May 04, 2011
Saudi Arabia will not purchase Australian feed barley
Saudi Arabia, Australia's biggest feed barley importer by far with annual purchases of around eight million tonnes, is looking elsewhere for barley this year.
However, that figure has dropped to about six million tonnes this year, with drought, flood and rain damage reducing the amount of grain Australian growers can supply.
Chris Kochanski, from the Emerald Group, says the Saudi government has reduced subsidies on Australian grain this year.
"That's reduced the Australian competitiveness of barley into that market. The Saudis have reduced their holding stock of feed grains and they've also been buying cheaper maize from African exporters."