September 20, 2013

Driven by reasons of not meeting specifications, Saudi Arabia's Ministry of Agriculture has shut down 80% of poultry farms in Madinah.

Several Saudi poultry producers claimed that the ministry was responsible for the closure of these farms under the pretext of not meeting specifications and they argued that the ministry should bear the losses suffered by investors.

Several participants claimed that not all poultry breeds imported from Europe could adapt to Saudi environment. There are, however, breeds from India that can adapt to the Saudi climate, they said.

In order to avoid further losses, authorities have suggested that poultry farmers who suffer losses of more than 30% should shut down.

Poultry farmers at the meeting demanded the establishment of a lobby for poultry producers, stating that poultry projects require high specifications in terms of quality. An increase in tariffs on imported poultry to protect local products, stating that the costs of poultry feed accounted for 70% of the operating costs was also requested.

Fahd Al-Hamoudi, a poultry producer, said the cost of ovulating chicks now ranges between SAR2.3 (US$0.61) and SAR3.7 (US$0.99) as a result of lack of investors in the Kingdom. The price of a single carton had also increased by 35%.

Al-Hamoudi called on the general organisation for grain silos and flour mills to play a bigger role in providing poultry feed to farmers in substantial quantities and reasonable prices in order to eliminate monopoly and encourage competition. He also urged the agricultural development fund to grant long-term loans to farm owners who own factories to help them with their operations. He emphasised the lack of cooperation between the Ministries of Agriculture and Labour in providing labour visas for poultry producers.

Meanwhile, Mohammed Al-Rashid, vice-chairman of the Committee of Agricultural and Food Security at the Chamber of Commerce and Industry in Riyadh, said the closure of more than 80% of factories and poultry farms in Madinah by the Ministry of Agriculture was expected primarily due to rapid urban expansion.