G/AG/N/SAU/8  
26 February 2014  
(14-1164)  Page: 1/13  
Committee on Agriculture  Original: English  
 
   
 
NOTIFICATION 
 The following submission dated 21 February 2014,  is being circulated at the request of the 
Delegation of the Kingdom of Saudi Arabia . The notification concerns domestic support 
commitments ( Table DS:1  and the relevant Supporting Tables) for the calendar year 2011 . 
 
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  G/AG/N/SAU/8  
- 2 - Table DS:1 
DOMESTIC SUPPORT: KINGDOM OF SAUDI ARABIA 
REPORTING PERIOD: CALENDAR YEAR 2011 
Current Total Aggregate Measurement of Support 
Total AMS commitment level for  
period in question Currency Current Total AMS 
(from Section I of Part IV of the Schedule) (from Section I of  Part IV of the Schedule) (from attached Supporting Tables) 
1 2 3 
3,415.76 Million Saudi Riyals 371.53 
 
 
   
  G/AG/N/SAU/8  
- 3 - Supporting Table DS:1 
DOMESTIC SUPPORT: KINGDOM OF SAUDI ARABIA 
REPORTING PERIOD: CALENDAR YEAR 2011 
Measures exempt from the reduction commitment - "Green Box" 
Measure Type Name and descriptio n of measure with reference  
to criteria in Annex 2 Monetary value of measure 
in year in question 
(Million SRls) Data 
sources 
1 2 3  
(a) General Services  650.41   
Research  Agricultural Research Stations, Plant tissue cultures lab, Operation and 
maintenance, Regional lab, Agricultural Research Centres and Distance sensors centres.  37.84  MOA 
Pest and disease control Securance of veterinary, Vacci ne production, Veterinary labs, Air spray pest and 
disease control, and Veterinary services. 222.70 MOA 
Training Saudi Chinese Cooperation1, FAO Agreement and Veterinary training centres. 58.80 MOA 
Extension Agricultural Extension Expenses, Programmes of nurseries and Extension and 
development of Honeybees. 7.50 MOA 
Inspection Services Operation of stations of sort ing and purification of seeds and Establishment and 
equipping of veterinary quarantine. 13.00 MOA 
Infrastructural Services Construction of dams, maintenance of dams, Irrigation and drainage systems, 
Prevention of moving sand and Planting and development of forests. 310.57 MOA, 
MOWE 
(b) Public stockholding for food security purposes
2 GSFMO, among other things, fulfils a public  stockholding role for food security 
purposes by managing and controlling the storage and distribution of grains.  39.80 GSFMO 
TOTAL GREEN BOX  690.21  
1 See methodological note number 2. 
2 This meets the criteria of foot note to paragraph 3 of Annex 2 of  the Agreement on Agriculture. 
MOA = Ministry of Agriculture MOWE = Ministry of Water & Electricity GSFMO = Grain Silos and Flour Mills Organization  
  G/AG/N/SAU/8  
- 4 -  
Supporting Table DS:4 
DOMESTIC SUPPORT: KINGDOM OF SAUDI ARABIA 
REPORTING PERIOD: CALENDAR YEAR 2011 
Calculation of the Current Total Aggregate Measurement of Support 
Description of basic products  
(including non-product-specific AMS) Product-specific AMS  
(from Supporting Tables DS:5 
to DS:7 below) 
(Million SRls) Product-specific 
measurements of support 
(from Supporting Table DS:8 
below) Current Total AMS 
 
 
(Million SRls)  
1 2 3 4 
Wheat 371.53  371.53 
Barley 0.00  0.00 
Livestock 658.54  de minimis1 
Poultry 658.50  de minimis1 
Dates 47.40  de minimis1 
Dairy 0.00  0.00 
    
Non-product-specific AMS (from Supporting Table 
DS:9) 606.43  de minimis1 
Total   371.53 
1 de minimis  calculation is explained in the attached methodological note (Annex 3).  
  G/AG/N/SAU/8  
- 5 - Supporting Table DS:5 
DOMESTIC SUPPORT: KINGDOM OF SAUDI ARABIA 
REPORTING PERIOD: CALENDAR YEAR 2011 
Product-Specific Aggregate Measurements of Support: Market Price Support 
Description of 
basic products Calendar 
year 2011 Measure type(s) Applied 
administered 
price  External 
reference 
price1 Eligible 
production  Associated 
fees/levies Total market 
price support  Data 
sources 
   (SRls/tonne)  (SRls/tonne)  (tonnes)   (Million SRls)   
1 2 3 4 5 6 7 8 
((4-5*6)-7) 9 
Wheat  Market price support 1,000 658.29 1,087,264  371.53 GSFMO 
Barley  Market price support - 685.22 0  0.00 GSFMO 
 
1 World prices CIF Jeddah. 
GSFMO = Grain Silos and Flour Mills Organization  
  G/AG/N/SAU/8  
- 6 - Supporting Table DS:6  
DOMESTIC SUPPORT: KINGDOM OF SAUDI ARABIA 
REPORTING PERIOD: CALENDAR YEAR 2011 
Product-Specific Aggregate Measurements of Support: Non-Exempt Direct Payments 
Description 
of basic 
product Calendar 
year 
2011 Measure 
type(s) Applied 
administered 
price External 
reference 
price 
(generally 
from 
AGST/…) Eligible 
production Total 
price-
related 
direct 
payments  Other 
non-
exempt 
direct 
payments Associated 
fees/levies Total 
direct 
payments  Data 
sources 
       (Million 
SRls)  (Million 
SRls)  
1 2 3 4 5 6 7 
((4-5)*6)) 8 9 10 
(7+8-9) 11 
Dates  Fixed amount 
of subsidy     47.40  47.40  MOA 
 
MOA = Ministry of Agriculture   
  G/AG/N/SAU/8  
- 7 - Supporting Table DS:7 
DOMESTIC SUPPORT: KINGDOM OF SAUDI ARABIA 
REPORTING PERIOD: CALENDAR YEAR 2011 
Product-Specific Aggregate Measurements of Support: Othe r Product-Specific Support and Total Product-Specific AMS 
Description 
of basic 
product Calendar 
year 
2011 Measurement 
type(s) Other 
product-
specific 
budgetary 
outlays Other 
product 
specific 
support 
(include 
calculation 
details) Associated 
fees/levies  Total 
other 
product-
specific 
support Market 
price 
support 
(Supportin
g Table 
DS:5) Non-exempt 
direct 
payments 
(Supporting 
Table DS:6) Total 
product-
specific 
AMS Data 
sources 
      (Million 
SRls) (Million SRls) (Million SRls) (Million 
SRls)   
1 2 3 4 5 6 7 
(4+5-6) 8 
 9 10 
(7+8+9) 11 
Wheat  Market price 
support     371.53  371.53 GSFMO 
Barley  Market price 
support     0.00  0.00 GSFMO 
Dates   
Fixed amount of 
subsidy       
47.40 47.40  
MOA 
  Target subsidy for 
palm trees1    0.00     
Livestock  Input subsidy    658.54    658.54 Annex 
22   
  G/AG/N/SAU/8  
- 8 - Description 
of basic 
product Calendar 
year 
2011 Measurement 
type(s) Other 
product-
specific 
budgetary 
outlays Other 
product 
specific 
support 
(include 
calculation 
details) Associated 
fees/levies  Total 
other 
product-
specific 
support Market 
price 
support 
(Supportin
g Table 
DS:5) Non-exempt 
direct 
payments 
(Supporting 
Table DS:6) Total 
product-
specific 
AMS Data 
sources 
      (Million 
SRls) (Million SRls) (Million SRls) (Million 
SRls)   
1 2 3 4 5 6 7 
(4+5-6) 8 
 9 10 
(7+8+9) 11 
Poultry   
Fixed amount of 
input subsidy for 
feed (imported 
corn and soybean)     
658.50    658.50  
MOF 
  Fixed amount of 
input subsidy for 
equipment    0.00    ADF 
Dairy   Fixed amount of 
input subsidy for 
production equipment and 
transportation 
costs   
 0.00   0.00 ADF 
 
1 To encourage producers to use drip irrigation for water conservation. 
2 For calculations, see methodological note (Annex 2). 
GSFMO = Grain Silos and Flou r Mills Organization 
MOA = Ministry of Agriculture MOF = Ministry of Finance ADF = Agricultural Development Fund 
   
  G/AG/N/SAU/8  
- 9 - Supporting Table DS:9 
DOMESTIC SUPPORT: KINGDOM OF SAUDI ARABIA 
REPORTING PERIOD: CALENDAR YEAR 2011 
Non-Product-Specific AMS 
Measure type(s) Calendar year 
2011 Non-product-
specific 
budgetary 
outlays Other non-product 
specific support 
(include calculation 
details) Associated 
fees/levies Total non-product-
specific support Data sources 
  (Million SRls) (Million SRls)  (Million SRls)  
1 2 3 4 5 6 
(3+4-5)  
General agricultural 
subsidies1     55.74 ADF 
Opportunity cost for interest-free agricultural loans
2     6.36 ADF 
Bad debts for agricultural loans
3     544.33 ADF 
Total     606.43   
 
1 Agricultural subsidies are paid by AD F. See methodological note number 7. 
2 For calculations, see methodological note number 8. 
3 For calculations, see methodological note number 9. 
 
ADF = Agricultural Development Fund 
The ADF replaced the Saudi Arabian Agricultural Bank (SAAB). G/AG/N/SAU/8 
- 10 - 
  METHODOLOGICAL NOTE 
THE BASIS OF CALCULATION OF AGRICULTURAL DOMESTIC SUPPORT 
This is an explanatory note to be read in conjunction with the current Saudi domestic support 
notification. 
1. The figures are expressed in Saudi Riyals, where the exchange rate has been fixed at US$ 
1 = SAR 3.75 since 1986. 
2. Saudi Chinese Cooperation: In the context of this programme, specialists from China are 
contracted with in order to work in the Ministry of Agriculture. Similarly, Saudis are sent to 
this country to gain experience. In addition, laboratory equipment is provided to support 
these programmes. 
3. In determining eligible production for wheat, it excludes 5% impurities and 5% Zakat from 
total production. The ratio of 5% impurities represents a general average based on 
samples analysis drawn randomly from wheat an d barley received by GSFMO. The ratio of 
5% Zakat is determined according to Islamic Rules (this percentage of Zakat is limited 
only on farming and differs from the normal Zakat on all kinds of money which is 2.5%). 
4. The applied administered price of wheat has been reduced to SAR 1,000/tonne (or US$ 
266.67) since 2004. 
5. External reference prices of wheat are expressed as CIF Jeddah. These reference prices are 
determined as a sum of (Export price of US Hard Winter Ordinary Protein, FOB US Gulf Ports) + Ocean Freight to Egypt (Alexandria) + US$ 3/tonne as estimated freight from Alexandria to Jeddah (2001-2003 Base Year). (Source: Food Outlook of the Food and 
Agriculture Organization of the UN, No. 5, December 2002 and No.1 April 2005). 
6. The external reference price for barley is calculated as the annual average of effective 
import prices for barley imported by GSFMO during the period 2001-2003 (Base Year). 
7. Agricultural subsidies which are included in Supporting Table DS:9 are provided to all 
agricultural projects: wheat, poultry, dairy, sheep, greenhouse, vegetables and fruits, etc. 
These subsidies can be disclosed as follows: 25% of the price fixed by the Ministry of 
Agriculture for farm machinery; and the cost of poultry and dairy farms equipments. 
8. The opportunity cost for agricultural loans represents the amount of total loans granted by 
the Agricultural Development Fund (ADF) multiplied by the average commercial interest rates because ADF does not charge interest on the granted loans (Annex 1). 
9. Bad Debts for Agricultural Loans represent due balances carried forward for several 
financial years divided by ten. These amounts are based on a ten-year average because medium-term loans are extended for a period of ten years. 
10.  Calculation of livestock feed subsidy (Annex 2): the amount of subsidy per tonne on 
imported barley is the difference between th e reference price and the price paid by the 
domestic livestock producers. The calculation of this subsidy is as following: 
 
 - For imported barley: IFBS = (E - P) * I, where: 
 IFBS: Imported feed barley subsidy; 
 P: Price paid by livestock producers for barley; 
 E: External reference price (= world price C.I.F Jeddah); and 
 I: Quantity of Imported barley.  
 G/AG/N/SAU/8 
- 11 - 
   
ANNEX 1 
THE OPPORTUNITY COST FOR THE INTEREST FREE TOTAL LOANS 
GRANTED BY THE SAUDI ARABIAN AGRICULTURAL BANK 
Reporting period: Calendar year 2011 
Year Amount of Total loans 
Million Saudi Riyals Average Interest 
Rate % Opportunity cost 
Million Saudi Riyals 
2011 916.41  0.694 6.36 
 
Sources : 1 - Agricultural Development Fund (ADF). 
 2 - Saudi Arabian Monetary Agency (SAMA).    
  G/AG/N/SAU/8  
- 12 - ANNEX 2 
CALCULATION OF LIVESTOCK FEED SUBSIDY 
Reporting period: Calendar year 2011 
Description of  
Basic products Calendar 
year Measure  
Type (s) Reference 
price 
 Price paid by 
livestock 
producers Quantity Associated 
fees/levies Total support Data 
sources 
   (SRls/T) (SRls/T) (Ton)  (Million SRls)   
1 2 3 5 4 6 7 8 9 
Livestock:        GSFMO 
Input subsidy         
Imported barley 2011  927 800 5,185,326  658.54  
Domestic barley   -  - 0    
Total       658.54  G/AG/N/SAU/8 
- 13 - 
  ANNEX 3 
CALCULATION OF DE MINIMIS  FOR CERTAIN PRODUCTS  
Reporting period: Calendar year 2011 
Product Name Production Value 
2011 
(Million SRls) Product 
Support 2011 
(Million SRls) AMS % Comments 
Wheat 1,184.00 371.53 31.40  
Barley 0.00 0.00 0.00 0.00 
Livestock  7,700.00 658.54 8.55 de minimis  
Poultry  7,406.00 658.50 8.90 de minimis 
Dates 8,064.00 47.40 0.59 de minimis 
Dairy  6,433.00 0.00 0.00 0.00 
Non-product-specific 48,163.00 606.43 1.26 de minimis 
 
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