Lithuania sells grain directly to Saudi Arabia for the first time in history(1)
On July 16, Saudi Arabia's state grain buyer, the Saudi Grains Organization (SAGO) bought 115 thousand tons of Lithuanian wheat through an international tender from the Lithuanian grain trade company Agrorodeo. The Lithuanian capital company Agrorodeo is the first in the Baltic States to directly sell grain to Saudi Arabia through an international tender, a press release from the company states.
So far, Lithuanian grain reached Saudi Arabia through international corporations. Usually, Lithuanian grain trade companies sell Lithuanian grain to such grain export giants as Louis Dreyfus, ADM, Cargill, Bunge or other foreign export companies, which have permits to directly export grain to the Saudi Arabian market.
Agrorodeo has been added to SAGO register of approved suppliers and officially approved to participate in the Saudi Arabian state grain tenders at the end of 2017. The company's managing director Robertas Lapinskas recounts that in order to successfully participate in foreign countries' international grain tenders, not only official permits are important, but also the company's reputation and reliability. "The fact that we can compete as equals with the largest companies in the world is a massive achievement and proof of our competence," he says.
The Saudi Arabian state grain tender purchased a total of 625 thousand tons of grain, almost a fifth of which comes from Lithuania. Two ships with this historic Lithuanian cargo will be dispatched from Baltic Sea ports in August – September.
Agrorodeo Ltd. reached a turnover of 314.5 million euro from trading in plant based agricultural produce in 2017. The company exports Lithuanian farmers and foreign partners' produce to thirty countries around the world. Agrorodeo is among the twenty largest companies in the country.