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Food Price Inflation Continues to Dominate the Headlines in Saudi Arabia

Posted on: Tuesday, 16 September 2008, 09:00 CDT

Research and Markets (http://www.researchandmarkets.com/research/7842aa/saudi_arabia_food) has announced the addition of the "Saudi Arabia Food and Drink Report Q3 2008" report to their offering.

The Saudi Arabia Food Drink Report provides independent forecasts and competitive intelligence on Saudi Arabia's food and drink industry.

Food price inflation continues to dominate the headlines in Saudi Arabia, increasing the pressure on the government to take whatever actions necessary to keep prices down for consumers. In early April the government made the decision to cut customs tariffs by 15-20% on 180 products, including a variety of foodstuffs, building materials and consumer goods. The tariff on wheat was cut from 25% to zero, while dairy products, frozen chicken, vegetable oil, canned food and other products that were previously imported with a 20% tariff have had this cut to 5%. This was largely in response to inflation - barely an issue prior to the oil boom - reaching a 27-year high of 8.7% earlier this year.

Saudi Arabia has a major negative food and drink trade balance, as it is the largest importer of these products in the Gulf region. This trade balance has been the subject of significant government attention, as the oil-rich government has pumped millions of dollars into improving agricultural output. BMI believes that these efforts will begin to have an effect over the next five years, as we are forecasting growth of 102.4% in the value of Saudi's food and drink exports to 2012, with the majority of this revenue being generated from fellow GCC countries and by the country's more advanced dairy and beverage industries. This should help bring about a modest 5.5% reduction in imports. The country's hot and arid climate, however, will prevent any level of government investment revolutionising the agricultural industry entirely. As certain food and beverage-processing sectors grow, ingredients will need to be imported to meet demand, which means that the food and drink trade balance will remain negative. With Saudi Arabia currently awash with oil revenues, the government is continuing to develop the non-oil sector, which includes agriculture.

Key Topics Covered:

Executive Summary

Business Environment

Food

Drink

Agriculture At A Glance

Retail

Competitive Landscape

Appendix

Companies Mentioned:

-- Al Safi-Danone

-- Aujan

-- Masafi

-- Savola Group - Al Azazia Panda

-- Carrefour MAF - Saudi Arabia

-- A K Al Muhaidib and Sons Group - Giant Stores

For more information visit http://www.researchandmarkets.com/research/7842aa/saudi_arabia_food

Source: Business Wire

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