What's new ? - 2018

What's new ? - 2018

Saudi Arabia: the poultry market

GAIN Report Number: SA1811 8 November, 2018

Total Saudi chicken meat production is expected to fall to 650,000 MT in 2018, significantly lower than the 2017 production estimate of 790,000 MT. Domestic chicken meat production in 2019 is expected to increase slightly to 700,000 MT. The production cost of locally produced chicken meat currently ranges between $1.6 and $1.87 per Kg of average dressed weight. Saudi Arabia is a surplus table eggs producer and a significant exporter to the GCC countries (Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman).
Estimated domestic chicken meat consumption in 2017 is reduced to approximately 1.27 million MT. The three main reasons for the decline in estimated chicken meat consumption in 2017 are reduced demand by catering companies, lower estimated production, and the departure of several thousands of expatriate families.
Saudi Arabia’s 2018 chicken meat imports are estimated at 575,000 MT, a decrease of 19 percent from 2017. The main cause of the decline in Saudi Arabia’s total chicken meat imports is the Saudi Food and Drug Authority’s (SFDA) ban on electrical stunning in poultry slaughtering. The new requirement, which was fully enforced in June 2018, has substantially reduced the quantity of chicken meat exported to Saudi Arabia by Brazil, the dominant poultry meat supplier to Saudi Arabia. The requirement has also eliminated U.S. poultry from the Saudi market. In 2019, total Saudi chicken meat imports are forecast to reach 675,000 MT.
Saudi Arabia’s 2018 chicken meat exports are estimated at 10,000 MT. The main reason for the sharp drop in Saudi chicken meat exports is the import ban placed on Saudi chicken meat imports by the GCC countries because of the discovery of highly pathogenic avian influenza in major chicken meat producing provinces beginning at the end of December 2017. The Saudi government provides assistance to domestic poultry farms to increase local chicken meat production; they have a target of 60 percent of consumption by the end of 2020. The current self-sufficiency ratio is unknown. The ban on poultry stunning implemented earlier this year reduced chicken meat imports; supplying countries have not been able to meet demand.