June 19, 2009

Iraq's poultry sector is suffering from rising production costs, a decrease in government subsidies and the competitive prices of imports.

In Ninawa province, more than 60 percent of poultry farms have been forced to lay off workers and close down. There were also many farmers who were trying to sell their farms.

Ninawa has the largest poultry infrastructure in the northern area of Iraq. There are more than 200 poultry farms, 12 slaughterhouses, 10 hatcheries, 50 feed grain factories and two wholesale markets across the province.

Farm owners are looking for other sources of income because of the lack of prospects in the poultry industry, said a real estate broker whose agency has been approached by six farm owners who wanted to sell their farms.

Agricultural experts warned that Iraq's poultry industry could be destroyed unless new measures are introduced.

Prior to 2003, the Ministry of Agriculture provided poultry farmers with subsidised chicks and feed grain, as well as medicine, vaccines and fuel. But many of these subsidies have been lifted without warning, and the farmers face a sharp increase in costs and even bankruptcy, according to agricultural engineer Amer Fathi.

Farmers also face fierce competition from imported Brazilian, Turkish and Syrian chickens, which cost considerably less than local chickens.

An official with the state livestock services company, said the real problem is a lack of import restrictions, which saturated the market with imports, not domestic agricultural issues.

If the government wants to end the poultry industry's crisis, it should put an end to illegal imports, the official said.