Homepage  Homepage     Search on site  Search on site     To write the letter  To write the letter     Site map  Site map
Agro Perspectiva
We are on: 
   
 


Home > News

Saudi barley import tenders for July-September 2020 - 1.68 million MT

21.07.2020 13:34 "Agro Perspectiva" (Kyiv) Following are selected highlights from a report issued by a U.S.Department of Agriculture attache in The Riyadh (Saudi Arabia), the Saudi Arabia Grain Organization (SAGO) signed two barley purchase contracts for approximately 1.68 million Metric Tons (MT) in the first quarter of this marketing year (July 2020 — September 2020) — a decrease of nearly 12 percent from approximately 1.91 million MT imported in the same period last

year. Higher domestic barley prices and competitively priced processed animal feed have decreased the demand for barley in the Kingdom. Imported corn is likely to substitute for barley, but corn stocks are currently adequate.

Revisions to Animal Feed Subsidies

The Saudi Ministry of Environment, Water and Agriculture (MEWA) issued a new animal feed policy in January 2020. The government now makes direct payments to livestock and poultry producers instead subsidizing grain and feed imports (with the exception of hay). Small livestock farmers — the dominant users of barley — are given direct monthly per head cash payments. Small farmers are those that have a maximum of 300 animals from each of the four livestock categories (sheep, goats, camels and cattle). The farmers receive monthly per head subsidies of $2.13 for goats and sheep, $10.67 for camels, and $16 per head for cattle. The total subsidy budget for this category is $320 million a year.

SAGO plans to periodically adjust its barley sales price so that it is equal to or higher than its costs. (Where cost is defined as CIF import prices and all logistical related expenses such as Customs clearance charges, domestic transportation and packing costs.) Total domestic logistical cost is estimated at approximately $50 per MT. Currently, the price of 50 kg of barley is SAR56.35 or $15.03 (inclusive of 15 percent value added tax implemented on July 1, 2020). SAGOs average barley import price for the 2.1 million MT that was scheduled to arrive at Saudi ports for March-June 2020 was $212.75 per MT and total cost after packing is $262 per MT. Given the current $300.53 per MT selling price, the sales price exceeds cost by approximately $38.53 per MT.

So SAGO now has grounds to claim it is making a profit from selling barley. They have historically provided subsidies and, as a consequence, always made losses. But it isnt clear how SAGO accounts for depreciation, management costs, etc… or how it allocates those costs. SAGOs owner, the government, is also encouraging livestock producers to reduce barley consumption.

Availability of Highly Competitive Processed Livestock Feed

ARASCO, the largest Saudi animal feed processor, is currently selling its Wafi brand feed for 20 percent less than barley. (A 50 kg-bag of Wafi, the companys signature brand manufactured compound animal feed, has an ex-factory price at $11.96 inclusive of VAT). It is likely that ARASCO is keeping the price of Wafi low as a temporary marketing measure to entice traditional livestock producers to feed Wafi.

ARASCO has indicated that a kilo of Wafi replaces at least l.5 kg of barley and results in greater weight gain. The increased use of processed feed will reduce the demand for feed barley and increase demand for corn.

Agro Perspectiva

< Nufarm announces changes to global manufacturing footprint All news for
21.07.2020
Cargill commits to restoring 600 billion liters of water by 2030 >

01.12.2022  
04:16 Cargill announces acquisition of Owensboro Grain Company
03:14 FAO and Pacific nations weigh local innovations as solutions to growing climate and nutrition challenges
02:37 Global Environment Facility tasks FAO and IFAD to lead new $230 million agrifood systems transformation program
02:15 Cargill Appoints Brian Sikes as President and Chief Executive Officer, and Dave MacLennan as Executive Chair of the Board
23.11.2022  
05:44 Australia sugar production for 2022/23 is estimated to rise slightly to 4.4 MMT
21.11.2022  
07:54 U.S. provides up to $20 mln for Grain from Ukraine initiative
07:25 Grain from Ukraine program foresees provision of at least 5 mln people with grain until end of spring 2023
16.11.2022  
10:02 World sugar production - 179.6 million tonnes - FAOs preliminary forecast
15.11.2022  
20:11 Rice. The 2022/23 global harvest is still envisaged to remain at an overall average level of 512.6 million tonnes
19:38 World wheat production is forecast to reach a record 784 million tonnes in 2022/23,
19:32 Alarming signs as the global food import bill set to rise to nearly US$2 trillion due to higher prices
10.11.2022  
13:35 Conflict on the Black Sea: a review of Ukraine sunflowerseed
08.11.2022  
08:12 Ukraine: FAO reinforces its presence to optimize technical and humanitarian assistance
02.11.2022  
09:52 Pork. Global production is forecast to rise 1 percent in 2023 to 111.0 million tons as production in China increases
09:33 Turkey raises tariff on imported sunflowerseed
09:24 India: The FSSAI's 2021 Draft Amendments to the Approval of Non-Specified Food and Food Ingredients Regulation is now a Final Amendment in 2022
31.10.2022  
08:00 New $250 million USAID grant will boost FAOs efforts to strengthen global health security and agrifood systems
07:45 Global market overview onions
28.10.2022  
07:00 China: Worlds Largest Walnut Producer Turns to Exports
27.10.2022  
08:44 Credit Union Member Farmers in Ukraine Receive Free Fuel Through Worldwide Foundation for Credit Unions Program
24.10.2022  
13:37 EBRD commits up to EUR3 billion to Ukraine
21.10.2022  
17:00 European Commission and EIB initiate feasibility study to better connect Ukrainian and Moldovan railway networks with EU
14.10.2022  
20:15 EBRD and United Kingdom join forces to back Ukrenergo
20:11 Canada and EBRD join forces to support Ukraines Naftogaz
12.10.2022  
21:03 Strong Farmer Selling Sparks Argentina Exports
20:32 EU Corn Imports Remain High with Smaller Crop
10.10.2022  
19:54 Inflation in Ukraine up to 1.9% in Sept, to 24.6% in annual terms - statistics
09.10.2022  
10:54 Turkey Peach and Nectarine Prospects Continue to Ripen
09:32 EU27 sugar production for MY 2022/23 is forecast at 16 MMT
07.10.2022  
11:35 World Bank improves forecast for growth of Ukrainian economy in 2023 to 3.3%
11:17 Asia-Pacific countries urged to rapidly transform agrifood systems as hopes fade for achieving the Sustainable Development Goals by 2030
11:11 Lower forecasts for 2022/23 global cereal output, utilization and trade
11:05 FAO Food Price Index drops for the sixth consecutive month
10:26 How sustainable forest management can enhance the worlds biodiversity
05.10.2022  
10:22 Turkeys pistachio production in MY 2022/23 is forecast to increase year-over-year to 210,000 MT
04.10.2022  
20:05 World Bank improves forecast for growth of Ukrainian economy in 2023 to 3.3%
12:11 Tackling food loss and waste: A triple win opportunity
28.09.2022  
08:47 EBRD expects Ukraines economy to contract by nearly a third in 2022
27.09.2022  
15:48 Farmers sowed 961,000 hectares of winter rapeseed
13.09.2022  
07:03 China vegetable oil imports plunge in 2021/22 but forecast to recover in 2022/23
05:00 India Imposes Export Restrictions on Certain Types of Rice
08.09.2022  
16:43 Famine in Somalia projected, lives of millions of people are at immediate risk, UN says
05.09.2022  
19:00 Lower cereal production outlook underpins downward revisions for utilization and stocks in 2022/23
18:55 World food commodity prices dip for fifth month in a row in August
31.08.2022  
08:55 BASF and Corteva Agriscience collaborate to deliver the future of weed control to soybean farmers
29.08.2022  
23:37 Ukraine and Moldova abolish permits for intl cargo transportation from Sept
14:57 Chile: Walnut production estimates in 165,000 MT in 2022/23 MY
25.08.2022  
14:12 Prices for rapeseed (non-GMO) at the western border of Ukraine fell to the level of USD530-550/t
09:55 The supply of wheat on the market is increasing
09:45 With higher food prices and pressing needs, UN team in Algeria calls for support for Sahrawi Refugees

Also available: 


NewsNews - News - News - News - News - News
BriefWeekly Reports - Free article
SubscriptionTariff - News&Reports
AdvertisingMagazine - Site
ConferencesForum AGRO-2013 - DAIRY WORLD-2008 - FERTILIZERS-2010
Statistics
For our clientsAgroNewsDaily - Ukrainian Grain&Oilseed Market - Fertilizers - Milk Monthly - Milk Weekly
About usAbout project - Contact
2002 -2022 © Agrarika, ltd.
tel.: +380 44 5934543; +380 44 5934540
e-mail: client@agroperspectiva.com