Wheat production in Saudi Arabia continues to rise

Published Mar 26, 2024

Tridge summary

Saudi Arabia is on track to witness a significant shift in its agricultural and food import patterns in the 2024-25 period. The country is expected to experience a 5% increase in wheat consumption, reaching 4.75 million tons, and a notable 25% rise in domestic wheat production, achieving the maximum quota of 1.5 million tonnes as set by the Ministry of Environment, Water and Agriculture (MEWA). This increase in wheat production, however, is contingent upon groundwater levels and the global wheat supply situation. The shift towards wheat cultivation comes as farmers move away from alfalfa hay, encouraged by stable wheat prices set by MEWA at $467 per tonne. Additionally, Saudi Arabia's booming tourism and construction sectors are driving up the demand for imported food staples, with rice consumption expected to rise by 6% to 1.6 million tonnes and rice imports by 4% to 1.62 million tonnes, despite the country not producing rice itself.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Wheat consumption in Saudi Arabia is expected to increase by 5% to 4.75 million tons. Saudi Arabia continues to increase wheat production and is expected to produce 25% more grain in 2024-25, for a total of 1.5 million tonnes. This is the maximum allowable production quota, which may be reduced or increased by the Ministry of Environment, Water and Agriculture (MEWA) depending on groundwater levels and global wheat supply, the USDA Foreign Agricultural Service (FAS) said in a report. In the past, farmers preferred alfalfa hay because it was cheaper. However, last year MEWA set wheat prices at $467 per tonne. Prices for the new crop have not yet been set, but farmers expect them to remain at last year's levels. Wheat consumption is expected to increase by 5% to 4.75 million tons. Demand will remain high in the coming years, according to the FAS. With tourism in the country up 63% since 2022 and the number of international visitors expected to reach 70 million by 2030, the country ...

Source: Zol