The study points out the unsuitability of Saudi Arabia’s climate for agriculture and the fact that the country can’t meet the food needs of its increasing population and is reliant on food imports. Live animals and food, to the tune of around US billion (about R57 billion), are imported annually and only some 2% of the land is cultivated.
Gert van Rensburg, a senior agricultural economist at DAFF’s trade directorate, said, “Although these factors indicate Saudi Arabia is an excellent export destination for South African maize, no decisions on actual exports have been taken as yet. Potential exporters can make use of the Department of Trade and Industry’s export facilities”. Fanie van Zyl, Grain SA executive member and farmer in the North West’s Makwassie district, said these possibilities need to be pursued as a matter of urgency.
“Government, with perhaps the exception of the agriculture minister, finds itself in a very comfortable position. An oversupply of maize means an abundant supply of relatively cheap food. But the decline of commercial maize production will seriously hamper food security in the long run,” he explained. “I’m heartened by any export possibilities given that even our traditional export destinations in Africa are on the decline due to increasing self-sufficiency.”
With water resources for agriculture under pressure, the Saudi government is trying to phase out wheat production by 2016 and plans to focus more on higher value crops, such as fruit and vegetables, according to DAFF’s study. It’s estimated that Saudi consumers’ expenditure on food, drink and tobacco will increase from US,4 billion (about R237 billion) in 2008 to around US,4 billion (about R330 billion) in 2013.
The study identified 43 potential South African export products to Saudi Arabia, including cream, cheese and coffee. But maize is seen to have the biggest export potential. John Rankin, Grain SA executive member from Lichtenburg, said countries like Saudi Arabia, Egypt and the United Arab Emirates aren’t prepared to import maize through the private sector. Instead, they usually insist on bilateral export agreements between governments. “I therefore call on the South African government to act expeditiously,” he said. “We can’t afford to let such opportunities slip through our fingers.”
