Saudi Arabia Poultry and Products Semi-Annual Overview - January 2006

By the USDA, Foreign Agricultural Service - This article provides the poultry industry data from the USDA FAS Poultry and Products Semi-Annual 2006 report for Saudi Arabia. A link to the full report is also provided. The full report includes all the tabular data which we have ommited from this article.
calendar icon 9 January 2006
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Saudi Arabia Poultry and Products Semi-Annual Overview - January 2006 - By the USDA, Foreign Agricultural Service - This article provides the poultry industry data from the USDA FAS Poultry and Products Semi-Annual 2006 report for Saudi Arabia. A link to the full report is also provided. The full report includes all the tabular data which we have ommited from this article.

Report Highlights:

In calendar year 2006, Saudi Arabia’s poultry meat production is forecast to reach 490,000 metric tons (MT), an increase of 2 percent compared to the expected 2005 level of 480,000 metric tons. Poultry meat imports for 2006 are expected to reach about 440,000 MT, a two percent increase compared to the 2005 level.

Poultry Production

Saudi Arabian poultry production and import estimates for CY 2005 and CY 2006 remain unchanged since our 2005 Poultry Annual report (GAIN Report number SA5014). In calendar year 2006, the Kingdom’s poultry meat production (mainly broiler meat) is forecast to reach 490,000 metric tons (mt), an increase of 2 percent compared to the expected 2005 level of 480,000 metric tons. According to the Ministry of Agriculture (MOA) and poultry farmers, the expected increase is based on the continued expansion of existing producers, and the expected operation of newly licensed poultry farms. Poultry meat imports for 2006 are expected to reach about 440,000 MT, a two percent increase compared to the current year.

Production, Supply and Demand Table

Frozen Broiler Meat Imports

The Saudi Arabian government’s decision to impose an import ban on Chinese poultry products about two years ago and the continued appreciation of the euro compared to the U.S. dollar have continued to bolster Brazilian frozen broiler meat exports to the Kingdom. According to local importers, Brazilian frozen broiler meat exports this year are expected to increase by at least 10 percent compared to the 2004 export level of 333,223 metric tons. France, the second largest broiler meat exporter to the Kingdom, is expected to lose significant market share to Brazil this year compared to last year. In 2004, France exported 82,981 metric tons of frozen broiler meat to the Kingdom.

The C&F prices of Brazilian frozen poultry meat exports to the Kingdom have begun to decrease from high of $1,490 per MT in November 2005 (highest price ever reported) to $1,450 mt in December 2005, a decrease of about 3 percent. The prices for French chickens are similar to those for Brazilian birds. A further $30 to $50 decease in Brazilian broiler meat prices is expected in January/February 2006 due to higher stocks of frozen meat available in the Saudi market, contributing to a lower demand and increased offers by Brazilian exporters to supply at more competitive rates. Major Saudi broiler meat importers claim that Brazilian exporters are currently holding higher than normal stocks, which they want to reduce, due to some difficulties they are facing in exporting to Iraq and Iran.

Ban on Live Poultry Imports

On November 12, 2005, the Saudi Arabian government imposed an import ban on live birds from all countries to prevent any likelihood of importing live birds that might carry avian influenza (AI). The ban, which was implemented immediately, does not include imports of day-old chicks and hatching eggs that are produced in professionally supervised projects. That means, U.S. exports of day old chicks and hatching eggs to Saudi Arabian, valued in 2003 at more than $4.2 million, will not be affected. No data are available for 2004 due to an import ban in place at that time on live birds, baby chicks and hatching eggs.

The Saudi move is an apparent response to the November 2005 discovery of two birds in Kuwait infected with bird flu. According to the Saudi Ministry of Agriculture’s (MOA) report, a pet bird (falcon) imported from East Asia and a flamingo living in a private marine chalet in Kuwait were tested positive for AI. In addition to banning imports of live birds, the decree authorized the MOA to immediately destroy all live birds recently imported via any of the Kingdom’s ports of entry.

Before issuing the recent decree, the Kingdom had on various occasions banned imports of live poultry and poultry products from countries that reported cases of AI. Over the past two years, the Kingdom has banned imports of live poultry and poultry products from the following countries: China, Hong Kong, Vietnam, Thailand, Malaysia, Indonesia, Cambodia, Laos, Kazakhstan, Mongolia, Japan, Turkey, Romania, South Korea, Pakistan, and Russia. The MOA has intensified its monitoring activities of 500 poultry farms in various parts of the Kingdom. The recent royal decree provided more than five million dollars to enable the MOA to purchase standby incinerators for its 25 quarantine centers to immediately destroy any imported live birds.

The following table shows U.S. poultry and
egg exports to Saudi Arabia for 2003


Note: no data is available for 2004 due to import ban in place at that time on live birds, baby chicks and hatching eggs.

List of Articles in this series

To view our complete list of 2006 Poultry and Products Semi-Annual reports, please click here

Source: USDA Foreign Agricultural Service - January 2006
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