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November 18, 2008


Saudi Arabia reduces subsidies on feed imports
                 

 

The government of Saudi Arabia has announced a decision to reduce import subsidies on barley, feed corn and other animal feed ingredients in response to the declining world grain and feed prices, reports the US Department of Agriculture.

 

According to the new decree, import subsidy on barley, the leading feed grain in Saudi Arabia, was reduced from US$320 to US$200 per tonne.  USDA says the country imports approximately seven million tonnes of barley annually, about 50 percent of world available feed barley exports.  The recent mandate eliminated fish meal from subsidy list.

 

In March 2008, the Saudi government increased its barley import subsidy from US$186.67 to US$320 per tonne after traditional livestock farmers complained that they were unable to feed their herds when the retail price of 50 kg of barley exceeded US$13.13 due to the feed's high import prices in the world market. USDA reports that government's increased subsidy assistance reduced the barley retail price by more than 50 percent and increased barley imports by 110 percent for the third quarter of calendar year 2008 (July-September) over the same period a year earlier (1,836,000 tonnes vs. 872,000 tonnes). 

    

Barley has been the preferred animal feed for local Bedouins, and approximately 80 percent of imported barley is used in feeding their sheep, camels, and goats, especially when pasture conditions are poor and barley prices are lower than alternative feed.  

                                         

The following table shows the revised animal feed subsidy rate per tonne in US dollars.

 

Feed Type

Protein Percentage

Energy per ton

Subsidy Amount

Subsidy Amount

Oct 8

Mar 8

Barley

Feed barley specification

Feed barley specification

$200.00

$320.00

Yellow corn

8.5

3250

$234.67

$266.67

Soybean meal 

48

2440

$348.53

$396.00

Soybean meal 

44

2230

$317.87

$361.33

Cotton seed meal 

40

2400

$311.47

$353.60

Canola meal (38 percent protein)

38

2000

$279.20

$317.07

Palm Kernel meal 

17

2630

$227.73

$258.37

Sorghum (1)

11

3212

$247.73

$250.13

Sorghum (2)

7

3212

$220.00

$133.33

Wheat bran (15%)

15.7

2550

$217.60

$247.20

Wheat bran (17%)

17

2530

$221.87

$252.00

Soybean hulls 

12

2780

$215.47

$244.80

Alfalfa pellets 

17

1600

$166.67

$236.00

Alfalfa pellets 

18

2220

$207.73

$205.87

Alfalfa pellets 

20

1630

$181.87

$189.33

Rice bran 

3

1520

$102.93

$117.07

Sunflower hull

4

1440

$102.40

$116.27

Oath

11.4

2550

$199.47

$226.67


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