Ask for wheat and corn
Why Islam is good for the grain market
Saudi Arabia is expected to purchase more wheat and maize from the global market in marketing year 2017-2018. At least, that's the USDA's forecast. The reason for this is a growing demand from the animal feed sector and human consumption. The background for this must be sought in Islam.
The Saudi Arabian USDA office in Riyadh writes in a forecast that grain maize imports are expected to reach an all-time high. It puts total imports for the 2017-2018 season at 4,3 million tons. That is an increase of 400.000 tons compared to the previous season. The import of milling wheat also set a record, namely 3,7 million tons this marketing season. This represents an increase of 200.000 tons compared to the previous season.
400
thousand
Lower domestic production
Both the demand for feed and milling wheat is increasing in Saudi Arabia. The country is reducing its own production because of water-saving measures. Population growth is driving up the demand for milling wheat. The lion's share of the import is durum wheat, largely from Germany and Lithuania. The USDA also expects a boost in tourism to increase wheat consumption.
Islamic tourists
Every year, the Arab country attracts 8 million Muslim tourists who visit the Mecca Al-Mukarama region for their Umrah Pilgrimage† The government aims to increase this number to 15 million by 2020 and even to 30 million by 2030, the USDA writes. The USDA expects demand for wheat flour and other food products to rise sharply as a result.
Less own livestock feed
The increase in the import of grain maize has its background in the animal feed market. The country is using less and less barley in animal feed. In addition, the production of roughage is falling due to the aforementioned water shortages. This means less water is available for irrigation.
Feed manufacturers use less barley, because the demand from livestock farming focuses on concentrates, due to the price level and nutritional value. Reducing barley imports and less roughage jointly generate interest in alternatives, such as grain maize and feed wheat.
Corn is especially popular with the poultry sector in Saudi Arabia. About 60 percent of all poultry feed consists of maize. In addition, it is widely used by feed manufacturers and dairy farms in their rations.
Niels van der Boom
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