SAGO to Buy 355,000 Tons of Wheat Produced by Saudi Investors Abroad

Business

February 23rd, 11:25am

Riyadh - Asharq Al-Awsat

The completion of the process of purchasing wheat from several countries for the second half of 2021 (Asharq Al-Awsat)

The Saudi Grains Organization (SAGO) announced on Monday completing procedures for purchasing 355,000 tons of wheat from Saudi companies investing abroad. The purchase represents around 10% of the Kingdom’s annual consumption of wheat. Environment, Water and Agriculture Minister Abdulrahman Al-Fadhli, who is also the chairman of the SAGO’s board of directors, said that the amount of wheat will be supplied by Saudi Agricultural and Livestock Investment Company (SALIC). SALIC, owned by the Saudi Public Investment Fund (PIF), will supply the wheat through its investments in countries of comparative advantage in the field of grain agriculture. Al-Fadhli said the method offers a “quantum leap for the company.” He stated that the Foreign Agricultural Investment Program represents one of the Kingdom's food security strategy programs, which aims to diversify and increase sources of foreign food supplies, urging Saudi investors to apply for this program to ensure the participation of the largest possible number of Saudi investors. SAGO Governor Ahmed bin Abdul Aziz Al-Faris said the initiative has been introduced to support Saudi companies. He stated that the amount specified in the tender will be supplied during the period of May-December 2021, adding that it will be distributed to the Kingdom’s ports, including Jeddah Islamic Port, King Abdulaziz Port in Dammam, Jizan Port, and Yanbu Commercial Port. The 355,000 tons of wheat will be bought at an average price of $330.04 per ton from Saudi Arabian-owned farms in Australia, Canada and Ukraine for delivery from May to December 2021. SAGO is one of the leading national institutions with a prominent role in achieving economic development and fulfilling the needs of citizens by providing key food commodities in Saudi Arabia. Last September, a ship carrying around 60,000 tons of wheat from the Republic of Ukraine reached the Jeddah Islamic port. The wheat shipment, which was received by a number of SALIC officials and SAGO, departed from the Ukrainian city of Odessa through The Continental Farmers company owned by SALIC who seeks to supply the Kingdom with more wheat and grains through its multiple investments in Ukraine, Australia, and Canada.

from Asharq AL-awsat https://english.aawsat.com/home/article/2823036/sago-buy-355000-tons-wheat-produced-saudi-investors-abroad