USDA noted an increase in Saudi Arabia’s wheat production

The U.S. Department of Agriculture in its January review raised its estimate of wheat harvest in Saudi Arabia in the current season (July 2023 – June 2024) to 1.2 million tons at once. This is double the forecast made in December.

The new forecast is also 1.9 times higher than last season’s production and 3.2 times the five-year average.

According to the Agriculture Ministry, the significant increase in the harvest is due to the policies of the country’s main food security authority, which offers local farmers high prices. In recent years, Saudi Arabia has increased purchase prices for locally grown wheat to encourage production and improve food security, the survey said. The wheat crop will continue to be strong in the coming years if prices remain high and competitive with alfalfa prices.

The area under wheat this season is estimated at 200,000 hectares, which is 3.3 times the previous estimate, the average for the last five years and twice the figure for last season. At the same time, the yield is estimated at 6 tons per hectare, which is 40% lower than the previous forecast. It is also 4% below last season and 2% below the five-year average.

Against the backdrop of higher domestic production, Saudi Arabia’s wheat import forecast has been lowered to 4.7 million tons from 4.9 million tons in the December survey (imports in the 2022/2023 crop year were 5.26 million tons). The carryover is expected to be 4.3 million tons (previous estimate was 4.05 million tons, 2022/2023 season figure. – 3.3 million tons).

Tags: Saudi Arabia, wheat, crop forecast