Saudi Arabia's corn production forecast to increase 7.6% to 182,900 tonnes by 2015/2016, report says; chicken production to grow 12.7% to 666,900 tonnes; milk consumption to rise 18.7% to 1.9 million tonnes by 2016

DUBLIN , March 16, 2012 (press release) – Research and Markets has announced the addition of the "Saudi Arabia Agribusiness Report Q2 2012" report to their offering. The decision by Saudi Arabia to phase out its water intensive crops has continued to push the government towards increases in the domestic grains storage capacity and land purchases in foreign countries. For livestock, we forecast poultry production growth to be subdued in 2012 because of stagnating incomes on the back of a gloomy global economy, but we believe government support will help boost production over the coming years. Similar public investment in the dairy industry should not have an impact on production growth before some years.

Key Forecasts

Corn production growth to 2015/16: 7.6% to 182,900 tonnes. Much of this production will come on a subsistence level and the country will remain a massive net corn importer over the medium term.

Milk consumption growth to 2016: 18.7% to 1.9mn tonnes. Rising disposable income and increasing health-consciousness remain the key drivers behind dairy industry growth.

Chicken production growth to 2015/16: 12.7% to 666,900 tonnes. This will come on the back of government support programs through which it started subsidising producers to help them construct cold stores and buy refrigerated trucks and farm packaging equipment in an effort towards modernisation.

2012 real GDP growth: 4.0% average, down from 7.2% in 2011. Predicted to average 4.1% from 2011 to 2016.

2012 consumer price inflation: 4.9% average, down from 5.0% 2011.

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