September 13, 2005

USDA: Annual poultry meat report 2005

In CY 2006, Kuwait's broiler meat production is projected at 35,000 Metric Tons (MT), representing a 6 percent increase over the 2005 production expectation of 33,000 MT. The poultry-farming sector appears to have recovered from earlier setbacks resulting with producers more optimistic about the future.

Two major producers account for 75 percent of the local production, while a third smaller producer accounts for another 15 percent. 5-6 small producers provide the balance of production. 

Of local broiler production, sixty percent is marketed as live, 5 percent as chilled and the balance as frozen. Demand for live chickens, mainly from Kuwaiti nationals, is declining due mainly for practicality reasons and for hygiene concerns.

CY2003 is the latest year official trade statistics are available. Major poultry importers advise that import performance continues strongly. Demand from southern Iraq continues to spur on the re-export market. 

Brazil remains the principal supplier, dominating both the whole bird and parts markets. The US share of the parts market is increasing gradually with demand for leg quarters spurred on by the Iraqi market.

Local broiler production does not directly compete with imported broilers. Frozen local whole chicken retails at prices 50-60 percent higher than imported frozen chicken. 

Local chilled chicken retails at prices more than double that of imported frozen chicken. Price differences are driven by high production cost, as most inputs must be imported. 

One of the two major poultry operations produces 1.5-2.0 million quails annually, marketed mostly as chilled. Finally, one smaller farm produces about 100,000 ducks annually, marketed mostly as live, and to lesser extent, as chilled.

For the full USDA report, click here.