Saudi Arabia Agribusiness Report Q4 2013


Naperville, IL -- (SBWIRE) -- 08/20/2013 -- Reportstack, provider of premium market research reports announces the addition of Saudi Arabia Agribusiness Report Q4 2013 market report to its offering
Saudi Arabia will increasingly be dependent on global grain supply, as the country has decided
to phase out domestic grain production in a bid to preserve the country's water supply. The government has
not abandoned its strategy of self-sufficiency in poultry and has been ramping up incentives to expand
capacity production. This strategy has paid off, as the three major producers in the sector have all started
heavy investment initiatives. We believe Saudi Arabia will find sufficient grain supply from the Black Sea
region and the EU to supply its meat and food processing industry in the coming years. However, the
country will remain highly vulnerable to volatile grain and feed prices. Recent spikes in feed prices have
turned us more cautious on margins for dairy and livestock producers in the country, especially those that
import inputs from abroad.
Key Forecasts
? Wheat production growth to 2016/17: -56.3% to 479,700 tonnes. Wheat production will continue to
decrease in the coming years on the back of the government's programme to phase out production.
Corn consumption growth to 2017: 34.6% to 2.7mn tonnes. Corn consumption will be mainly driven
by the strong growth of the poultry sector, as corn is a major feed ingredient.
Poultry production growth to 2016/17: 50.0% to 885,000 tonnes. This spectacular growth will mainly
come from the effects of three major poultry farms' (Al-Watania, Al-Fakieh and Almarai) capacity
expansion, along with continuous government support.
BMI universe agribusiness market value: US$2.25bn in 2013, forecast to increase by 4.7% on average
per year between 2013 and 2017.
2013 real GDP growth: 3.6% year-on-year (y-o-y), down from 6.8% in 2012, projected to average
3.2% from 2013 to 2017.
2013 consumer price inflation: 4.1% average, down from 4.5% in 2012, projected to average 4.3%
2013 to 2017.

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Roger Campbell
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