JEDDAH: Saudi Arabia's state grains buyer has purchased 360,000 tons of wheat from the US and Europe as it looks to build strategic reserves, the Saudi Press Agency reported Sunday. The wheat will arrive in the Kingdom on six ships during September and October, with three going to Jeddah Islamic port and three to King Abdulaziz port in Dammam, SPA said. No pricing details were given. The Grains Silos and Flour Mills Organization (GSFMO) issued a tender Wednesday to buy 330,000 tons of wheat in six 55,000 tons consignments for arrival between Sept. 10-20, Oct. 1-10, and Oct. 20-30. Saudi Arabia expects about 2 million tons of wheat imports this year, unchanged from 2010, and aims to double its reserves to one year's consumption by 2014, its Minister of Agriculture said last week. The Kingdom, which has emerged as a major buyer of wheat, wants to build reserves of basic commodities such as wheat, rice, oils and sugar to protect itself against the impact of a spike in global food prices, and to support its rapidly growing population. The Kingdom currently has around 1.4 million tons of wheat reserves – the equivalent of six months – and will look to double that by 2014, Waleed El-Khereiji, Director General of GSFMO, said. The Kingdom is planning to phase out production of other water intensive crops including soy beans and animal fodder. Saudi Arabia continues to invest in farmland abroad as part of its strategy to secure food supplies.
