April 5, 2007

Saudi Arabian poultry producers face stiff Brazilian competition
 

Despite generous government subsidies and a growing population, Saudi Arabian poultry producers are facing stiff competition from Brazilian imports that currently account for 44 percent of the US$1.6 billion domestic chicken market, according to the USDA Foreign Agricultural Service Annual Report.

In response, some broiler meat producers are on the lookout for other export markets within the region to help boost their sales. Target export destinations include Qatar, Bahrain, Kuwait, UAE, Oman and Yemen. Many have also lobbied the government for higher import tariffs and subsidies. 

The Saudi government has been providing significant support to the poultry sector to compensate for higher domestic production costs. Besides giving grants to new and extended poultry farms, producers also receive 25 percent towards the cost of certain capital equipment.