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.
