The Saudi Arabian government announced a decision to decrease import subsidies on barley, feed corn (maize) and other animal feed ingredients in response to declining world grain and feed prices, the U.S. Department of Agriculture’s (USDA) Foreign Agricultural Service (FAS) recently said. According to the new decree, the import subsidy on barley was reduced from $320 to $200 per tonne.

 

Saudi Arabia imports approximately seven million tonnes of barley annually. This represents approximately 50% of all the world’s feed barley exports. It is the leading feed grain in Saudi Arabia the FAS said.

 

In March 2008, the Saudi government increased its barley import subsidy from $186.67 to $320 per tonne after traditional livestock farmers complained that they were unable to feed their herds as a result of the drastic increase in the world barley import prices. The government’s increased subsidy assistance reduced the barley retail price by more than 50%, and increased barley imports by 110% for the third quarter of 2008, over the same period a year earlier.

 

The FAS noted that barley is the preferred animal feed for local Bedouins, and approximately 80% of imported barley is used in feeding their sheep, camels and goats, especially when pasture conditions are poor and barley prices are lower than alternative feed.

 

 

 

World Grain