Saudi Arabia makes first wheat purchase from overseas farmland investment

Saudi Arabia’s state grain buyer SAGO on Monday said it bought 60,000 tonnes of Ukraine wheat from investment firm SALIC, marking its first purchase from agricultural investments overseas aimed at enhancing the country’s food security.

The Ukraine wheat cargo was bought at $248 a tonne, after the kingdom asked Saudi private investors with farmland overseas on April 6 to supply it with around 10% of its local needs this year.

The Saudi call comes as regional food importers scramble to beef up reserves as coronavirus lockdowns up-ended supply chains.

The world’s top oil exporter has long encouraged its private investors to pour money into agricultural investments abroad to shore up the country’s food security, without tangible results — until Monday’s purchase in terms of imports for SAGO.

The state grain buyer had originally estimated it would need 355,000 tonnes from private investors this year.

Financial Post