- Corn market size estimated at 3.7 MMT. Insignificant local crop.
- #1 barley importer in the world with 9 MMT on 2017.
- 48,000 MT import of US DDGS.
- Corn quality is a concern but also sensitive to price.
- Population / growth: 32 million / 2.25%
- Urban % / growth: 5% / 2.49%
- GDP / growth (PPP): $1.757 trillion / 3.6%
- GDP per capita (PPP): $55,300
- Oil-based economy with strong government controls over major economic activities. The petroleum sector accounts for 80% of budget revenues.
- Declining oil prices and budget deficit pushed the government to reduce fuel subsidy.
- Saudi Arabia hosts 6 million foreign workers supporting all sectors of the sluggish economy.
Trade and Market Share Issues
- The U.S. is the lead corn supplier with 58% market share with over 2.14 MMT. Both Brazil and Argentine come second with equal shares of 21% each.
- Russia, Ukraine, Germany, France and Romania supplied 77.2% with 5.8 MMT of barley in 2017. No barley exports from the U.S.
- Poultry and dairy are the main consumers of imported corn. Corn is sold at market prices but barley is sold to Bedouins at subsidized price.
- Water scarcity and global price volatility prompted Saudi Arabia to stop local production of green fodder by 2019.
- KSA is seeking offshore feed agriculture and livestock export ventures.
- Removal of barley and other feed ingredients from subsidy lists, by government, could decrease demand.