April 4, 2012

Saudi Arabia's grain imports may hike 16%

Saudi Arabia, the world's largest barley buyer, may increase grain imports by 16% in the 2011-12 marketing year on animal feed demand, the UN's Food & Agriculture Organization (FAO) forecast.

Grain imports will climb to 12.91 million tonnes in the year through June from 11.16 million tonnes a year earlier, the Rome-based FAO wrote in a report on its website today. The outlook for imports was raised from 12.16 million tonnes in October.

Saudi Arabia plans to phase out water-intensive crops including wheat by 2016, according to the FAO. The country stopped subsidies for barley production in 2003 to save water.

Wheat imports are forecast to be a record 2.3 million tonnes, partly for use in feed to substitute barley and yellow corn in animal rations, the FAO said. Barley imports are expected to be 7.3 million tonnes and corn purchases are seen at 2 million tonnes, the report showed.

The country's wheat crop, which will be harvested from the middle of April, is forecast to drop to one million tonnes from 1.1 million tonnes in 2011, according to the FAO.