Saudi Arabia Agribusiness Report Q1 2016 - New Study Released

Saudi Arabia will increasingly be dependent on grains imports, as the country has decided to phase out domesticgrains 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 expandproductioncapacity.This strategy has paid off, as the three major producersin the sectorhave allstarted heavy investment initiatives.We believe Saudi Arabia will find sufficient grainssupply 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 grainsand 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 2018/19: -94.6% to 35,000 tonnes. Wheat production will be almost completely phased out in the coming years and Saudi Arabia will become entirely dependent on imports for its grain needs.
Barley consumption growth to 2019: -2.7% to 8.4mn tonnes. Barley consumption growth will decline, as the government tries to encourage the use of alternative feed sources for the booming livestock sector. Corn consumption will boom.
Poultry production growth to 2018/19: 44.9% to 927,400 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: USD12.8bn in 2015, up 2.7% compared with the expected 2014 level; forecast to increase by 4.3% on average per year between 2015 and 2019.
2016 real GDP growth: 3.2%, down from 3.7% expected in 2015, projected to average 2.7% from 2016 to 2019.

Full Report Details at
- http://www.fastmr.com/prod/1063216_saudi_arabia_agribusiness.aspx?afid=301

The Saudi Arabia Agribusiness Report features BMI Research's market assessment and independent forecasts for production, consumption and trade across core agricultural commodities.

BMI's Saudi Arabia Agribusiness Report includes independent commodity price forecasting and analysis for key agricultural outputs, an overview of the agribusiness competitive landscape and a discussion of the downstream context of agricultural production in relation to country food consumption forecasts and composite food and beverage trade forecasts.

Key Benefits

* Use BMI's independent industry forecasts to test other views - a key input for successful planning in dynamic agribusiness markets.
* Apply BMI's medium-term commodity price analysis to assist with budgetary planning and the identification of investment opportunities and potential risks.
* Assess the activities and market position of your competitors, partners and clients.

Coverage

BMI Industry View

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