Saudi Arabia Animal Feed Market

Saudi Arabia Animal Feed Market Overview

Animal feed is an essential source of nutrients for the healthy diet of livestock. It provides better growth and livelihood to animals. Saudi Arabia is fastest-growing country in the animal feed market across the Middle east region. As per the World Bank, the livestock production index increased from 105.65 in 2017 to 109.56 in 2018.

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Major Saudi Arabia Animal Feed Market Drivers

Animal Feed Market in Saudi Arabia is driven by the rising government initiatives to support local producers, growing consumption of raw and processed meat and the increasing demand for highly nutritious animal feed. In addition to this, the Saudi government is providing import subsidies for 31 livestock feed ingredients such as Distillers dried grains with solubles and corn gluten feed to reduce the production cost of livestock products including poultry meat, dairy, table eggs, among others in 2019. The Saudi government introduced various agencies such as Grain Silos and Flour Mills Organization and Saudi Food and Drug Authority (SFDA) for animal feed ingredients to support nationwide growth, further boosting the Saudi Arabia animal feed market. Saudi Food and Drug Authority is responsible for establishing regulation, licensing and standards concerning processed, unprocessed animal feed products. The agency is also responsible for food safety regulations and labeling requirements for imported and locally produced food and feed products.

ARASCO is the largest animal feed processor which manufactures various livestock feed, poultry feed and aqua feed in Saudi Arabia. The annual production capacity of ARASCO is 4 million metric tonnes per annum. In 2020, the company sold its wafi brand feed for 20% lower than the price of barley to support livestock producers to feed Wafi.

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Ingredient – Segment Analysis

High Price of Barley is creating demand for corn in Saudi Arabia animal feed market. Saudi Arabia Grain Organization encouraged livestock producers to reduce barley consumption will create opportunities for Corn in Saudi Arabia animal feed market. In addition, ARASCO reduced 20% selling price compared to barley will increase the demand for corn and reduce the demand for feed barley. Corn imports are projected to reach 4.4 million metric tonnes for marketing year (MY2018/19), 11 percent higher than MY2017/18 imports due to the growing demand by animal feed processors in Saudi Arabia.

Livestock – Segment Analysis

The poultry segment is projected to increase in the coming years in the Saudi Arabia market due to the increasing consumption of poultry meat compared to other animal protein alternatives. As per the OECD, poultry meat consumption is 1,373.8 thousand tonnes in 2020 is increased compared to 2019. Furthermore, poultry meat consumption is expected to reach 1,543.8 thousand tonnes by 2029. Saudi government assists domestic poultry farms in increasing local chicken meat production and targeting more than 60 percent of consumption by 2020 end. The cost of chicken meat production is high in Saudi Arabia due to high dependence on imported feed, equipment and vaccines. The government provides production support to poultry producers such as interest-free loans and rebates on purchasing certain poultry equipment.

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