The Saudi General Organization for Grain recently completed tender procedures for import of 1.5 million tons of barley fodder, which represents the first institution tenders this year 2017.
Ahmed Al-Faris, the governor of the Saudi General Organization for Grain, said that his country is the largest importer of barley forage in the world, with annual imports amounting to 8 million tons, noting that the Kingdom’s imports of the forage barley makes up a third of world trade, which amounts to between 20-25 million tons annually.
And the Kingdom stopped cereals locally to avoid wasting water, which Saudi suffering from scarcity. The barley fodder is used as food for livestock in Saudi Arabia, and its a type of grain which different from other types of barley.
Russia, Ukraine, Australia, are the most countries that Saudi Arabia, imports barley fodder from, but their order varies from year to year
And the governor of the Saudi General Organization for Grain said that these three countries topping the largest barley fodder producers in the world and followed by Argentina, and then the European Union.
Al-Faris said that prices were almost fixed or semi-stable for six months ago, for comparison, the recent tender has knocked down the price of $ 190 per ton while the tender for the month of December has knocked down at $ 186 per ton. And he added that global demand and the quantity of the crop and the strength of the dollar are the three factors that determine the barley fodder prices, noting that grain prices would rise in case of the rise of the dollar. And he stated that his country has 23 eligible companies to compete for tenders to import barley fodder, and the tender has been awarded on the last nine companies only.
And he announced that his country imported 3.5 million tons of wheat a year, and the growth rate is 2% -2.5% in line with the of population increase. Noting that Saudi Arabia has a strategic stock of wheat is enough for 8 months.