October 25, 2024
Saudi Arabia's wheat and corn imports to rise in 2024-25 as domestic production grows
The US Department of Agriculture's (USDA) Foreign Agricultural Service said that Saudi Arabia is set to increase its wheat imports to 4.25 million tonnes in the 2024-25 period, a 2% rise from the 4.16 million tonnes imported in 2023-24, World Grain reported.
The report highlighted that domestic wheat production is also on the rise, projected to reach 1.5 million tonnes in 2024-25, up from 1.2 million tonnes in the previous year. This marks a significant increase from the 625,000 tonnes produced in 2022-23. At the same time, domestic wheat consumption was estimated at 4.512 million tonnes for 2023-24, with an expected annual growth rate of 4%.
Saudi Arabia's General Food Security Authority (GFSA), the country's sole wheat importer, is mandated to purchase up to 1.5 million tonnes of locally produced wheat in 2024-25. This is part of the effort to meet the expected total wheat consumption, which is projected to reach 4.69 million tonnes.
In the 2023-24 period, Russia was the largest supplier of wheat to Saudi Arabia, holding a 49% share of the market. The European Union (EU-27) followed with 41%, while Brazil accounted for 10%.
Meanwhile, corn consumption in Saudi Arabia, primarily used for animal feed, is also on the rise. It is estimated to reach 4.54 million tonnes in 2023-24 and is projected to increase by 4% to 4.74 million tonnes in 2024-25. Corn forms about 60% of poultry feed formulations and is an important feed grain for the domestic dairy industry.
"Corn consumption is expected to continue to increase significantly over the next several years as Saudi Arabia strives to meet self-sufficiency in domestically produced chicken meat," the FAS report stated. The country currently meets 80% of its chicken meat demand through domestic production.
While corn production for human consumption remains minimal, Saudi Arabia is expected to import approximately 4.5 million tonnes of corn in 2024-25. This figure is slightly down from the estimated 4.7 million tonnes imported in 2023-24, due to increased ending stocks.
Latin American countries continue to be major suppliers of corn to Saudi Arabia, driven by competitive pricing and high-quality product standards. In 2023-24, Brazil held a 40% market share, with Argentina closely behind at 39%, and the US supplying 18% of Saudi Arabia's corn imports.
- World Grain