Grain Consumption & Imports in Saudi Arabia

Summary:

The interview with Anis Alam, Grain Procurement Chief at Arasco, focuses on grain consumption and imports in Saudi Arabia. Here’s a summary of the key points discussed:

Wheat Production: The wheat production in Saudi Arabia was estimated at 1.1 million tons in 2023. Estimates for 2024 suggest a further decrease to around 700-800,000 tons due to reduced farmer efforts and acreage.

Wheat Consumption and Procurement: Saudi Arabia’s wheat consumption is approximately 3-3.5 million tons annually, necessitating imports of 2.5-2.8 million tons. Importation is primarily handled by SAGO alone, with SALIC, ARASCO and others participating in importing wheat for feed purposes.

Barley Consumption: Barley imports are expected to decrease to slightly less than 4 million tons due to increased focus on feed production and a shift towards consolidated livestock farming practices.

Corn Consumption: Corn imports are set to increase, particularly due to expansion in the poultry production sector. Saudi Arabia aims to achieve 100% self-sufficiency in poultry production by 2025-26. Corn imports are expected to reach 5 million tons, with only a small portion being domestically produced.

Origins of Feed Grain Imports: South America, particularly Argentina and Brazil, remain key origins for feed grain imports due to quality and uninterrupted deliveries. While Ukrainian corn is considered, concerns about quality and premiums make South American sources preferable.

Overall, the interview provides insights into the dynamics of grain consumption, production, and imports in Saudi Arabia, particularly focusing on wheat, barley, and corn, as well as the strategies and considerations involved in procurement and import decisions.