Saudi Arabia

Supply/Demand Basics

  • Corn market size estimated at 3.6 MMT. Insignificant local crop.
  • #1 barley importer in the world with 8 MMT.
  • 487  TMT import of corn co-products.
  • Quality market but also sensitive to price.

Country Overview

  • Population: 32.1 million
  • Population growth: 1.96%
  • Urban %: 78.9%
  • Urban growth: 2.5%
  • GDP: $1.68 trillion
  • GDP growth: 3.6%
  • GDP per capita: $52,183
  • 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 econ omy.

Trade and Market Share Issues

  • The U.S. is the lead corn supplier with 46% market share with over 1.65 MMT. Both Brazil and Argentine come second with equal shares of 28% each.
  • Russia, Ukraine, Germany and Romania supplied 6.4 MMT of barley in 2015. 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.

Policy Issues

  • 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.