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Rise in chicken price irreversible: Minister
Published in The Saudi Gazette on 21 - 09 - 2012


Faleh Al-Dhubyani
Okaz/Saudi Gazette

JEDDAH — The Minister of Agriculture has admitted there is a shortfall in the production of chicken, which currently only meets 45 percent of local demand.
Fahd Balghunaim said the rise in the price of chicken is irreversible due to the shortage of production and growing demand.
He said the ministry had nothing to with the increase in prices, adding they were governed by supply and demand and the competition between the dairy companies.
Discussing the skyrocketing prices of local sheep such as Al-Harai, he added: “I wonder why citizens are insisting on certain local meat whose prices have reached astronomical levels. The prices are jumping every day even though consumers have access to a wide range of alternatives such as Barbari, Somali and Australian meat.”
He said there are certain factors that led to the rise in prices of dairy and meat products, especially chickens. The rise is mainly attributed to the increase in the prices of fodder and speculation in the international markets.
Another significant factor is that the local production of poultry will satisfy less than 45 percent of local consumption.
In order to overcome this problem, local production will need to increase by 90 percent. He said the ministry encourages local investors and companies to increase production and generously supports farmers and others who invest in poultry and animal breeding.
Apart from this, the ministry encourages investors to establish cooperative societies. He said these measures could help in increasing production and reduce prices.
He said the government is working on handling the root causes of the problem, mainly the growing increase in the prices of fodder and livestock.
He said it is expected production will improve in the next five years, bringing down prices.
The ministry is also working on an integrated program to eradicate livestock diseases.
He said the ministry overcomes the shortage of the poultry products through imports and local merchants.
Discussing rumors that chickens are fed with growth hormones and antibiotics, he said: “I swear by Allah that our chickens are hormone and antibiotics free.
“Some people claim that the chickens' breasts are large because of the hormone. This is completely false and untrue. These rumormongers should understand that the ministry has food security teams who test chickens as part of our surprise inspections.”
He said some people's claims that children whose chests are abnormally inflated because they consume chicken fed with growth hormones were completely untrue.
“This is absolutely wrong as these children suffer from symptoms of malnutrition. We have neutral consultation houses and experts from universities who visit the poultry farms and supply us with reports that all confirm the products are safe.”
He said the ministry has 400 veterinarians who monitor about 200 poultry farms in accordance with international standards.
The ministry plans to increase this number to 4,000 vets.
He said the ministry had fined a poultry farm SR300,000, not because it was using hormones, but because it disposed of its waste in an unhygienic manner.
He said sheep that cost at least SR1,800 per head include the Al-Harai, Al-Najidi and Al-Naimi varieties.
He said there are other alternatives such as Barbiri, which is also imported from abroad.
He said some people mistakenly think that the Barbiri sheep is only eaten by poor people, the Australian variety is for wool and the Somali sheep is weak and small.
“These are stereotypes because the ministry has scientific specifications for imported livestock such as its age.”
He said this raises a crucial question on why consumers insist on certain types when they have many alternatives and choices.
He added: “If we reduce the consumption of these inexplicably popular types of sheep, prices will fall significantly. One kilo of Harai sheep is sold for SR100. The rise in the prices of these sheep types is unjustifiable.”
He said the ministry could not do anything to curb prices and urged people to look for alternatives.
Discussing the prices of tomatoes, which have touched SR24 a crate, he said production costs are very high and the ministry also has to protect the merchants' interests.
He said it is a common economic principle that the prices of any product falls when production is high, adding the ministry has been exerting efforts at local and international levels to achieve food security.
He said it is investing with local and foreign partners in Vietnam, Ethiopia, Sudan and Ukraine so it can import agricultural products from these countries.
Asked if consumers will wait a long time until prices come down, he responded: “We know the interest of our citizens very well. We ministers are paid to help the citizens. If we fail to serve them, we don't deserve to remain in our chairs.
“After the Council of Ministers' session on Monday I went downtown to see the prices of fish at Al-Bangla market. I found prices were good.”
He added Saudi citizens are enlightened but do need to learn to buy sensibly. He said imports would not curb the soaring prices of tomatoes and meat.


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