Saudi Arabia to import more wheat
Saudi Arabia’s wheat imports are projected to rise to 4.25 million tonnes in 2024-25, up from 4.16 million tonnes in 2023-24, according to the USDA. Wheat production is expected to increase to 1.5 million tonnes. Corn consumption, crucial for animal feed, is estimated at 4.54 million tonnes, with imports dropping slightly to 4.5 million tonnes. Barley imports are projected to rise by 30% to 2.5 million tonnes to meet feed demand.
RIYADH, SAUDI ARABIA — Wheat imports for Saudi Arabia are projected to move upward in 2024-25 to 4.25 million tonnes, a 2% increase from 4.16 million tonnes in 2023-24, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA).
In its semi-annual report on Oct. 21, the FAS said wheat production in Saudi Arabia is projected to reach 1.5 million tonnes, up from 1.2 million tonnes in 2023-24 and a sharp increase from the estimated 625,000 tonnes in 2022-23. Domestic wheat consumption was estimated at 4.512 million tonnes in 2023-24 and is projected to grow 4% annually.
The General Food Security Authority (GFSA), the country’s monopsony wheat importer, has a mandate to purchase up to 1.5 million tonnes of locally produced wheat in 2024-25 to help meet expected consumption of 4.69 million tonnes.
Russia was the dominant wheat supplier to Saudi Arabia in 2023-24 with a 49% market share, followed by EU-27 at 41% and Brazil at 10%.
Consumption of corn, primarily used for animal feed, is estimated at 4.54 million tonnes in 2023-24 with a 4% increase to 4.74 million tonnes in 2024-25. Corn accounts for about 60% of poultry feed formulations and is a key feed grain for the domestic dairy industry.
“Corn consumption is expected to continue to increase significantly over the next several years as Saudi Arabia strives to meet self-sufficiency in domestically produced chicken meat,” the FAS said. “Currently, the country is 80% self-sufficient in chicken meat.”
With a minute amount of corn produced for human consumption, Saudi Arabia is projected to import about 4.5 million tonnes to meet total demand in 2024-25, down slightly from an estimated 4.7 million tonnes in 2023-24 due to increased ending stocks.
Corn from Latin America continues to dominate the Saudi market due to its competitive prices and presumed high quality. In 2023-24, Brazil was the largest supplier of corn to Saudi Arabia and had 40% market share, closely followed by Argentina at 39% and the United States at 18%.With no domestic production, imports for barley, which is traditionally mixed with alfalfa to feed livestock, are projected to increase to 2.5 million tonnes in 2024-25. If realized, imports would be up 30% from 1.92 million tonnes the previous year to meet greater demand by feed processors.
Source Link : https://www.world-grain.com/articles/20614-saudi-arabia-to-import-more-wheat
