RIYADH: In a major move to address food security concerns and to cover a shortfall in wheat supplies, Saudi Arabia has announced plans to import three million tons of wheat a year by 2016.

Grain Silos and Flour Mills Organization (GSFMO) said on Sunday that the Kingdom has been phasing out wheat cultivation since last year and that government subsidies are also being slowly withdrawn to eventually fully wrap up production. “The Kingdom has imported 2.2 million tons of wheat since it started the wheat production phase-out program in September 2008,” said Waleed Al-Khariji, GSFMO’s director general.

“By 2016, we will import three million tons of wheat per year,” added Al-Khariji, while inaugurating a seminar jointly attended by GSFMO officials, delegates from other Saudi companies and a delegation from the US Wheat Associates (USW) here.

Working on behalf of US wheat producers, the USW delegation were at GSFMO to deliver a presentation about the quality of American wheat and the potential for exports to Saudi Arabia. USW, which maintains offices strategically located around the world to help wheat buyers and millers as well as government officials understand the quality, value, and reliability of US wheat, also delivered a presentation.

USW regional vice president, said USW works directly with overseas buyers to answer questions and resolve issues in purchasing, shipping or using American wheat. “The USW delegation was here to provide education and information that helps strengthen milling, storage, handling, and end-product industries in countries like Saudi Arabia,” he added. USW, he said, also provides consulting in milling, baking, cracker production, pasta and noodle production, grain storage and handling.

The Kingdom aims to rely entirely on imports by 2016. Asked about the target of wheat imports for next year, Abulrahman bin Saleh Al-Ruwatie, GSFMO assistant general manager, said, “We will import two million tons of wheat next year, and this quantity will be purchased in staggered schedule depending on the world market.”

He added that it is “very important to choose the right time in the world market to purchase the best quality wheat at cheaper prices.”

He pointed out that about 25 companies participated in the last tender for wheat exports. “A wide range of origins competed in the wheat purchase tender that was won by a Canadian company,” said Al-Ruwatie. The Kingdom launched the tender to buy 550,000 tons of any-origin wheat for delivery between December 2009 and February 2010. With this quantity, total wheat imports by the Kingdom will exceed 1.9 million tons until the end of the current year, he added.

The Kingdom, with some 26 million consumers, requires 2.6 million tons of wheat annually, said another GSFMO official. The goal of the GSFMO is to constantly have stocks that will be large enough to cover a minimum of four months of needs and a maximum of six months. GSFMO officials also said that the Kingdom would set up four new mills in Madina, Hail, Riyadh and Al-Jouf at a cost exceeding SR600 million with a total capacity of processing 2,500 tons of grains per day. “We have other mills in Makkah, Jizan, Al-Kharj and Al-Hasa all under tenders,” said another official.