Saudi Arabian grain purchaser SAGO said today that Saudi investors abroad had been asked to deliver 355,000 tons of wheat to the kingdom. Other major food importers are also in the process of increasing their strategic food reserves in the Corona crisis.
Saudi Arabia, the world's largest crude oil exporter, had previously urged private investors to invest in agricultural projects abroad to ensure the country's food supply. Now the investors should help ensure that wheat is secured in the import quality known to date.
The grain would be expected in the country from May to November and the amount corresponds to around 10% of Saudi import requirements. The state-owned SAGO usually buys grain using standardized international tenders, in which the import quantity and grain quality are precisely defined. However, private investors can deviate from this.
The Gulf States import 80-90% of their food. They have invested a lot of money in the past few years to buy cheap farmland and other agricultural assets abroad to secure their food supply for decades to come.
Source
Hansa Terminhandel GmbH
