RIYADH, SAUDI ARABIA — The Grain Silos and Flour Mills Organization (GSFMO) is going to be divided into four companies according to reports in local Saudi media.
The privatization is expected to be completed by the end of next year. The Saudi government will continue to buy and provide subsidized wheat to the companies to keep flour prices the same.
Founded in 1972 by royal decree GSFMO is an important part of Saudi Arabia’s economy. “GSFMO is one of the most important economic edifices in the Kingdom, where it has a vital and important role in importing the kingdom’s needs of flour and maintaining a strategic stock that sufficient to produce and distribute flour commodity,” Minister of Agriculture - GSFMO Chairman of the Board of Directors H.E. Abdulrahman bin Abdulmohsen Al-Fadhli said in the company’s 2014 annual report.
GSFMO has been investing in its milling infrastructure over the last few years to increase its total milling capacity. “As a result of the rehabilitation operations and increasing the establishing of new mills, the capacity of milling increased to become 12,630 tonnes of wheat per day, producing more than 60 million flour bags weighting 45 KG per year,” Director General of GSFMO H.E. Eng. Ahmad A. Al-Fares said in the 2014 annual report. “Ever since its establishment, more than forty years ago, the organization has witnessed several developments in all its activities. The storage capacity of silos has increased as a result of the newly implemented projects, and expansions of existing projects to become 2,770,000 tonnes. As part of the future expansions, many projects are being implemented so that storage capacities of silos will reach 3.2 million tons that will increase the strategic reserve stock to be sufficient for about one year of the Kingdom’s consumption.”
As of the 2014 annual report issued in September 2015, GSFMO has flour mills in 10 locations spread all over Saudi Arabia.
Riyadh — 2,550 tonnes per day
Jeddah — 2,580 tonnes per day
Dammam — 1,350 tonnes per day
Al-Qassim — 900 tonnes per day
Khamees Mushayt — 1,650 tonnes per day
Tabuk — 600 tonnes per day
Hail — 600 tonnes per day
Al-Jouf — 600 tonnes per day
Medina — 600 tonnes per day
Al-Jumom — 1,200 tonnes per day
Additionally, GSFMO has feed mills in five provinces. The total production capacity of these feed mills is 2,900 tons per day.
Riyadh — 300 tonnes per day
Jeddah — 300 tonnes per day
Dammam — 300 tonnes per day
Al-Qassim — 600 tonnes per day
Khamees Mushayt  — 1,400 tonnes per day
GSFMO produces a large variety of flour, wheat and feed products. The company produces many varieties of flour in different packages. The quality of flour vary between patent flour (extraction 70%), powder flour (extraction 80%), ordinary flour (extraction 85%), patent whole wheat flour (extraction 95%), and whole wheat flour (extraction 95%). Moreover, the packages come in different bags ranging from large sizes 45 KG to small bags for domestic use in sizes 10, 2 and 1 KG.
The company also produces many wheat derivatives like grits, mash, bulgur, bran for human use, and wheat germ packed in different packages. GSFMO also produces 38 types of feed packed in 50 Kg bags. The most important types are: poultry feed, livestock feed (fattening and M/F) and some other varieties. Also, there are some other products like bran for animal use which sold in bulks or in 40 KG bags.