January 20, 2012

 

Saudi Arabia to put up wheat silo, mill in Jizan
 

 

Saudi Arabia inked two deals worth SAR560 million (US$149.3 million) to put up a wheat silo and a flour mill at Jizan Port, stated the country's agriculture minister.

 

The leading oil exporter plans to raise its storage capacity to more than three million tonnes of wheat from around two million tonnes in two months, enough to cover its annual consumption, said Agriculture Minister Fahad Balghunaim.

 

The new Jizan silo will have a capacity of 120 kmt of wheat.

 

Balghunaim, who also heads the country's state-run Grain Silos and Flour Mills Organisation (GSFMO), said the second contract was to build a mill with the capacity to process 600 tonnes of wheat a day.

 

Both projects will take 26 months to complete.

 

In October, Waleed el-Khereiji, director general of GSFMO said various projects were already under way to add 710,000 tonnes of wheat storage capacity.

 

Saudi Arabia plans to import around 1.9 million tonnes of wheat this year, slightly up from the 2011 figure due to an increase in consumption and a planned decrease in local purchases.

 

The country abandoned plans for self-sufficiency in wheat in 2008 and aims to be 100% reliant on imports by 2016 in order to save water.

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