Consumers and food importers here welcomed the Ministry of Commerce proposal to limit the responsibility of importing basic commodities to the government to control the spiraling prices of food items. “This move will result in standardization of prices in the retail market, thus easing the burden of consumers who are now shouldering the uncontrolled surge in prices of basic items by as much as 100 to 200 percent,” said Ranjit D'Silva, marketing manager of Al-Zamil Food Industries. He said that though merchants' profit margin will decline, the move is good for the consumers who have been suffering from high prices dictated by wholesalers and retailers. A big rice importer here in Eastern Province also approved of the government's importing the basic food items. But he cautioned that the government agency to be tasked with importing basic food items must have the expertise to deal with foreign suppliers. “Rice exporting countries, for example, have their own price ceiling, largely influenced by their internal factors. They are reflected in the export prices. These require knowledge which merchants have learned in years of dealing,” he said. Saudi Arabia will continue to be a net importer of food, a situation that will be difficult to reverse, according to the United States Department of Agriculture (USDA). The USDA conducted a study on the Kingdom's food production, prospects, and demand last September using the SWOT (strength, weaknesses, opportunities, and threats) analysis. The analysis cited a number of reasons why this country will remain a big importer of food for many years to come. The more than seven million expatriates that live and work in Saudi Arabia, mainly, Arabs, Filipinos, Asians, Africans and Westerners, create demand for greater diversity and ethnic foods. Seventy percent of all Saudis are under the age of 30 which shows the trend for increasing demand for food products. Ready to eat foods, home meal replacements, fast foods and “take-away” foods are increasingly popular with the young Saudi population Records of the Saudi Ports Authorities show that imports of food products have been increasing annually. During the last five years, starting 2006, the increasing trends of food imports are as follows: 15,049,030 metric tons in 2006, 16,111,292 tons in 2007, 18,592,345 tons in 2008, 18,618,436 tons in 2009, and 20,215,335 tons in 2010. In 2010, the biggest volume of food imports, amounting to 11,045,848 metric tons, was shipped at the Jeddah Islamic Port. Food imports through the other Saudi ports are as follows: 6,283,254 tons at the King Abdul Aziz Port in Dammam, 972,985 tons at the Yanbu Commercial Port, 804,214 tons at the Jubail Commercial Port, 560,358 tons at Jizan Port, 403,975 tons at King Fahad Industrial Port in Yanbu, and 144,701 tons at Diba Port.FACT FILEn Saudi consumers patronize new products and are shopping more in hypermarkets and supermarkets that are now all over the Kingdom. n Increase in the number of hypermarket and supermarket outlets across the Kingdom that offers ample opportunities to distribute high-value food products. n Saudi Arabia has a young and rapidly growing population, projected to reach 40 million in the next 20 years. This population growth will be a huge market for food products consumption in the years to come. n The potential for agricultural production in Saudi Arabia is limited and food imports will grow with the population. n Saudi Arabia has a high annual per capita income of about SR70,000 (2008 estimates) which continues to grow, thus increasing the purchasing power of Saudis. __
