Saudi Poultry Show to highlight potential for expansion

Organizers of the upcoming Saudi Poultry Show 2015 aim to encourage investment in production in the Kingdom to reduce its dependence on imports of poultry products.
Current estimates put investments in the Saudi poultry sector at around SAR65 billion (US$17.4 billion), according to the organizers of the upcoming Saudi Poultry Show 2015 in Riyadh. There is promising potential to expand by a further SAR62 billion (US$16.5 billion), according to organizers, Zoom Expo.
The poultry industry in the Kingdom of Saudi Arabia enjoys significant support from the state to help address stiff competition from imported products. Loan and facilities are provided in order to realize food security in the Kingdom.
Chicken production by the country’s farmers covers around 42 percent of Saudi consumption, which is about 1,044 million metric tons. Demand is mainly met by imports. In 2013, Brazil provided Saudi Arabia with 79 percent of total poultry imports, followed by France with 18 percent and the U.S. with 3 percent. Domestic production of chicken amounted to 640 metric tons in 2014, 7 percent more than the previous year. In 2013, KSA was the world’s largest importer of chicken with total imports of 875,259 metric tons.
Poultry consumption in the Kingdom is among the world’s highest at 47 kilograms per person and year, while it ranks a global 3^rd in poultry products consumption with 5 billion eggs and more than 950 million head of chicken per year. Annual sales of chicken products are valued at around SAR17 billion (US$4.5 billion).
Saudi Poultry Show 2015 will be held November 25- 27, 2015, at the Riyadh International Convention and Exhibition Center. Show organizers say that this is the only poultry sector exhibition in the Kingdom and offers the largest gathering of specialist suppliers in one place with the aim of highlighting the latest technology, techniques and products for this important sector.

HatchTech to build another hatchery with Al Bayad Farms

HatchTech and Al Bayad Farms have signed a contract for the installation of a turnkey hatchery facility located 150 km south of Riyadh, Saudia Arabia. This facility will be equipped with MicroClimer Setters and Hatchers, as well as support systems for cooling, heating and ventilation. To ensure optimal body temperatures and to prevent dehydration during storage, Al Bayad has chosen to use HatchTech’s unique Chick Storage Room with laminar airflow technology. When operational, the hatchery will have an annual capacity of 52 million incubated eggs.
According to Dr. Ahmad Al Thonayan, President of Al Bayad Farms, “It was a logical decision to select HatchTech as partner for this project. Al Bayad Farms’ mission is to produce superior day-old chick quality in order to reach maximum genetic potential in the field. We are convinced that the unique technology of HatchTech, in combination with their extensive knowledge gained from research, provides the best solution to achieve our goals of excellence”.
HatchTech and Al Bayad Farms have been close partners since 2007, when they first teamed up for the construction of a turnkey layer hatchery.

Saudi poultry integrator Arasco Foods invests in software

One of the leading poultry businesses in the Middle East, Arasco Foods, has signed an agreement with MTech Systems to purchase computer software for its integrated activities. The agreement provides a full suite of modules covering parent stock breeder production through to hatchery, broiler growing, processing and logistics operations.
“We shall be providing a complete vertical software solution for Arasco Foods in Saudi Arabla,” said Jim Johnston, director of MTech Systems Europe. “Arasco will be implementing our full suite of modules right through to transport of finished goods to market.  Interfacing with the group’s existing SAP ERP system, our software will provide key performance information, costings, volume forecasting and production planning.’
John Ross, president of Arasco Foods, said the new solutions and software would automate all their data and procedures in just one system, helping to enhance their competitiveness and future development.
“Our aim is to upgrade the data and be able to access it easily and timely which will be reflected in the financial control and monitoring, in planning quality and in helping us to make the right decision at the right time,” he stated.
Ross added: “The MTech software will give us the visibility we require in performance reporting, costings and forward planning that will assist us greatly in driving efficiencies to improve our overall business performance.”

Saudi Arabia government opens poultry trade with Pakistan

The Saudi government has granted permission for Pakistani poultry and poultry products to be imported, Pakistan Poultry Association Chairman Dr. Muhammed Aslam told journalists. With the removal of the trade barrier, Pakistan is now allowed to ship chicken, hatching eggs and day-old chicks into Saudi Arabia.
Aslam said the move to allow poultry trade between Saudi Arabia and Pakistan will have a substantial economic impact on Pakistan and the Pakistani poultry industry. According to Aslam, a Saudi delegation visited poultry farms, hatcheries and feed mills located throughout Pakistan. Meetings between Saudi and Pakistani officials helped the Saudi delegation deem the Pakistani poultry products suitable for import.

Al Watania, Cobb extend partnership in Saudi Arabia

Al Watania Poultry, the largest broiler producer in the Middle East, has signed an agreement with Cobb Europe for the establishment of a grandparent operation in Saudi Arabia to supply its own broiler breeder requirements.
This operation will be initially designed to produce and hatch two million Cobb500 parent stock per year. With this agreement Al Watania and Cobb strengthen their partnership which exists in both Saudi Arabia and in Egypt, where Al Watania produces over 4.5 million Cobb500 parent stock per year and has helped Cobb in becoming the market leader for the last four years.
The contracts were exchanged between Al Watania’s chief executive officer Dr Mohammed Al-Rahji and Cobb Europe’s sales and technical director Pelayo Casanovas. Also present for Al Watania were chief finance officer Essam Al-Hodeithy and Eng Rabea, grandparent general manager, and for Cobb Mohammed Chail, Middle East business development manager.
“We admire Sheikh Suleiman and Dr Mohammed Al-Rahji for their continued commitment to supply high quality, affordable chicken meat to the Middle East,” said Mr Casanovas. “With this agreement we strengthen a partnership that will maintain Al Watania and Cobb as key players in this market.”
Al Watania currently produces a total of 4.6 million broilers per week, has a well-recognized brand and continues to find opportunities to grow in other parts of the Middle East.
“The organisation has great confidence in the economic advantages of the Cobb500 package, which delivers benefits to every level of the integration and currently represents over 80 percent of the volume of chickens produced by its operations in Saudi Arabia and Egypt,” said Mr Casanovas.
“Al Watania has been a loyal supporter of Cobb for more than 15 years. I delivered the first broiler hatching eggs and first breeders when they were starting in poultry business 30 years ago, and I am delighted to see them grow to become the leader today” added Mohammed Chail.

Saudi Arabia lifts ban on chicken exports

Saudi Arabia has lifted its ban on chicken exports, but the country's Ministry of Commerce and Industry has said that exporters must abide by the rules for exporting subsidized goods.
Poultry farms wanting to export should return the subsidy of SR 2,000 (US$533) per ton, said the ministry. The ban was previously implemented due to rising poultry prices in the local markets. The ministry has emphasized the need to meet local demand for all goods and ensure the supply of products at reasonable prices.

Almarai to invest in poultry sector, create jobs

Saudi Arabian company Almarai plans to invest SR 4 billion (US$1.07 billion) in the country's poultry sector in the next five years, expanding an industry that currently meets only 56 percent of domestic demand, according to CEO Abdulrahman A. Al-Fadley.
Overall, Almarai intends to increase its investments to SR 15.6 billion (US$4.16 billion) and employ 12,000 Saudi nationals at its various factories and sectors. In addition to poultry, the company's investments include dairy (SR 2 billion — US$533.3 million) and a baby milk plant (SR 1 billion — US$266.7 million). Almarai is also involved in the University Students Co-operation Training program. The company has more than 4,700 Saudi employees on its payroll, and career development programs equip Almarai employees with more technical skills to enable them to increase their efficiency, said Al-Fadley.