Saudi Arabia: This Year Production May Fall By 10%

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In the current year wheat production in Saudi Arabia may fall by 10%. 

In the current year wheat production in Saudi Arabia may fall by 10%. According to the FAO, harvest decline is due to the implementation of the government's plan to phase out domestic grain production.

Harvest of wheat may be reduced to 700,000 tons. The FAO analysts have also noted that this is below harvest of 2012 season, which was 780,000 tons. In order to stop crop production by 2016 completely, Saudi Arabia plans to reduce volume of domestic wheat production by 12.5% per year. These measures are aimed at saving water resources.
In the next three years the country plans to increase its warehouse capacities by 30%. It is necessary to maintain sufficient inventory volumes to satisfy domestic demand for one year.

In the light of the declining domestic production, high demand and environmental concerns, the government encourages investments in the agricultural sector abroad with future re-export to Saudi Arabia.
In 2012-13 MY, started on July 1, grain imports may account to about 13 million tons. Last year’s purchase volume has reached 14.8 million tons. Local importers may buy 7.5 million tons of barley, 2.2 million tons of wheat and 2.1 million tons of corn. Rice import, at the same time, amount to 1.3 million tons.