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SAGO to purchase wheat from overseas Saudi investments

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Dry Bulk,

Saudi Grains Organization (SAGO) has announced that it has completed procedures to purchase 355 000 t of wheat from Saudi companies investing abroad within the framework of SAGO’s recent invitation to Saudi investors abroad to supply about 10% of the Kingdom’s total annual consumption, in implementation of the Council of Ministers’ Resolution issued in this regard.

His Excellency the Minister of Environment, Water and Agriculture and SAGO’s Board Chairman, Eng. Abdulrahman bin Abdulmohsen AlFadley, stated that the specified amount was awarded to the Saudi Agricultural and Livestock Investment Company (SALIC), which is wholly-owned by the Public Investment Fund (PIF), through the company’s investments in many countries of comparative advantages in the field of grain cultivation, representing a qualitative leap for the company. v

H.E. added that the purchase comes within the State’s direction to benefit from the Saudi investment abroad and support companies investing in countries that offer competitive advantages for cultivating food commodities imported by the Kingdom, primarily wheat.

H.E. concluded his statement by pointing out that the agricultural investment program is one of the Kingdom’s Food Security Strategy programmes, which aims to diversify and increase the foreign food supplies. H.E. also encouraged Saudi investors to apply for qualification within the programme to ensure the participation of the largest possible number of investors.

For his part, H.E. Eng. Ahmad A. Al-Fares, Governor of SAGO, stated that the specified amount will be supplied during the period of May - December 2021, according to the approved quality specifications for imported wheat in order to maintain the quality of the wheat imported by SAGO. H.E. also pointed out that the shipments will be received in SAGO’s plants at various Kingdom’s ports: Jeddah Islamic Port, King Abdulaziz port in Dammam, Jizan port, and Yanbu Commercial Port.

H. E. said that SAGO has succeeded in diversifying the sources of wheat, as the organisation aims to purchase a maximum of 1.5 million t of local wheat, in implementation of the Council of Ministers’ resolution regarding the regulations to stop the local cultivation of green fodder. SAGO’s resources include buying the wheat crop from farmers if they choose to grow wheat as an alternative to green fodder for a period of five years, and importing the rest of the Kingdom’s needs from international markets through tenders.

Read the article online at: https://www.drybulkmagazine.com/dry-bulk/23022021/sago-to-purchase-wheat-from-overseas-saudi-investments/

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