anticipated increase to around $10 billion next year. 

As for net private transfers from abroad, they are anticipated to increase to around $23.1 billion during 2023-2024, compared to about $21.9 billion during 2022-2023, reflecting a 5.5 percent increase, and continuing to rise to $24.6 billion in 2024-2025. 

Similarly, net foreign direct investment inflows are projected to surge during the current year to around $32.2 billion, compared to $9.7 billion in the previous fiscal year, marking a 232 percent increase, and then decline next year to $8.4 billion. 
 


SEC closes $3bn financing for 3.6GW capacity power stations 

Updated 06 May 2024
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SEC closes $3bn financing for 3.6GW capacity power stations 

RIYADH: Saudi Arabia’s power generation is poised for a substantial boost following the successful closing of financing for two electricity projects, with a combined capacity of 3.6 gigawatts. 

The deals involving the Taiba 1 and Qassim 1 independent power producer projects, with a combined financing value of SR11.4 billion ($3.04 billion), signify a major milestone in Saudi Arabia’s energy landscape, the Saudi Press Agency reported. 

The two IPP projects, featuring combined cycle gas turbine technology, were awarded to the Saudi Electricity Co. by the Saudi Power Procurement Co. as part of an alliance with ACWA Power in October 2023. 

Additionally, in November 2023, a 25-year power purchase agreement was signed with the SPPC for both projects, which are being developed on a build-own-operate basis. 

Khalid Al-Qunun, CEO of SEC, commended the efforts of the company’s team in driving transformation in the electric energy sector in the Kingdom, the SPA report added. 

He said: “These projects embody our ongoing ambitions to expand energy generation projects and adopt the latest technologies to ensure the provision of environmentally friendly energy solutions that contribute to achieving the company’s zero neutrality target by 2050, in line with the Kingdom’s ambitious aspirations in the field of energy sustainability.” 

The financing agreements were signed by the two project companies: Sidra One for Electricity for the Taiba 1 station and Qudra Energy for the Qassim 1 station. The SEC holds a 40 percent share in both companies. 

These modern stations represent a notable advancement in electric energy production in the Kingdom. They signify an important step toward a sustainable future by utilizing the latest energy production technologies, such as combined cycle gas turbines known for their high efficiency. 

According to the SPA report, relying on these advanced technologies contributes to improving generation efficiency, reducing emissions, and reducing reliance on liquid fuels in the electricity production sector in the Kingdom. 

These stations mark the beginning of a series of CCGT stations that will expedite the realization of Saudi Vision 2030 goals, including achieving an optimal energy mix and increasing local content. 

This also sets the stage for achieving the goals of the Saudi Green Initiative, aiming for carbon neutrality by 2060. The engineering design of these stations allows for the future integration of carbon capture facilities, underscoring the SEC’s commitment to environmental, social, and governance responsibility, the SPA report added. 


Qatar’s non-energy private sector records improvement in April

Updated 06 May 2024
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Qatar’s non-energy private sector records improvement in April

RIYADH: Qatar’s non-energy private sector witnesses improvement in business conditions in April as the Purchasing Managers’ Index hit 52, compared to 50.6 in March, according to the latest data.

The Qatar Financial Center PMI is a composite single-figure indicator of non-energy private sector performance that is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases. A reading above 50 signifies sectoral expansion, while below that mark indicates contraction.

The latest PMI survey data from the center compiled by US-based capital marker firm S&P Global showed that the 1.4-point increase between March and April in the headline figure was among the largest registered over the past two years, according to a statement.

Moreover, the data disclosed that while output, new orders, employment and purchasing activity all increased at faster rates than in March, price pressures turned slightly negative, as both input and output prices fell marginally.

Additionally, the volume of incoming new business in Qatar’s non-energy economy rose at the fastest rate in seven months in April. This is mainly attributed to new customers and high quality, competitive products.

Total activity also surged at the fastest rate since last September in April as new projects and firms continued to complete existing workloads.

Furthermore, non-energy private sector companies were increasingly optimistic on growth over the next 12 months in April. Companies residing in the Gulf country linked positive forecasts to marketing campaigns, business development plans and efficiency drives.

Consequently, stronger inflows of new work and increased confidence led to a sharper rate of hiring growth in April. Employment has risen for 14 months, and the rate of job creation was running above the long-run survey average in April.

The Qatar PMI indices are compiled from survey responses from a panel of around 450 private sector companies. The panel covers the manufacturing, construction, and wholesale as well as retail and services sectors, and reflects the structure of the non-energy economy according to official national accounts data. 

Islamic banking

The total value of the assets of Islamic banks operating in Qatar during the month of March 2024 increased by 6.4 percent on an annual basis to reach about 563.9 billion Qatari riyals ($154.8 billion), according to newly released statistics.

The monetary bulletin issued by the Qatar Central Bank for the month of March showed that this recorded figure represents 28 percent of the total assets of banks in Qatar, amounting to approximately 1.99 trillion riyals.

The data also revealed that the total value of Islamic banks’ financing in Qatar increased to 389.9 billion riyals, an increase of 3 percent over the corresponding month of last year.


Saudi Arabia’s Ades secures $136.2m deals in Qatar, Egypt

Updated 06 May 2024
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Saudi Arabia’s Ades secures $136.2m deals in Qatar, Egypt

RIYADH: Saudi Arabia’s Ades Holding Co. continues to expand its regional footprint as it seals two contracts worth SR511 million ($136.2 million), highlighting its growing influence in the oil and gas sector. 

Ades, which specializes in providing drilling and intervention services, signed a contract valued at up to SR350 million with Total Energies to operate an offshore drilling platform in Qatar.  

The agreement includes a mandatory one-year period with an option to extend it for up to an additional 18 months, according to a bourse filing. 

Operations are slated to begin in the second half of 2024. The company emphasized that there are no related parties involved in this contract. 

This contract comes on the heels of April’s announcement, where Ades was awarded the responsibility to operate another offshore drilling platform by Total Energies in Qatar.  

This previous contract enables Ades to maintain its market presence robustly, as it will now operate three drilling platforms in the region.  

This expansion comes after the company’s strategic move to transfer its Emerald Driller platform to Indonesia.  

Moreover, Ades announced in a separate release that it was awarded a 21-month contract to operate an elevated platform in the Gulf of Suez.  

The company received a direct award letter from the Suez Oil Co, also known as SUCO, in Egypt, with operations expected to commence in the coming weeks. 

In a statement on Tadawul, the company disclosed that the contract is valued at SR161 million.  

This new engagement in Egypt is part of Ades’s broader strategy to reactivate its operations regionally. It follows recent contracts in Thailand and Qatar, bringing the total number of reactivated platforms to three out of the five that were recently suspended in Saudi Arabia. 

The publicly traded company saw a slight decrease in its stock price after its announcements.