Saudi Arabia is set to import 7 million-7.5 million metric tons of barley this year and is looking at long-term deals with major grain exporter Ukraine, Saudi Finance Minister Ibrahim Al-Assaf told reporters on the sidelines of a meeting of Arab finance ministers in Abu Dhabi Wednesday, adding he expected the Kingdom's barley imports to be around that level in 2011. “We import around 7 to 7.5 million tons of barley as feed for animals,” Al-Assaf said. While Saudi wheat supplies are managed by the state-run Grain Silos and Flour Mills Organization (GSFMO), the main animal feed barley is still privately imported. Saudi Arabia accounts for around half of the global total, with imports in the 12 months to July 2010 amounting to 7.7 million tons, according to official statistics. Ukraine harvested 8.5 million tons of barley in 2010. The government capped profits for barley importers last year after a surge in barley prices due to poor harvests in Russia and Ukraine drove a sharp rise in red meat prices in Saudi Arabia. Riyadh is now looking at long-term contracts and agricultural investments in Ukraine to ensure the world's biggest crude oil exporter gets the grains it needs to feed a growing population for years to come. “The government has decided a few months back on new arrangements for management, including the imports of barley,” he said. “With Ukraine, we discussed extensively the cooperation between Ukraine and Saudi Arabia, with regard not only to barley but also on grains in general,” he said. “We look at Ukraine as one of the destinations for investments in agriculture.” Separately, Al-Assaf pointed to risks to its exports Wednesday should the financial crisis in Europe lead to slower economic growth, although it may also present opportunities for its oil
