INTERVIEW: Saudi Arabia’s wheat, corn markets to see 5% demand growth in 2025

Saudi Arabia, one of the key grain markets in the Middle East, is likely to maintain steady domestic growth in 2025, supported by a positive demand outlook, Anis Alam, chief grain procurement officer at Arabian Agricultural Services Company (ARASCO) said in an interview with Platts Jan. 25.

The country's wheat and corn demand is poised to rise at 5% per year, Alam said. "Currently, Saudi Arabia imports around 3.5 million mt of wheat and 5 million mt of corn, which has a growth potential of 5% a year."

Saudi imports wheat, mostly from Europe and Black Sea as domestic wheat production is lower. Alam believes it should be around 500,000-600,000 mt though some statistics show more than 1 million mt.

The country's wheat output is unlikely to increase in the next few years due to water shortage. "I don't see there is any room for improvement in the production," he said.

Corn, which is used as livestock feed, is imported, mostly from South America - Argentina and Brazil and partly from Ukraine as Saudi's domestic production is negligible – just 100,000-150,000 mt.

Alam emphasized that in 2024, ARASCO imported 1.5 million-1.6 million mt of corn, and this year it plans to import 1.8 million mt.

Exploring new markets for imports

Saudi Arabia is ready to explore other markets for grain imports that can compete with the quality of their traditional suppliers.

Alam said, "We are always exploring new markets for imports because we need to look into a lot of other alternatives...We have explored a lot such as buying corn from India but quality remains a concern."

He added that South American corn comes at a reasonable price which makes it their first choice. However, when prices surge, the country goes for Ukrainian corn as well.

Saudi has always shown interest in trading with Ukraine. "We are receiving barley and corn [shipments] from Ukraine in Jeddah and Dammam [ports]," Alam said, adding that they will continue to explore more in Ukraine.

GFSA controls to ease anytime

The General Food Security Authority (GFSA), a government body responsible for food security, is expected to loosen its control in 2025, meaning Saudi private flour mills would take charge of imports themselves rather than buying from GFSA as they do now.

According to Alam, it may happen anytime soon. "I doubt, this year. But it may happen anytime."

He explained that the National Grain Company and other companies have been established to contribute to achieving the food security strategy so that the government may lift its control and give it to the private sector.

This may allow mills to increase their wheat imports. However, Alam does not see Saudi wheat flour exports jump after this. According to him, all the flour produced by the mills will be used for domestic consumption.

"We cannot export wheat flour at all because mills will grind as much as they need. I am sure that it will remain that way for the next 5 years."

Saudi to become poultry self-sufficient in 2025

Saudi Arabia is planning to phase out poultry imports by becoming self-sufficient in domestic production by 2025, Alam said.

"The country is going be self-sufficient in poultry production this year, hopefully. If not this year, then definitely by mid-2026."

He added, Saudi has already become self-sufficient in eggs since more than 10 years now. "The country is exporting to nearby countries like Yemen, Qatar, Dubai, Kuwait etc.," Alam said.

The nation is also producing all kind of feed like fish feed and exporting some of fish feed as well, he said.