Agriculture Production in Saudi Arabia is diminishing and country will face a food shortfall after 2016. Agriculture production growth was tremendous in 1980's and 1990’s. Saudi Arabia amended its policies in 1980’s and became fifth largest Wheat producer in the world. Saudi increased production of all the crops till 1990's until they became a steady and continuous producer of cereals. Saudi Arabia became one of the world's leading producer of wheat, utilized most of their ground water resources for production and now going to become a net importer of wheat, barley and other cereals from 2016.
By using advanced technologies Saudi Arabia was able to increase their agriculture production up to a certain level but has to decrease production because of future water demands. They have used Variable Rate Integration (VRI) system and Wireless Sensor Network (WSN) to increase production. Saudi Arabia has successfully achieved a significant cereal production till 2007 and then started decreasing it and want to stop its cereal production by 2016. Maize and Millet were exempted from this because of their poultry applications and Saudi Arabia only reduced the production buy didn't aim to stop it completely.
Agriculture production was increased in Saudi Arabia and they have successfully reached the Wheat harvesting area from XXX thousand hectares producing XXX (1000 MT) of Wheat in 2000 to XXX thousand hectares producing XXX (1000 MT) of Wheat in 2004. Due to the policy change in 2008, Saudi Arabia started reducing its agriculture production by XX.XX% annually and will reduce it to Zero (0) till 2016. This policy was a drastic shift from Saudi Arabia policy of becoming self-sufficient in production which was pursued in 1990's.
Consumption of all the crops are increasing except Sorghum. Increase in population is a trigger for increase in consumption of Wheat. Barley is very well known for its positive effects on health, whereas Maize and Millet are used for animal feed. With the increase in poultry industry, consumption of these crops are also increasing.
Import of crops like Wheat, Barley, Millet and Maize are going to increase as the production of these crops is reduced. Increase in consumption is a trigger for increase in imports of these crops. Sorghum import is Zero (0) as of now and there is no opportunity in future for Sorghum as the consumption is also reduced and Saudi Arabia is producing enough crop to fulfill local demands.
Saudi Arabian Agriculture Market is developing due to Increase in consumption, advanced technologies, low water requirement in Horticulture process and increasing tourism (especially at the time of Holy festival of Ramadan). Government Initiatives also helped agriculture market, which is reversed now. Saudi Arabia is the world’s biggest Desalination (converting Saline water to Potable Water) country, which helped the country to increase production for almost two decades.
Recently Saudi Arabia government announced that, they are going to stop its agriculture production from 2016, which is a major drawback for the agriculture market. From 2016, Saudi Arabia will be dependent on agriculture import. India and other Asian countries have a high scope in exports to Saudi Arabia.
What the report offers:
The study identifies the situation of Saudi Arabia, and predicts the growth of its agriculture market. Report talks about Agriculture production, consumption, import and export with prices and market trends, Government regulations, growth forecast, major companies, upcoming companies & projects, etc. Report will talk about Economic conditions of and future forecast of its current economic scenario and effect of its current policy changes in to its economy, reasons and implications on its growth. The study clarifies that, currently, the Saudi Arabia agriculture import growth is high as compared to the neighboring GCC nations and it is set to surpass all the Middle East nations by 2020, which is expected to grow at an expected CAGR of XX.XX% from 2014 to 2020. Lastly, the report is divided by major import & export and importing and exporting partners.