Over recent years, Saudi Arabia has successfully increased its rate of self-sufficiency in poultry meat production.
In a move aimed to achieve food security, this measure has risen from 45% in 2016 to 68% this year, according to the Saudi Press Agency (SPA). By 2025, the Kingdom’s target is 80% — or production of 1.3 million metric tons of chicken.
To achieve this next goal, an expansion plan has been launched by Abdulrahman bin Abdulmohsen Al-Fadhli. As Minister of Environment, Water, and Agriculture, he announced additional investment of 17 billion riyal (SAR; US$4.5 billion) into the Agricultural Development Fund.
According to SPA, the Fund may be accessed for poultry expansion to provide 70% of the cost in investment in modern technology.
Part of the Kingdom’s Vision 2030, the funding aims to support initiatives by the private sector towards greater economic development and the growth of Saudi Arabia’s gross domestic product (GDP).
Recent growth in Saudi poultry output
Based on information from the Ministry and local producers, the U.S. Department of Agriculture (USDA) Foreign Agricultural Service (FAS) forecast Saudi Arabian chicken production of 910,000 metric tons (mt) in 2021. This was up from 900,000mt the previous year.
As a result of major expansion by the Kingdom’s largest poultry company, Al Watania Poultry Farm, FAS expected output to be significantly higher for 2022. Furthermore, the mortality rate of broiler chickens has been brought down to just 6%.
Saudi retailer commits to local sourcing of eggs
One of the largest retailers in Middle East and North Africa (MENA) region has agreed to source eggs from Saudi Arabian producers.
According to Saudi Gazette, a Memorandum of Understanding (MoU) was signed this week by the LuLu Group and the Saudi Egg Producers’ Association.
Under the agreement, Saudi egg farms will directly supply eggs to the 27 LuLu hypermarkets and retail outlets in the Kingdom.
For the Association’s Cooperative Association Head Abdulaziz Al Sheikh, the agreement supports Saudi agribusiness, and provides its members with access to a larger customer base.
“Eggs are popular, easy to digest and a rich source of protein and minerals” said Shehim Mohammed, director of LuLu Saudi Hypermarkets. “This MoU also makes it possible for us to offer the best eggs and support Saudi agriculture.”
Latest developments in Saudi Arabia’s poultry industry
At the end of 2021, an analysis of the nation’s poultry sector highlights its continued expansion.
While Saudi Arabia will remain reliant on imports of chicken in the near term, the authorities there imposed restrictions from some suppliers last year. As result and local preferences for home-produced poultry, import volume was down 16% year-on-year.
Earlier this month, it was reported that U.S.-based Tyson Foods and Tanmiah Food Company of Saudi Arabia had entered into a strategic partnership regarding investment in two of the latter firm’s subsidiaries.
Furthermore, Brazil-based BRF has announced it had inaugurated a new poultry plant at Dammam in Saudi Arabia.
