Saudi Arabia: Grain Market 2022

Grain Market Size in Saudi Arabia

The Saudi grain market declined to $X in 2021, shrinking by -2.5% against the previous year. In general, consumption showed a abrupt decline. As a result, consumption reached the peak level of $X. From 2014 to 2021, the growth of the market remained at a somewhat lower figure.

Grain Production in Saudi Arabia

In value terms, grain production skyrocketed to $X in 2021 estimated in export price. Over the period under review, production, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2019 when the production volume increased by 156% against the previous year. Over the period under review, production attained the maximum level at $X in 2015; however, from 2016 to 2021, production stood at a somewhat lower figure.

The average yield of cereal grains in Saudi Arabia expanded slightly to X tons per ha in 2021, with an increase of 4.1% compared with 2020 figures. Over the period under review, the yield, however, recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2019 with an increase of 9.6%. Over the period under review, the average grain yield hit record highs at X tons per ha in 2013; however, from 2014 to 2021, the yield failed to regain momentum. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2021, the grain harvested area in Saudi Arabia was estimated at X ha, standing approx. at 2020 figures. In general, the harvested area, however, recorded a perceptible slump. The growth pace was the most rapid in 2014 with an increase of 23%. The grain harvested area peaked at X ha in 2012; however, from 2013 to 2021, the harvested area stood at a somewhat lower figure.

Grain Exports

Exports from Saudi Arabia

In 2021, approx. X tons of cereal grains were exported from Saudi Arabia; shrinking by -22.4% compared with 2020. Over the period under review, exports faced a deep downturn. The growth pace was the most rapid in 2016 when exports increased by 481%. Over the period under review, the exports reached the maximum at X tons in 2013; however, from 2014 to 2021, the exports failed to regain momentum.

In value terms, grain exports reduced notably to $X in 2021. In general, exports saw a abrupt decline. The pace of growth appeared the most rapid in 2016 when exports increased by 232% against the previous year. The exports peaked at $X in 2013; however, from 2014 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

India (X tons), Sudan (X tons) and Yemen (X tons) were the main destinations of grain exports from Saudi Arabia.

From 2012 to 2020, the biggest increases were in Benin (with a CAGR of +166.3%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, India ($X) emerged as the key foreign market for grain exports from Saudi Arabia, comprising 150% of total exports. The second position in the ranking was taken by Bahrain ($X), with a 72% share of total exports. It was followed by Sudan, with a 28% share.

From 2012 to 2020, the average annual rate of growth in terms of value to India totaled +10.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: Bahrain (+2.8% per year) and Sudan (-3.7% per year).

Export Prices by Country

In 2020, the average grain export price amounted to $X per ton, shrinking by -4.9% against the previous year. Overall, the export price saw a perceptible decrease. The pace of growth appeared the most rapid in 2015 when the average export price increased by 77%. As a result, the export price attained the peak level of $X per ton. From 2016 to 2020, the the average export prices failed to regain momentum.

There were significant differences in the average prices for the major overseas markets. In 2020, the country with the highest price was Bahrain ($X per ton), while the average price for exports to Benin ($X per ton) was amongst the lowest.

From 2012 to 2020, the most notable rate of growth in terms of prices was recorded for supplies to Comoros (+75.8%), while the prices for the other major destinations experienced more modest paces of growth.

Grain Imports

Imports into Saudi Arabia

In 2021, approx. X tons of cereal grains were imported into Saudi Arabia; dropping by -4.9% compared with 2020 figures. Over the period under review, imports continue to indicate a drastic downturn. The most prominent rate of growth was recorded in 2013 when imports increased by 18% against the previous year. Imports peaked at X tons in 2017; however, from 2018 to 2021, imports stood at a somewhat lower figure.

In value terms, grain imports reduced modestly to $X in 2021. Overall, imports recorded a abrupt curtailment. The pace of growth was the most pronounced in 2013 with an increase of 20% against the previous year. As a result, imports reached the peak of $X. From 2014 to 2021, the growth of imports failed to regain momentum.

Imports by Country

Argentina (X tons), Russia (X tons) and the United States (X tons) were the main suppliers of grain imports to Saudi Arabia, with a combined 55% share of total imports. These countries were followed by Brazil, Poland, Lithuania, Ukraine, Romania, Germany, France, Australia, Hungary and Latvia, which together accounted for a further 41%.

From 2012 to 2020, the biggest increases were in Hungary (with a CAGR of +29.0%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, Argentina ($X), Russia ($X) and the United States ($X) appeared to be the largest grain suppliers to Saudi Arabia, with a combined 53% share of total imports. These countries were followed by Brazil, Poland, Lithuania, Ukraine, Romania, Germany, France, Australia, Hungary and Latvia, which together accounted for a further 41%.

Among the main suppliers, Hungary, with a CAGR of +23.6%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

The average grain import price stood at $X per ton in 2020, reducing by -4.3% against the previous year. Over the period under review, the import price saw a pronounced decrease. The pace of growth was the most pronounced in 2018 an increase of 15% against the previous year. Over the period under review, average import prices hit record highs at $X per ton in 2013; however, from 2014 to 2020, import prices failed to regain momentum.

Average prices varied somewhat amongst the major supplying countries. In 2020, the countries with the highest prices were Poland ($X per ton) and Latvia ($X per ton), while the price for Brazil ($X per ton) and Russia ($X per ton) were amongst the lowest.

From 2012 to 2020, the most notable rate of growth in terms of prices was attained by Brazil (-3.3%), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Market Intelligence Platform