South Perth, Western Australia
October 18, 2011
Western Australian lupin producers have access to a new Middle Eastern market following the inclusion of lupins to Saudi Arabia’s animal feed subsidy list.
The Saudi Government has decreed lupins will now feature on the subsidy list alongside other high protein, energy rich animal feeds.
Department of Agriculture and Food executive director for grains industries Peter Metcalfe said the development had now made lupins a competitive import option for Saudi Arabia.
“Having lupins added to the subsidy list has effectively opened up a new export market for Western Australian lupin producers,” he said. “WA is a major exporter of lupins, accounting for more than 80 per cent of the world’s lupin exports.
“The potential market for lupins in Saudi Arabia is up to 100,000 tonne per annum.”
The development follows a recent visit to Perth by Saudi Acting Deputy Minister for Economic Affairs, Dr Sulaiman M. Al-Turki where he met with CBH Group and State Government representatives.
It also follows ongoing grain trade discussions with the State Government, including a visit by Agriculture and Food Minister Redman to Saudi Arabia in 2009.
The subsidy program was introduced several years ago in line with the Saudi Ministry of Agriculture’s National Animal Feed Strategic Plan, which bases government subsidy levels on a feed ingredient’s nutritional value, mainly energy and protein contents. Under the program, the Saudi Government provide discounts for listed feed imports.
Department director for trade development Simon Johnson said the addition of lupins to the subsidy list was the result of continued work by the WA Government and industry with the Saudi Government and private feed mills.
“In particular, CBH Group and Mr Pankaj Savara at the Western Australian trade office have been critical in these negotiations,” he said.
“The Middle East is becoming an increasingly important trade region for Western Australian grain growers. The department is working with other organisations to continue developing markets in this region.”
Last year, WA sent its first shipment of wheat to Saudi Arabia in more than 20 years, after its sole importer changed its tender specifications to allow WA wheat to be imported into the country.