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Why is our poultry industry unable to fulfill demand?
Published in The Saudi Gazette on 02 - 10 - 2012


Salem Saeed Baajaja
Okaz newspaper


PRICES of poultry have risen substantially over the past several days: there has been a 40 percent increase in domestic market in less than a week. The price rise has seen varied reactions from owners of chicken distribution outlets. They have emphasized the fact that there has been an increase in demand for imported chicken in the wake of a fall in the local production of broiler chicken. The increase in demand for imported chicken has in turn pushed prices up in their respective countries of origin.
Another reason for the price hike — as the minister of agriculture recently pointed out — is that there has been an increase in the prices of poultry feed. The price of wheat reached $400 and maize was going for a similar price. Both of these grains are major poultry feeds and represent more than 65 percent of the cost of poultry farming.
A ministerial committee for food supplies, comprising representatives of the ministries of finance, commerce and industry, and agriculture is currently exploring the prospect of re-introducing poultry feed subsidies as part of measures to bring down the prices of poultry. In fact, the quantity of local production of white meat represents only 45 percent of the volume of domestic consumption. Hence, local production must be raised to at least 80 percent of the total demand for poultry meat.
Although there are a number of poultry farms such as Fakieh Poultry Farms, Al-Watania Poultry, Al-Gharbia Poultry, Asyah Chicken, and some other farms, they are not sufficient to meet the growing demand for white meat following a hike in prices of red meat.
Hence the question, why didn't we establish new poultry farms in the pattern of the existing ones? Since poultry farms are profitable projects in view of the continuous and consistent demand for the products of egg laying hens, broiler chickens and eggs, we are in need of more local poultry industries to meet the growing demand for white meat.


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