Saudi Arabia’s Grain Corporation to Become General Food Security Authority

In July 2021, Saudi Arabia completed the final stage of the flour milling sector privatization. (Asharq Al-Awsat)
In July 2021, Saudi Arabia completed the final stage of the flour milling sector privatization. (Asharq Al-Awsat)
TT
20

Saudi Arabia’s Grain Corporation to Become General Food Security Authority

In July 2021, Saudi Arabia completed the final stage of the flour milling sector privatization. (Asharq Al-Awsat)
In July 2021, Saudi Arabia completed the final stage of the flour milling sector privatization. (Asharq Al-Awsat)

The Saudi Council of Ministers decided to transform the Saudi Grains Organization (SAGO) into the General Food Security Authority (GFSA), and approved the draft organizational arrangements for the entity.

The move came to confirm the government’s keenness to maintain the security of the food sector, in light of the recent challenges caused by the Russian-Ukrainian crisis, which impacted prices of food and commodities.

SAGO is considered one of the first sectors targeted by the Saudi government’s privatization program. In July 2021, the National Center for Privatization announced the sale of the second and fourth mill companies, the final stage of the process of privatizing the flour production sector.

The award of each milling company was decided based on the highest financial bids submitted by qualified strategic investors.

Since the beginning of the global food crisis, the Saudi government has taken measures to ensure the availability of basic commodities.

Last year, Custodian of the Two Holy Mosques King Salman bin Abdulaziz issued a directive approving the allocation of 20 billion riyals ($5.3 billion) to address the repercussions of rising global prices, including 10 billion ($2.6 billion) for beneficiaries of social security and the Citizen’s Account program.

Crown Prince Mohammad bin Salman bin Abdulaziz has also emphasized the necessity to help the most needy citizens in the face of the rise in prices, during his presidency of the meeting of the Council of Economic and Development Affairs at As-Salam Palace in Jeddah last year.

The Crown Prince underlined the important role of the relevant ministries and government agencies in monitoring developments regarding supply chains, product abundance and price levels, as well as protecting and encouraging fair competition, and combating and preventing monopoly that affects legitimate competition and the interest of the consumer.



Egypt Targets 10 mln Ton Wheat Harvest

A farmer shows wheat plants at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. REUTERS/Mohamed Abd El Ghany/File Photo
A farmer shows wheat plants at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. REUTERS/Mohamed Abd El Ghany/File Photo
TT
20

Egypt Targets 10 mln Ton Wheat Harvest

A farmer shows wheat plants at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. REUTERS/Mohamed Abd El Ghany/File Photo
A farmer shows wheat plants at a field in Al Fayoum Governorate, southwest of Cairo, Egypt March 21, 2024. REUTERS/Mohamed Abd El Ghany/File Photo

Egypt expects to harvest 10 million tonnes of wheat this year, up from 9 million in 2023, driven by improved crop yields and ambitious land reclamation efforts, Agriculture Minister Alaa Farouk told Reuters late on Wednesday.

He said 3.1175 million feddans (about 1.30 million hectares) have been cultivated this season — slightly lower than the 3.5 million feddans announced earlier by the planning ministry and 3.2 million feddans in 2024 (1.34 million hectares), suggesting a possible decline in total wheat area.

Farmers have told Reuters that wheat has become less profitable compared to crops like beet, whose area increased from 500,000 feddans (210,000 hectares) to 700,000 feddans (294,000 hectares) this year.

The government plans to buy 4-5 million tonnes of local wheat and import about 6 million tonnes to provide heavily subsidised bread for over 69 million Egyptians.

Farouk said newer high-yield wheat strains developed by the Agricultural Research Center have raised productivity by 7-8.5%.

"This is vertical expansion, and horizontal expansion is coming," he said.

That horizontal expansion is led by the Mostakbal Misr for Sustainable Development, which plans to reclaim 4 million feddans across the country.

Farouk said some of that land is ready for production and the rest will follow in the next two years, offering major opportunities for agricultural investment.

Mostakbal Misr, recently tasked with wheat imports, is also developing infrastructure and growing crops tailored to local consumption, exports and agri-processing, Farouk said..

Farouk added the government is studying a potential rise in local fertilizer prices. Urea and nitrate fertilizers cost around 9,500 Egyptian pounds ($185) per tonne to produce but are sold at a subsidized 4,500 ($87.63). Export prices reach up to 20,000 pounds ($389.48), Farouk said.