Saudi Arabia's largest barley importer, United Group, is pivoting away from Black Sea suppliers as the Russia-Ukraine war disrupts shipments and spikes prices. CEO Abdulaziz Aldharrab said the firm sourced about a quarter of its imports from the region in the first half of the year, but that share is now dropping. The last Black Sea vessel arrived roughly two weeks ago; shipments are now coming from the European Union, Argentina, Romania, Bulgaria, and France, with Argentina likely rising to 30% of purchases from 20% last year.

Barley delivered to Saudi Arabia is up to 25% more expensive than two months ago, a cost Aldharrab warns will eventually pass to consumers. The upheaval compounds regional risks, including Red Sea shipping threats that have raised freight and insurance costs. Riyadh maintains strategic stockpiles — five to six months of wheat and at least 55 days of barley — but higher feed costs could squeeze poultry and lamb margins.

Aldharrab warned that less wealthy nations in the Middle East and North Africa face greater vulnerability if the conflict persists, urging parties to secure a grain corridor.