US beef sales in Saudi Arabia could reach $150 million

US beef sales in Saudi Arabia could reach $150 million US beef sales in Saudi Arabia could reach $150 million

JEDDAH — Energy and security have long been central to Saudi-U.S. relations, but at the Saudi Food Show in Jeddah, a different area of cooperation was on display: agriculture.For the first time, a dedicated U.S. pavilion brought American producers together at the event, showcasing products ranging from walnuts, potatoes and popcorn to beef as the two countries explore opportunities to expand agricultural trade and cooperation.Touring the pavilion, U.S. Consul General Rafik Mansour said the potential relationship goes beyond increasing American food exports to the Kingdom, with opportunities spanning food security, technology, research and supply-chain resilience.“Saudi Arabia gains quite a bit, actually. It’s more than just additional imports when you think about it,” Mansour told Saudi Gazette.The United States, he said, has expertise across the agricultural value chain, including production, food safety, logistics, technology, research and marketing. Water-use efficiency, agricultural technology, food processing, cold-chain logistics and sustainable production are among the potential areas for cooperation.“It’s about what our two countries can build together,” Mansour said.He said agriculture “connects several strands of the bilateral relationship at once: trade, investment, technology, research, food safety, and supply chain resilience.”Cooperation could include US companies investing or building partnerships in Saudi Arabia, Saudi companies partnering with American businesses, joint research and university cooperation, and work on food safety, standards, logistics and sustainability. Mansour said Saudi Arabia’s experience in developing agricultural practices under challenging climate and water conditions could also contribute to the exchange.“Saudi Arabia is also developing innovative approaches to agriculture under challenging climate and water conditions. This is very much a two-way exchange,” he said. “The United States can learn from the Saudi experience just as we help complement and advance those efforts.” US beef targets Saudi market growthUS beef provides one example of the potential for increased agricultural trade between the two countries.The United States sees potential for its beef sales in Saudi Arabia to reach $150 million, according to US Agricultural Attaché Chris Frederick.Reaching that level will depend on demand, pricing, reliable supplies and broader distribution networks, he said.Speaking to Saudi Gazette, Frederick said the Saudi Food and Drug Authority’s removal of a requirement for US beef exporters to participate in the US Department of Agriculture’s Export Verification program has helped make American beef more cost-competitive and allowed more US suppliers to enter the Saudi market.American producers, however, face competition from other international beef suppliers already established in the Kingdom.Frederick cited quality, consistency and the diversity of US production as advantages, while saying growth would also depend on pricing, supply reliability and investment by American companies.He said US beef could expand beyond restaurants and hotels into supermarkets and other retail channels, but suppliers would need to respond to Saudi consumer preferences.“The US industry, of course, will have to adapt,” Frederick said. “US beef is in more than one hundred countries around the world, and they know how to adapt into local cuisines.”Packaging, cuts and product presentation would also need to reflect local demand, he said. Halal requirements Any US beef entering Saudi Arabia must meet the Kingdom’s halal requirements.“We have a two-prong approach,” Frederick said. “Our USDA’s food inspection service handles the conventional food safety, and also the Saudi Food and Drug Authority has approved halal certifiers inside the United States that will do certification of halal requirements for US beef.”He said compliance is mandatory for suppliers seeking to enter the Saudi market.“It is one hundred percent absolutely necessary that they meet those halal requirements. Otherwise, they cannot do business here.”Mansour said transparency and communication between regulators and businesses would also be important in maintaining consumer confidence.“Consumer confidence ultimately depends on the integrity of the entire food system,” he said. “Greater transparency and communication between the regulators and the industry benefits everyone. Consumers gain confidence, and businesses gain clarity.” Saudi products in the USAgricultural trade also extends from Saudi Arabia to the United States.Asked about Saudi products in the American market, Frederick pointed to Saudi dates already sold through major US retailers, while shrimp and cheese were also mentioned as potential products.“But the dates,” Frederick said, “they’re in Costco, they’re in Trader Joe’s, they’re in many of the famous supermarkets already in the United States.”Looking ahead, Mansour said progress could be measured by stronger regulatory and technical cooperation, increased partnerships between companies and research institutions, greater investment and technology cooperation, and more reliable supply chains.“Ultimately, success would mean that our agricultural relationship has become more deeply institutionalized and built on lasting partnerships rather than just individual transactions.”

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