Isn't It interesitng that ..?

Question

Isn't it interesting that saudi arabia produce its own wheat and can export some of it since 1984.

I think it is a big achievement for them in their dry land country.

I told a friend this and He said that the wheat produced in saudi arabia is expensive that other parts of world.

I want to know how much does it cost for saudi arabia to produce one kilogram of wheat?

Could you introduce me a website as an evidence for my friend, please?

Thanks

Answer 1

Fascinating .  

Why don't we trade grain - bushel for barrel - for oil with those desert/oil glutted countries?

Answer 2

Some other trivia about Arabian wheat, they had to drill wells to around 5,000 feet deep to find adequate water and from that depth, the water comes out at 120 degrees F, WAY to hot to irrigate with.  They then had to build cooling towers to cool it down before using.  They run it through Valley center pivots and when they started this project many years ago, they hired Americans to show them how to get the operation going.

Answer 3

No.  no, it is not.

Answer 4

John, It is a very interesting story here. It is not that it costs more to produce wheat for the Saudis, or that is in money. Saudi Arabia set out to become self sufficient in wheat production and subsidized the price to farmers many times the market value for wheat. The farmers recognized this as the great deal that it was. In a few years they were not only producing enough wheat for themselves, but had great amounts to export. The exported wheat brought the world market price, so the government was paying a huge price for their wheat and losing a lot exporting. But the real problem was not the money, the Saudis have more than they can spend, it was that producing the wheat was using up their precious water supply. So in essence they were exporting their water, which they can't afford. So the government is cutting way back on the subsidies and trying to cut the wheat produced down to just what they need for themselves.

http://www.american.edu/TED/SAUDI.HTM

http://www.danielpipes.org/blog/820