December 12, 2022

 

Cold season contributes to increased production costs  for Jordan's poultry sector

 

 

The arrival of the cold season, combined with the global increase in fuel prices, is adding to the burdens of Jordan's poultry sector, increasing farmers' production costs by roughly 20%, according to Hassan Abudaqar, board member of the Jordanian Poultry Producers Association.

 

"Heating systems in poultry farms, which either rely on gas or diesel, are run 24/7 during winter in order to keep poultry birds warm to maintain their health and production levels," Abudaqar told The Jordan Times.

 

The feed conversion ratio (FCR) for poultry also decreases by around five points during winter,  he  added. This means for the amount of feed usually consumed by poultry, there will be less meat produced during winter, he explained.

 

While these factors will increase production costs, the prices of chicken and eggs will remain stable, as they are determined based on supply and demand, according to Abudaqar.

 

He said that chicken is currently sold at a 20% loss.

 

"Many are abandoning poultry farming because costs are exceeding revenues," he added. He also pointed out that the 5% sales tax is "burdening" the sector.

 

"It has become necessary to relieve farmers from this tax, at least temporarily to help them recover from the hike in feed prices," Abudaqar said.

 

He noted that small-scale farmers are the most affected by these costs.

 

"They are selling their products at a loss to food giants and corporate farms," which will eventually monopolise the market, he added. 

 

Other issues facing the sector include smuggling and opening the door for imports, said Abudaqar.

 

 He stated that Jordan is self-sufficient in terms of poultry and egg production.

 

Local farms produce around 800,000 chicken and four million eggs daily, while the needs of the Jordanian market amount to roughly 700,000 chicken and 3.5 million eggs, he added.

 

Abudaqar also pointed out that truckers' ongoing strike directly impacts the poultry production sector.

 

"Poultry require a daily feed ration that is transported to farms through trucks," he said, noting that the strike is causing a disruption in supply chains.

 

- The Jordan Times