July 19, 2010

Investments in Saudi Arabian poultry reach US$8.55 billion

Total investments in the Saudi Arabia's poultry industry have reached SAR32 billion (US$8.55 billion), according to Abdullah bin Bakr Qadi, chairman of the board of directors of the Cooperative Society for Poultry Producers.

Qadi estimated the total output of the country's 536 farms at 525,000 tonnes. He put annual per capita consumption of chicken in the country at 42kg and eggs at 120.

He urged investors in the poultry industry to strengthen their production capabilities to face foreign competition. He also urged them to coordinate with the society and support it to achieve its objectives.

"The state has been supporting poultry farms by providing loans and supporting projects. The Agricultural Development Fund has given more than SAR1 billion in soft loans to poultry projects," he said, emphasising the need to change some regulations to strengthen the industry.

Oadi said that Saudi Arabia has achieved self-sufficiency in eggs with the production of more than 35 billion eggs annually, in addition to the production of 600 million chickens annually.

Faqeeh Poultry Farms, owned by Abdul Rahman Faqeeh and established in 1965, is one of the largest poultry producers in Saudi Arabia. Faqeeh Poultry intends to invest more than SAR3 billion to boost production over the next five years.

"The farm has developed a five-year plan to boost its daily production to one million broiler chickens and three million table eggs. The plan also aims at creating 6,000 employment opportunities at the farm," said Abdul Rahman Faqeeh, founder and owner of the farm.

The SAR3 billion development plan includes launching new farms, chicken feed factories, model abattoirs and a vast logistic system for the prompt supply of goods to consumers across the country, Faqeeh said.

The entrepreneur, who has been in the poultry business over the past 60 years, said the plan has been laid in response to the sharp rise in demand for poultry products.