Riyadh – International companies are competing to win a Saudi import deal on 1.5 million tons of barley, as the fourth cycle of quotations for 2017 takes place. Over 20 companies have placed bids aiming to cover local demand for barley and to maintain strategic stocks.
Saudi Arabia’s main state wheat buying agency, the Saudi Grains Organization (SAGO), said on Thursday it has issued an international tender to purchase 1.5 million tons of animal feed barely.
The tender deadline is July 21, it said.
According to information obtained by Asharq Al-Awsat, the 20 international companies competing for the new Saudi tender are companies specialized in grain trade. The demand will be divided among 25 vessels.
The barley is sought from global suppliers for arrival in Saudi Arabia in September and October, SAGO Chief Ahmad Al Fares said.
The tender seeks 25 individual consignments of 60,000 tons. The consignments can be offered by trading houses up to 10 percent larger or smaller than that, SAGO said.
Some 1.08 million tons will be distributed between Saudi Arabia’s Red Sea ports and 420,000 tons will be shipped to its Gulf ports.
SAGO, previously known as the General Silos and Flour Mills Organization (GSFMO), was assigned the task of securing feed barley imports for Saudi Arabia in autumn 2016.
Saudi Arabia is one of the world’s largest importers of barley.
SAGO manages national silos and development, in addition to the tasks of regulating mills production activities.
It is considered one of the leading national institutions with a prominent role in achieving Saudi economic development. The organization was established by a royal decree in 1972.
SAGO functions within the government-prepared framework to provide all means of development and progress.
Among the main objectives under which SAGO works are the establishment and operation of flour mills, flour production and animal feed factories.
Establishing food industries related or complementary to the SAGO products, marketing the products inside the Kingdom and purchasing grains and maintaining an appropriate reserve stock to face emergency circumstances are all part of the organization’s day-to-day missions.
Achieving the political-agricultural policy adopted by the government is also one of SAGO’s key undertakings.