August 13, 2007

Saudi Arabia faces acute barley shortage

The Ministry of Agriculture in Saudi Arabia increased the barley subsidy from SR500 (US$133.29) to SR700 (US$186.60) per tonne in a move to ease the animal-feed crisis experienced in various parts of the Kingdom.

The ministry is hoping to maintain the price of barley at SR28 per bag sold at ports of entry and at SR32 per bag in other places to cover logistics costs according to Saudi Press Agency.

Agriculture Minister Fahd Balghunaim has urged the cattle farmers not to depend on barley as a major source of cattle feed and source other feed with higher nutrient values. The present arrangement would be reviewed after three months, the minister added. A ministerial committee recommended the hike in the subsidy for imported barley to counter the current rising trend in barley prices worldwide.