2009-10-29 17:51:04 -

Research and Markets ( www.researchandmarkets.com/research/e23b25/saudi_arabia_agrib : ) has announced the addition of the " Saudi Arabia Agribusiness Report Q2 2009 : " report to their offering.

This Saudi Arabia Agribusiness service provides proprietary medium term price forecasts for key commodities, including corn, wheat, rice, sugar, cocoa, coffee, soy and milk; in addition to newly-researched competitive intelligence on leading agribusiness producers, traders and suppliers; in-depth analysis of latest industry developments; and essential industry context on Saudi Arabia's agribusiness service.

Food security remains a salient issue to a nation with possibly the fastest expanding population in the Middle East. Possessing just 1% arable farmland, and with limited water supplies, the pressure to attain self-sufficiency in a variety of staple crops is a

theme that has played out for decades. In this Saudi Arabia Agribusiness Report for Q209, we look at how this particular dynamic has been affected by global economic depression and the implications for the industry through to 2013.
Included in this outlook is the new Business Environment Overview, which provides concise analysis of the wider fundamentals affecting the local agricultural sector.

The burgeoning Saudi population is expected by many economists to reach 40mn within the next 15 years, which would heap added pressure on already stretched water resources. Indeed, massive irrigation and water sustainability projects undertaken in the 1990s enabled the kingdom to become self-sufficient in wheat production; even producing surpluses for export. However, the problem of depleted non-renewable water sources conjoined with diminishing oil revenues has weighed heavily on the government. Consequently, the futility of achieving domestic-based grains self-sufficiency resulted in high levels of government support being withdrawn (which also coincided with the kingdom's WTO entry in 2005). Thereafter, the country became a net wheat importer, underlining the inefficiency of the industry under relatively normal conditions.

However, as is the recent trend for cash-rich resource poor nations - particularly those from the Middle East, and especially Gulf Co-operation Council (GCC) states - Saudi state and private enterprises, encouraged by the government, have been rushing to buy thousands of acres of high-potential farmland in a host of developing countries. The Saudi government stated its aims in 2008 to offset volatile food prices by boosting domestic and global agricultural productivity through a mix of public and private investment. The local cabinet recently approved the establishment of a US$5.3bn agricultural development fund, which will support the industry through the provision of soft loans and favourable credit lines, enabling private businesspeople to invest. In addition, domestic water facilities are to be improved in order to enhance cereals production.

Efforts made by King Abdullah to ensure long-term domestic food security appears to be paying dividends; in a deal that took place in early 2009, Hail Agricultural Development Company (Hadco), a privately owned local business, acquired 9,239 hectares of Sudanese farmland in a deal worth US$45.3mn. The kingdom also received its first batch of rice produced overseas during the same period, while local representatives have visited a host of countries, including Ethiopia, Turkey, Ukraine and the Philippines attempting to secure the rights to crop acreage that would do much to improve the domestic outlook.

We predict that consumption growth will be exhibited in virtually every staple category during the course of the forecast period. Robust population expansion and stable GDP growth are forecast to be major contributors to such figures. Dairy demand will remain particularly strong, continuing the upward trajectory of the previous period, with all accept cheese posting double-digit growth between 2009 and 2013. On the supply side, a few notable exceptions to a generally negative outlook can be found in milk, butter and poultry production where we foresee output growth of 10.27%, 31.08% and 5.32% respectively; yet in the bigger picture the lion's share of domestic consumption will be increasingly met through imports.


Key Topics Covered:

- Executive Summary
- SWOT Analysis
- Industry Business Environment Overview
- Economic Outlook
- Sub-sector Supply & Demand Analysis
- Commodity Price Forecasts
- Competitive Landscape
- Special Focus - Saudi's Agri-Investment Pursuit Relentless
- Forecast Modelling


For more information visit www.researchandmarkets.com/research/e23b25/saudi_arabia_agrib :



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