Environment & Energy
Related: About this forumAs Groundwater Goes, KSA's #1 Dairy Producer Buys 1,700 Acres In CA To Raise Alfalfa For Its Cattle
If you are the largest dairy producer in Saudi Arabia and you are running out of water to grow cattle feed, theres only one thing to do if you want to stay in business: go shopping. Which is exactly what dairy giant Almarai has done, undertaking a global search for land and water to grow alfalfa to feed its dairy cows. The search brought Almarai to a most surprising place: California, which is suffering its worst drought in recorded history.
Earlier this year, the company announced that it had paid $31.8m for 1,790 acres of land near Blythe, in the southeastern corner of California, for the sole purpose of growing alfalfa. Known as lucerne in some parts of the world, alfalfa is a member of the pea family, growing up to 1 meter high with small purple flowers and leaves that resemble clover. Almarai will grow the crop using water diverted from the Colorado River, then ship it back to Saudi Arabia to feed Almarais estimated 1m dairy cows, helping to ensure it remains the number one dairy producer in a nation of 30 million people.
EDIT
For decades, an agricultural boom in Saudi Arabia relied entirely on groundwater. But rapid growth depleted those aquifers, causing many farms to collapse and forcing the nation to whiplash from being a net exporter of many commodities to a net importer. Alfalfa, a thirsty crop that is among the most nutritious livestock feeds, is just one case in point. Almarai is the largest player in the Saudi Arabian dairy business. Its founder and largest shareholder is Saudi Prince Sultan bin Mohammed bin Saud Al Kabeer. The company holds the top position in sales of cheese, milk and yogurt, notching record profits of $1.4bn in 2015, up 15% from the prior year. It has held that position, despite water shortages, by importing alfalfa and buying farmland in other countries.
With such deep pockets, the company is able to buy farmland anywhere. It made a smart choice in the Blythe area: the desert region has abundant sunshine and ample water rights in the Colorado River, which have remained secure despite Californias four-year drought. This combination is partly why Californias soil can produce more alfalfa per acre than any state except one. Only Arizona gets a higher yield and Almarai has bought farmland there too.
http://www.theguardian.com/sustainable-business/2016/mar/08/saudi-arabia-alfalfa-california-drought-almarai
daleanime
(17,796 posts)Idiots. All the way around.
Person 2713
(3,263 posts)eppur_se_muova
(36,227 posts)it is only because of huge (up to 90%) water subsidies that this is economically feasible. If farms had to pay the actual cost of irrigation water, there would be no pasturage in most of CA.
pscot
(21,023 posts)are buying water rights in the Colorado river and shipping them to Arabia. Sweet.