- Corn market size estimated at 3.2 MMT. Insignificant local crop produced for human consumption annually.
- The world’s largest barley importer with 8 MMT on 2018.
- 13 TMT import of US DDGS.
- Population / growth: 33.5 million / 1.87%
- Urban % / growth: 78.4% / 1.83%
- GDP / growth (PPP): $684 Billion / 2.5%
- GDP per capita (PPP): $49,045
- Oil-based economy which accounts 87% of Saudi budget revenues, 90% of export earnings, and 42% of GDP.
- Declining oil prices and budget deficit pushed the government to reduce fuel subsidy and introduce for the first time 5% VAT for some goods and services.
- Saudi Arabia hosts 6 million foreign workers supporting all sectors of the economy.
Trade and Market Share Issues
- The U.S. is the lead corn supplier with 46% market share with over 1.49 MMT, Argentina come second with 1 MMT while Brazil export 700 TMT of corn to Saudi Arabia.
- Russia, Ukraine, Germany, France and Romania supplied 80% of barley in 2018 while Argentina supplied 764 TMT. No barley exports from the U.S.
- Four Panamax shipments of U.S. Sorghum, 280 TMT (11 million bushels), were discharged at Saudi Arabia ports when China announced an immediate 178.6 percent preliminary anti- dumping duty on U.S. Sorghum.
- Poultry and dairy are the main consumers of imported corn. Corn is sold at market prices, b barley is sold to Bedouins at subsidized price.
- Water scarcity and global price volatility prompted Saudi Arabia to stop local production of green forage by 2019.
- KSA is seeking offshore feed agriculture and livestock export ventures.
- Removal of barley from subsidy lists, by government, could decrease demand.