Saudi Arabia to Reduce Wheat and Corn Imports but Increase Barley Purchases

UkrAgroConsult

Saudi Arabia will reduce wheat imports by 10% in the MY 2025/26, cutting purchases to 3.2 million metric tons (MMT) due to increased domestic production, which may reach 1.5 MMT with government support. Corn imports are also expected to decline by 500,000 metric tons compared to the record-high 5 MMT in the MY 2023/24, the USDA reported.

Wheat production in the country is supported by a quota system, allowing up to 5,000 small farmers to cultivate the crop on plots of up to 50 hectares annually and sell it at a government-set purchase price. The price is expected to remain at $480 per ton in 2025, making wheat cultivation profitable. Additionally, the government plans to phase out alfalfa production by the MY 2027/28, which could further boost wheat production.

In contrast, barley imports are projected to rise by 10% to 3.3 MMT in the MY 2025/26, driven by lower global prices and strong demand from livestock farmers. Saudi Arabia does not produce feed barley, relying entirely on imports to meet its livestock feed needs.

However, future demand for barley may decline as farmers adopt more efficient feeding methods and switch to processed animal feed. Additionally, the ban on alfalfa production will increase its price, forcing livestock farmers to reconsider their feeding strategies.

Saudi rice imports are also expected to drop by 14% in 2025, totaling 1.5 MMT. These shifts highlight the kingdom’s efforts to adapt its agri-food policies to evolving economic and environmental conditions.

Tags: wheat, imports, corn, barley, Saudi Arabia