Saudi Arabia Alfalfa Hay Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.20 % |
Saudi Arabia Alfalfa Hay Market Analysis
The Saudi Arabia alfalfa market is expected to register a CAGR of 5.2% during the forecast period.
- Over the medium term, factors including rising demand for quality hay for livestock and dairy production, prices of alfalfa hay, and health benefits of alfalfa over other alternative feed are expected to drive the market growth in the coming years. Livestock products remain the desired food for nutritional value and taste across major parts of Saudi Arabia.
- The annual poultry meat production in Saudi Arabia was around 910 thousand metric tons in 2021, which grew by 13.7% from 2019. Hence, the market is expected to grow significantly in the country with the rising demand from the meat industry.
- However, the major restraints for this market are a ban on forage production and ecological factors such as scarce water resources in the country. In 2019, the Saudi Arabian government announced a ban on the cultivation of green fodder (forages) and replaced it with imported sources. This is expected to increase the demand for imported high-protein alfalfa but is expected to lead to a decrease in the area harvested for alfalfa.
Saudi Arabia Alfalfa Hay Market Trends
This section covers the major market trends shaping the Saudi Arabia Alfalfa Market according to our research experts:
Rising Demand for Quality Hay for Livestock and Dairy Production
- Livestock is a major factor responsible for the growth of the Saudi Arabian alfalfa market. Livestock products remain the desired food for nutritional value and taste across major parts of Saudi Arabia. Saudi farmers heavily rely on imported alfalfa hay to increase meat and dairy production. According to the Food and Agriculture Organization Corporate Statistical (FAOSTAT), the country's livestock population has risen over the past few years. The number of cattle and buffalo stocks was 700,000 heads in 2021, up from 567,040 in 2019.
- Additionally, the rising demand has witnessed a significant increase in meat production. In 2021, poultry meat led the production with 910,446 metric tons, up from 800.570 metric tons in 2029, it is followed by sheep and goat meat at 143,438 metric tons. Beef and buffalo meat production stood at 40,000 metric tons in 2021.
- Furthermore, according to the Ministry of Environment, Water, and Agriculture (MEWA), the Kingdom's domestic production reached a 60% self-sufficiency level in 2020. There are plans to collaborate with the private sector to increase that level to more than 85 percent by 2030. The government has also been actively working to remove obstacles for producers to acquire and use the land for poultry production, provide loans for equipment purchases, and reform its subsidy system for feed, livestock, and poultry. This is anticipated to increase poultry production, eventually creating demand for alfalfa hay.
Ban on Forage Crop Cultivation in Saudi Arabia (leading increased imports)
- In 2016, Saudi Arabia began a three-year plan to phase out domestic green forage production to reduce water consumption. Total forage production is currently estimated at 4 million metric tons per year. The country is hence dependent on imports to meet its green fodder demand. The United States is the primary exporter of alfalfa hay. However, Saudi dairies are attempting to procure from alternative sources like Argentina and Sudan.
- In 2018, the Government reintroduced support for wheat production to provide forage producers with an alternative, less water-intensive crop than alfalfa, the main green fodder crop. However, despite the high procurement price of wheat by the Saudi Grains Organization (SAGO), at USD 304 per metric ton in 2020, many farmers still prefer to produce high-protein alfalfa as its income per hectare is higher.
- Hence, Saudi Arabia's decision to phase out forage production will likely increase the demand for imported high-protein alfalfa hay in the near future. For instance, the imports of alfalfa have increased significantly in recent years. In 2021, the total import value for alfalfa meals accounted for around USD 65.5 million, which increased from USD 31.3 million in 2018.
Saudi Arabia Alfalfa Hay Market News
- November 2021: Saudi Arabia imported around 171 thousand metric tons of alfalfa meals and pellets, which increased from 14.6 thousand metric tons in 2019. (The imports have been increased mainly due to the country's ban on cultivating forage crops).
- November 2018: On 5th November, the Saudi government banned the cultivation of green fodder, including alfalfa. The ban aims to reduce the pressure on the country's renewable water resources. According to the Ministry of Environment, Water, and Agriculture (MEWA), this is expected to cause high demand for importing alfalfa meals to the country.
Saudi Arabia Alfalfa Hay Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Value Chain / Supply Chain Analysis
5. MARKET SEGMENTATION
5.1 Production Analysis
5.2 Consumption Analysis by Volume and Value
5.3 Import Market Analysis by Volume and Value
5.4 Export Market Analysis by Volume and Value
5.5 Price Trend Analysis
6. MARKET OPPORTUNITIES AND FUTURE TRENDS
Saudi Arabia Alfalfa Hay Industry Segmentation
Alfalfa, popularly known as lucerne, is an important forage crop widely grown for hay, pasturage, and silage. Alfalfa hay is very nutritious and palatable, high in protein, minerals, and vitamins.
The Saudi Arabia alfalfa hay market includes production analysis (volume), consumption analysis (value and volume), export analysis (value and volume), import analysis (value and volume), and price trend analysis.
The report offers the market size and forecasts in terms of value in USD million and volume in metric ton for all the above segments.
Saudi Arabia Alfalfa Hay Market Research FAQs
What is the current Saudi Arabia Alfalfa Market size?
The Saudi Arabia Alfalfa Market is projected to register a CAGR of 5.20% during the forecast period (2024-2029)
What years does this Saudi Arabia Alfalfa Market cover?
The report covers the Saudi Arabia Alfalfa Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Saudi Arabia Alfalfa Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Alfalfa Hay in Saudi Arabia Industry Report
The Alfalfa Hay market in Saudi Arabia is comprehensively analyzed in the latest industry report by Mordor Intelligence™. This report covers a detailed market analysis, including production and consumption analysis by both volume and value. It also examines export and import trends, providing insights into the market size and market share. The report offers an industry overview and presents the market forecast outlook, highlighting the anticipated growth rate of the Alfalfa Hay market.
In addition to market trends and market growth, the report delves into price trend analysis, providing a clear picture of the market value. The industry analysis includes historical data and future predictions, ensuring a robust market review. This industry research also identifies market leaders and key players, offering a comprehensive market segmentation.
The industry outlook provided in this report is supported by extensive industry statistics and market data. The report also includes a market overview and market predictions, ensuring that stakeholders have access to critical industry information. For those interested in a deeper dive, a report example and a free report PDF download are available.
This market report is essential for understanding the dynamics of the Alfalfa Hay market in Saudi Arabia, offering valuable insights for research companies and industry professionals. The market review and market segmentation provided in this report are crucial for strategic planning and decision-making. With a focus on industry trends and market outlook, this report is a vital resource for anyone looking to understand the Alfalfa Hay market landscape.
