Demand and Supply in Saudi Arabia's Green Fodder, Livestock, and Meat Markets

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Demand and Supply

Supply
Equilibrium
Demand
P
Q Quantity
Price
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Introduction
Demand and supply is defined as two major economic aspects that is also regarded as the
backbone of the economy. The total quantity of a commodity or service that is desired by
individuals is referred to as demand (Esper et al., 2010). On the other hand, the total quantity that
is offered by a market is referred to as supply.
Figure 1: Demand and Supply
(Source: Esper et al., 2010)
The diagram illustrates demand and supply that acts as the major forces behind allocating
resources. The report will provide an overview about the same market however, it will deal with
a single raw material. The first market will provide a summary about the green fodder market in
Saudi Arabia thus providing a demand and supply analysis about the ban on green fodder. The

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second market will reflect on the impact of green fodder ban on livestock that will be followed
by meat market in Saudi Arabia.
Market 1: Green Fodder
Summary
In order to reduce water consumption, Saudi Arabia has put a ban on cultivation of fodder in this
year. As a result, the total production of green fodder reached a total of 10.34 million however,
the ban has slashed the production by 65 percent. The major cause for banning the production
has been the fact that green fodder crops used up to 17 billion cubic meters of water yearly
(Saudi Gazette, 2018). The ban will save approximately 9 billion cubic meters of water. In other
words, the country has been targeting to save water thus targeting agricultural farms that
cultivates green fodder as well as other unsustainable crop. As a result, the country has decided
to reduce the cultivation of green grass with the help of a Cabinet decision in order to save
precious water.
Demand and Supply Analysis
The ban on green fodder has led to shortage in the market that increased imports in order to meet
the requirements in dairy companies.
Figure 2: Supply Shortage