Page 42 - AA 2024

Saudi Arabia

the Kingdom’s overall consumption.
Similarly, in 2023, Brazil-based BRF
launched a new joint venture in Saudi
Arabia through one of its subsidiaries to
meet the country’s aim of halal chicken
production.

• The production of poultry meat is
anticipated to increase because of the
initiatives taken by the Saudi Ministry
of Environment, Water, and Agriculture
(MEWA) and the Saudi Food and Drug
Authority (SFDA). The ministry aims to
provide various incentives up to USD
187 million annually. Under Vision
2030, the government encourages
foreign companies to invest in poultry
farms with 100% ownership of local per capita consumption, are key drivers imports of low-priced finished goods
farms. Through this move, production for the rise in prices and production. from neighboring countries, breeding
is expected to increase by 80% in 2025 The government’s Vision 2030 aims
and 100% in 2030. The Saudi Food and to achieve 80% self-sufficiency in the farms, hatcheries, grow-out farms, and
Drug Authority restricts the export and poultry sector by providing subsidies processing facilities. These localized
import of poultry meat to boost local for animal feed, interest-free loans, factors are expected to help maintain
production.
rebates on the purchase of specific prices sustainably and achieve self-
Poultry prices saw a hike to com- poultry equipment, protection against sufficiency.
pensate for the rise in production
costs
• The prices of poultry meat increased
by 7.84% from 2017 to 2022 in Saudi
Arabia. Poultry meat is one of the most
consumed animal proteins in Saudi
Arabia. In 2022, prices increased to USD
3,426 per ton, mainly due to increased
dependency on poultry feed from other
countries like Brazil and France. Almost
80% of the poultry meat is currently
produced by 12 businesses, including
three major firms and seven medium-
sized firms. National Company, the
biggest meat producer in the region,
accounts for one-third of domestic
production, followed by Fakeeh and
Almarai.
• In January 2022, national poultry
companies increased the price of
their products by USD 0.1 per chicken,
making a 1,000-gram chicken cost
around USD 4 instead of around USD
3.8. The high cost of production is cited
as one of the main justifications for the
decision to raise prices, along with
the rise in fuel costs following Saudi
Aramco’s decision to increase the price
of diesel by 21%, making a liter cost
around USD 16.7 as opposed to USD
13.80.
• An increase in the demand for low-
cost protein sources like poultry meat,
along with increases in population and
40 Arab Agriculture 2024