Saudi Arabia attempts to increase poultry export
Saudi Arabian poultry producers are facing robust competition from imported frozen chickens, despite generous government subsidies and a rising population.
Saudi producers of poultry meat are now searching for export markets elsewhere in the region. Annual consumption of poultry meat in the Saudi Arabia is estimated at over one billion kg/year, and Saudi government support is designed to compensate for the higher local production costs, which in some cases is up to US$580/mt more expensive than Brazilian imports.
Although those in the sector have a growing consumer market and are already protected by a 20% import tariff, Saudi poultry producers continue to lose domestic market share to cheaper frozen imports predominantly from Brazil. Brazilian-led imports now account for 44% slice of the domestic market valued at US$1.6 billion annually.
Producers are fighting back, lobbying government for higher import tariffs and subsidies, but searching strategically for new more lucrative markets now also seems firmly on their agenda. Originally aimed at attaining self-sufficiency, the Saudi government’s support could now encourage new export drives.