World Grain - May 2008 - 13

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Saudi Arabia to become
reliant on wheat imports
RIYAD, SAUDI ARABIA - Twenty-five
years after beginning a grain self-sufficiency
plan, Saudi Arabia announced in April that it
will start importing wheat at the beginning
of 2009. Saudi officials said the plan became
untenable because it threatened to exhaust
the country's scarce water supplies.

Saudi Arabia said that through 2007, domestic wheat demand was largely met by
local production; however, Saudi Arabia is
expected to become fully reliant on wheat
imports by 2015 by gradually cutting back
on wheat purchases from local farmers.
The grain self-sufficiency program was designed to improve food security by reducing
the kingdom's food gap. However, amid concerns of declining underground water reserves
and higher water consumption resulting from
a rapidly growing population, Saudi Arabia is
looking to conserve precious water resources
by cutting back on local agriculture.
At its peak, Saudi Arabia's wheat industry
consumed some 40% of water earmarked for
agriculture in the desert kingdom.

A/S Trigon Agri acquires two
grain elevators in the Ukraine
STOCKHOLM, SWEDEN - A/S Trigon
Agri, an integrated cereal and dairy commodities company with operations in
Ukraine, Russia and Estonia, announced
on March 31 that it has completed the
acquisition of the controlling interest in
OJSC Novomirgorodsky Elevator and
OJSC Yavkinskiy Elevator. The elevators
were purchased from the Kiev, Ukrainebased Ramburs Group.
Both elevators are connected to the national railway infrastructure and are well
positioned to service the operational area
of the Kirovograd cluster. The Novomirgorodsky Elevator has a total storage
capacity of 129,000 tonnes, while the
Yavkinskiy Elevator has a total storage capacity of 45,600 tonnes.
Following the completion of these two
acquisitions, A/S Trigon Agri group said
it now owns five grain storage elevators in
the Ukraine with a total combined capacity
of 322,000 tonnes.

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