Saudi Arabia is investing $12.3 billion in domestic agricultural projects and land acquisition abroad to ensure food security, the organisers of an agro-industry event in Riyadh said.
The projects include the King Abdullah Initiative for Agricultural Investment Abroad and the $800 million Saudi Company for Agricultural Investment and Animal Production.
Saudi Arabia’s food sector is expanding at an annual rate of 18.5 per cent and food and agricultural imports account for 15 per cent of overall imports, at $17.3 billion, said Mohammad Al Hussaini, deputy general manager, Riyadh Exhibitions Company, organisers of the recently concluded Saudi Agriculture 2011 exhibition.
This year marks the 30th anniversary of the exhibition, said Al Hussaini.
Meanwhile, Saudi Arabia is set to import 7 million-7.5 million tonnes of barley this year and is looking at long-term deals with major grain exporter Ukraine, the Saudi finance minister said.
“We import around 7 to 7.5 million tonnes of barley as feed for animals,” Ibrahim Alassaf told reporters on the sidelines of a meeting of Arab finance ministers in Abu Dhabi, adding he expected Saudi barley imports to be around that level in 2011.
While Saudi wheat supplies are managed by the state-run Grain Silos and Flour Mills Organisation (GSFMO), the main animal feed barley is still privately imported, although government controls are tightening.
Eye on long-term contracts
Riyadh is now looking at long-term contracts and agricultural investments in Ukraine to ensure the world’s biggest crude oil exporter gets the grains it needs to feed a growing population for years to come.
“The government decided a few months ago on new arrangements for management, including the imports of barley,” Alassaf said.
“With Ukraine, we discussed extensively cooperation with Saudi Arabia with regard not only to barley but also to grains in general,” he said.
“We look at Ukraine as one of the destinations for investments in agriculture.”
Ukraine harvested 8.5 million tonnes of barley in 2010.
