February 13, 2004
Saudi Arabian Poultry Production Unchanged
Saudi Arabian poultry production and import estimates for CY 2003 and CY 2004 remain unchanged since our 2003 Poultry Annual report (GAIN Report #SA3009). This year, the Kingdom's poultry meat production (mainly broiler meat) is forecast to reach 530,000 metric tons, an increase of 2 percent compared to the expected 2003 level of 520,000 metric tons. According to the Ministry of Agriculture and poultry farmers, the expected increase is based on the continued expansion of existing producers, and the expected operation of newly licensed poultry farms.
Trade
Saudi Ministry of Commerce (MOC) recently banned imports of chicken meat from China, Vietnam, South Korea, Indonesia, Taiwan, Thailand, and Pakistan due to the spread of bird flu in those countries. Similarly, the Saudi Ministry of Agriculture banned imports of live birds from the aforementioned countries as well as from Guinea, and Ghana for the same reason. On Nov. 5, 2003, the MOA imposed a ban on the importation of live U.S. birds including day-old-chickens out of fear that they might be infected with the West Nile Virus.
Currently, the Kingdom relies on imports to satisfy about 41 percent of its total domestic broiler meat consumption. Estimates for broiler meat imports, both whole and parts, in calendar year CY 2003 and CY 2004 are not changed from the August estimates: 390,000 MT for 2003 and 395,000 MT for this year. Imports are overwhelmingly whole broilers and are all frozen.
With as estimated 60 percent market share, Brazil remains the dominant supplier of frozen chicken meat to the Kingdom, followed by France and China. According to major poultry importers, the C&F prices of Brazilian and French frozen broiler meat, which was USD 1100 and USD 1150 per metric tons in January/February is expected to go up at least by USD 100 in March due to the increased demand for Brazilian and French chicken from Japan and EU countries as a result of the bird flu epidemic in Asian countries.
Source: USDA
