Ahead of the introduction of value-added tax scheduled in 2018, a leading Dubai-based integrated poultry company has announced steps to boost its production efficiency, increase output and expand into new overseas markets.
Speaking at the recent Gulfood trade show, the chief executive of Al Rawdah, El Rashid Dafalla Mohamed, told The National that the company aims to absorb the cost of the new tax by increasing its total sales. Last year, turnover increased 8 percent to AED200 million (US$54 million), he said, and further growth of 7 to 10 percent is the target for the current 12 months. The firm is also aiming for greater efficiency, with more feed-efficient birds, and water- and energy-saving measures.
In addition to these cost-savings, Al Rawdah – also known as Emirates Modern Poultry Co. -- is looking to expand its markets into Iraq and Africa. Despite the challenging competition posed by the strong U.S. dollar, Mohamed says the firm’s business in countries such as Jordan and Lebanon will not be significantly impacted, and new products under the Al Kabeer brand name are scheduled to be launched in those countries in the coming months.
In future expansion plans, Al Rawdah is set to open a processing plant in Jeddah, Saudi Arabia, in April this year.
According to the company’s web site, Al Rawdah was founded in 1994, and its modern poultry farm near Dubai can process up to 45,000 birds per day. Halal production is guaranteed, and the firm’s fresh chicken and processed meat products have a 35 percent share of the United Arab Emirates’ market. Products include fresh and frozen chicken, meat products, ready meals, and eggs, and it supplies leading retail sectors, as well as catering and hospitality businesses.
In April 2016, Al Rawdah announced a significant investment in a new poultry farm in the Liwa area of Abu Dhabi. According to The National, the firm has already invested AED60 million (US$16 million) in the feed mill at the site. With the first stage of construction due to be complete by the end of this year, the feed mill will eventually produce up to 30 metric tons of feed per hour – half of this for chickens, and the rest for camels, cows, goats and sheep.
According to the statistics group with the United Nations’ Food and Agriculture Organization, FAOstat, chicken meat production in the United Arab Emirates was 42,258mt in 2013, the most recent year for which figures have been published.
