Saudi Arabia’s wheat production continues to grow

Published 2024년 3월 26일

Tridge summary

Saudi Arabia plans to boost its wheat production by 25% to 1.5 million tonnes in the 2024-25 season, as part of a voluntary program for small farmers, with the potential for adjustments based on environmental and global supply considerations. This increase aims to meet the rising domestic demand, which is also expected to see a 5% rise in wheat consumption to 4.75 million tonnes, driven by a boost in tourism and large-scale construction projects. Additionally, the country anticipates a 6% growth in rice consumption to 1.6 million tonnes, with a 4% increase in rice imports to 1.62 million tonnes, despite having no domestic rice production. Wheat prices, which were set at $467 per tonne last year, are expected to remain similar.

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Original content

Saudi Arabia continues to ramp up its wheat production and is expected to produce 25% more in 2024-25 for a total of 1.5 million tonnes. This is the maximum allowed production quota and may be reduced or increased by the Ministry of Environment, Water and Agriculture (MEWA) depending on the underground aquafer and the world wheat supply, the Foreign Agricultural Service (FAS) of the US Department of Agriculture said in a report. Wheat is grown under a voluntary program and limited to small farmers who are licensed by MEWA to grow either wheat or alfalfa hay. In the past, farmers preferred alfalfa hay as it was more profitable. However, the MEWA set wheat prices at $467 per tonne last year. Prices have yet to be set for the new crop, but farmers anticipate it will remain close to last year’s. Consumption is expected to increase 5% to 4.75 million tonnes. Demand is expected to remain strong over the coming years, the FAS said. With tourism increasing 63% from 2022 and expected to ...

Source: UkrAgroConsult