Kingdom starts large-scale peanut farming
Saudi Gazette 27 November 1995
Saudi Arabia has for the first time entered into peanut production at a farm in Hail which is the only one in the Mid-east region.
Buyers are already trooping in form Europe. "Just recently we sent a container to France on a trial basis, say Khalil, manager of the farm.
Peanut farming is Saudi Arabia, he notes, requires patience and strong nerves. It all depends on the weather and the international market. Last year a hail storm devastated 20 percent of the crop and the insurance company is yet to pay for the huge losses.
This year nature has been kind. But in the US, bad weather has hit the crop, plus, the demand for peanut oil has risen in India. And Golden Grass, which own the farm, expects to reap the fruits of its labour. "We are forturnate. We should be able to sell for about $700 (SR 2,618) per tonne," says Khalil.
The Golden Grass incorporated is located in Hail, about 600 km from Riyadh. The company had earlier scaled down its production of wheat and barley, which depended on allowances from the government.
"Now farming should stand alone without a heavy subsidy from the government. We have been anticipating this for many years now, and have acted accordingly, Turki Faisal Al Rasheed, a US-trained agricultural engineer.
Hail is an ideal location for farming, Water seems to be in plenty, the soil is good, and the weather is balmy this time of the year.
The area is dotted with huge farms, growing everything from wheat, barley to vegetables. Hadco and Nadec are heavily represented here. Sadia also has massive broiler farm in the region.
In the early 80's, Saudi Arabia developed a new policy of subsidies to help grow wheat for local consumption. Water depletion from the aquifers reached maximum levels.
"…These are the main reasons which forced the government change its policy to wheat subsidies," according to the company profile report. By last year wheat production in the area dropped by 80 percent, and other cereals by more than 60 percent. The government has also decreed that the total area for cereal production should not exceed 450,000 hectares. Recently, a senior government official had also remarked that Saudi Arabia does not aspire to be a wheat exporter.
The company started mainly because of the massive wheat production in the Kingdom. In 1984, it was found that the wheat crop was being heavily infested by rye grass which was reducing crop yield.
Thus, Golden Grass Agrochemical was born. With a "magic solution" called Hoegrass, from the international company Hoechst, it entered the herbicide market. Al-Rasheed notes,"….we feel it is our responsibility to help our customers with the know-how of how to grow a variety of crops and to ensure also they have a good crop."
Peanut is a delicate crop. It requires sandy soil with a PH value of 6.5, and average rainfall. It is a summer crop and planting starts in April, and harvesting can be done within 100 to 150 days, depending on the peanut variety.
One other reason this protein-rich legume was chosen for planting is that is helps fix nitrogen, increase organic material and augments the soil's water holding capacity. " It improves yield of other crops," notes the manager.
The company's farm area of 1020 hectares was found not enough, so it rented 57 pivots in the neighboring Nadec farm. Each pivot, which is a mechanized watering unit, covers a circular area of 50 to 60 hectares.
The local market demand for peanuts is 5,000 tonnes, according to Khalil, who adds that the company plans to add value to its crop by including a line for peanut butter.
This plant is already built and is waiting for finance from the Saudi Industrial Development Fund (SIDF). But the manager notes it will be competing with international players who have been in the business for the past 50 years. Within the year it plans to also set up a facility for roasted, salted and blanched peanuts.
The company had initially a tough time marketing its crop in the Kingdom and ran into losses for two to three years. But today it has a 30 percent market share with its "Virginia" and "Runner" varieities. Major international buyers are from Australia, Europe, Jordan and the UAE.
Negotiations are presently underway to export to the US and South Africa. "We want to put Saudi peanuts on the international map, "says Dr. Khalil.
Saudi Gazette 27 November 1995
Saudi Arabia has for the first time entered into peanut production at a farm in Hail which is the only one in the Mid-east region.
Buyers are already trooping in form Europe. "Just recently we sent a container to France on a trial basis, say Khalil, manager of the farm.
Peanut farming is Saudi Arabia, he notes, requires patience and strong nerves. It all depends on the weather and the international market. Last year a hail storm devastated 20 percent of the crop and the insurance company is yet to pay for the huge losses.
This year nature has been kind. But in the US, bad weather has hit the crop, plus, the demand for peanut oil has risen in India. And Golden Grass, which own the farm, expects to reap the fruits of its labour. "We are forturnate. We should be able to sell for about $700 (SR 2,618) per tonne," says Khalil.
The Golden Grass incorporated is located in Hail, about 600 km from Riyadh. The company had earlier scaled down its production of wheat and barley, which depended on allowances from the government.
"Now farming should stand alone without a heavy subsidy from the government. We have been anticipating this for many years now, and have acted accordingly, Turki Faisal Al Rasheed, a US-trained agricultural engineer.
Hail is an ideal location for farming, Water seems to be in plenty, the soil is good, and the weather is balmy this time of the year.
The area is dotted with huge farms, growing everything from wheat, barley to vegetables. Hadco and Nadec are heavily represented here. Sadia also has massive broiler farm in the region.
In the early 80's, Saudi Arabia developed a new policy of subsidies to help grow wheat for local consumption. Water depletion from the aquifers reached maximum levels.
"…These are the main reasons which forced the government change its policy to wheat subsidies," according to the company profile report. By last year wheat production in the area dropped by 80 percent, and other cereals by more than 60 percent. The government has also decreed that the total area for cereal production should not exceed 450,000 hectares. Recently, a senior government official had also remarked that Saudi Arabia does not aspire to be a wheat exporter.
The company started mainly because of the massive wheat production in the Kingdom. In 1984, it was found that the wheat crop was being heavily infested by rye grass which was reducing crop yield.
Thus, Golden Grass Agrochemical was born. With a "magic solution" called Hoegrass, from the international company Hoechst, it entered the herbicide market. Al-Rasheed notes,"….we feel it is our responsibility to help our customers with the know-how of how to grow a variety of crops and to ensure also they have a good crop."
Peanut is a delicate crop. It requires sandy soil with a PH value of 6.5, and average rainfall. It is a summer crop and planting starts in April, and harvesting can be done within 100 to 150 days, depending on the peanut variety.
One other reason this protein-rich legume was chosen for planting is that is helps fix nitrogen, increase organic material and augments the soil's water holding capacity. " It improves yield of other crops," notes the manager.
The company's farm area of 1020 hectares was found not enough, so it rented 57 pivots in the neighboring Nadec farm. Each pivot, which is a mechanized watering unit, covers a circular area of 50 to 60 hectares.
The local market demand for peanuts is 5,000 tonnes, according to Khalil, who adds that the company plans to add value to its crop by including a line for peanut butter.
This plant is already built and is waiting for finance from the Saudi Industrial Development Fund (SIDF). But the manager notes it will be competing with international players who have been in the business for the past 50 years. Within the year it plans to also set up a facility for roasted, salted and blanched peanuts.
The company had initially a tough time marketing its crop in the Kingdom and ran into losses for two to three years. But today it has a 30 percent market share with its "Virginia" and "Runner" varieities. Major international buyers are from Australia, Europe, Jordan and the UAE.
Negotiations are presently underway to export to the US and South Africa. "We want to put Saudi peanuts on the international map, "says Dr. Khalil.
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