Saudi Arabia has modified its wheat import quality specifications that will allow imports from Australia, the world's fourth largest exporter of the grain, the Western Australian state government said on Friday. The changes - to allow lower protein levels and a small tolerance for ergot fungus - mean that wheat from Western Australia, the country's top grain exporting state, can take part in tenders issued by Saudi Arabia's Grains Silos and Flour Mills Organization (GSFMO), state Agriculture and Food Minister Terry Redman said. Australia has been unable to access the 2.5 million tons a year Saudi market as the Western Australian grain had lower protein levels than required and its grain was sometimes affected by ergot. Saudi Arabia opened its doors to wheat imports in 2008 when it introduced a new groundwater conservation policy to cut annual irrigated wheat production. Western Australian wheat is more competitive in Middle East market than wheat from eastern Australia, where some higher protein wheat is produced, but is largely sold in the domestic market or to regular Asian customers. Feedback from GSFMO indicated the organization was keen for Australia to become a regular supplier of wheat, he said in a statement. Western Australia is already a major supplier of barley to Saudi Arabia. The state produced 8 million tons of wheat in 2009/10, of which 90 percent is expected to be exported, provided sales can be made. Australia, which harvested 21.7 million tons across the country in 2009/10, is struggling to win wheat export orders as a strong Australia dollar, now trading above 92.5 US cents, is making the country's grain uncompetitive on world export markets. Saudi Arabia plans to stop growing wheat domestically by spring 2016, and import the grain instead, the U.S. Department of Agriculture said in a report in February. The nation's wheat- buying agency has approved the US, Argentina, the European Union and Australia as shippers, it said.
