Saudi Arabia’s wheat imports to reach 4.25M tonnes in 2024-25 on growing food, feed demand

SAUDI ARABIA – Wheat imports for Saudi Arabia are expected to reach 4.25 million tonnes in 2024-25, marking a 2% increase from the previous year’s total of 4.16 million tonnes, according to a recent report by the Foreign Agricultural Service (FAS) of the U.S. Department of Agriculture (USDA).

This rise in imports reflects the Kingdom’s growing demand for wheat, driven by both population growth and the expansion of its food security initiatives.

The FAS’s semi-annual report, released on October 21, 2024, highlighted that Saudi Arabia’s domestic wheat production is also projected to see significant growth, climbing to 1.5 million tonnes in 2024-25 from 1.2 million tonnes in the previous year.

This represents a remarkable increase from the 625,000 tonnes produced in 2022-23, driven by government investments in agricultural sustainability and the utilization of advanced farming technologies.

Despite the projected increase in domestic wheat production, Saudi Arabia’s wheat consumption, estimated at 4.512 million tonnes in 2023-24, is expected to continue rising at an annual growth rate of 4%.

The General Food Security Authority (GFSA), Saudi Arabia’s sole wheat importer, has committed to purchasing up to 1.5 million tonnes of locally produced wheat in the 2024-25 season to supplement imports and meet the expected consumption of 4.69 million tonnes.

Russia remained the largest wheat supplier to Saudi Arabia in the 2023-24 period, accounting for 49% of total imports.

The European Union followed with a 41% market share, while Brazil contributed 10%. These nations have leveraged competitive pricing and strategic trade agreements to secure their positions in the Saudi wheat market.

On the other hand, Saudi Arabia’s consumption of corn, primarily used for animal feed, is also set to rise.

The FAS estimates corn consumption at 4.54 million tonnes in 2023-24, with a 4% increase projected for 2024-25, pushing the total to 4.74 million tonnes. Corn, which makes up about 60% of poultry feed formulations, is critical for the country’s growing poultry and dairy sectors.

Brazil continues to dominate the kingdom’s corn market, holding a 40% market share in 2023-24, followed closely by Argentina with 39%, and the United States with 18%.

Corn imports are projected to stabilize at around 4.5 million tonnes in 2024-25, down slightly from 2023-24 due to rising domestic stock levels.

Barley, another key feed grain in Saudi Arabia, is expected to see a sharp increase in imports.

The FAS projects barley imports will rise to 2.5 million tonnes in 2024-25, a 30% jump from 1.92 million tonnes in the previous year. This surge is driven by growing demand from feed processors, who rely on barley mixed with alfalfa to sustain livestock.

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