The Almarai Company, Saudi Arabia’s largest dairy company and third largest poultry company, has announced plans to stop domestic cultivation of forage and rely entirely on imported feed. This move is in response to anticipated new governmental restrictions on water usage, as the country’s economic and population growth continues to overtax available water resources.

“Almarai has been a strong and consistent purchaser of U.S. corn, often paying a premium for U.S. origin corn,” said Cary Sifferath, U.S. Grains Council regional director of the Middle East and Africa. “The company already imports 100 percent of its feed grain needs for milk production.”

It has also made major agricultural land investments in the United States, Argentina and several European countries, where farms owned by the Almarai company produce feed, especially forages, for export back to Saudi Arabia.

The incentives are obvious. A recent study reported that 96 percent of water consumption in the Saudi dairy sector is used for production of forage crops. In a water-starved region, the shift to imports is an important strategic choice for food security.

Almarai is not alone. The government itself has launched “King Abdullah Initiative for Saudi Agricultural Investment Abroad,” with the purpose of securing food security through foreign investment while conserving scarce water resources for urban and industrial use at home. While the Saudis are diversifying their foreign agricultural investments, their longstanding relationship with the Council and U.S. exporters makes this country a significant growth opportunity for U.S. agricultural producers.