Saudi Arabia imports more soft wheat, mills need to adjust

Saudi Arabia increasingly imports soft wheat, which is needed for biscuits and other items. The Saudi milling industry is manly laid out for hard wheat and will need to adjust.

In 2011 the main wheat exporters to Saudi Arabia  was the European Union with a 36 percent share, mostly from Germany. It was followed by Canada (26 percent), the United States (14 percent) and Australia (12 percent).

The relatively large share of the EU and the US is remarkable. before 2008 when Saudi Arabia started to import meaningful quantities of wheat, they were under represented as main GCC suppliers and Canada and Australia dominated. Until 2005 India was also an important supplier, before its growing domestic needs impeded exports.

Government financing for Saudi agro-projects finally on its way?

The Saudi Cabinet has greenlighted projects under the King Abdullah Initiative for Agricultural Investments Abroad (KAISAIA), which means that projects financed by the initiative may finally get on their way. Up to 60 percent of the financing will be provided by the government. Target countries need to agree to allow export of at least 50 percent of the crops.