Challenges Facing the Poultry Industry in Kuwait
Mohammed Ibrahim Al-Fraih, a poultry industry advisor in Kuwait, stressed the importance of increasing government support in the form of subsidized feed for broiler and layer chicken farmers, warning that this vital food industry could grind to a halt if government support is not increased and the Ministry of Commerce and Industry insists on keeping prices for chicken meat and fresh eggs at their current levels, which have remained unchanged for several years.
Agricultural engineer Mohammed Al-Fraih explained in an interview with Al-Siyasa that “since 2008, a tray of Kuwaiti eggs has been sold in consumer cooperative markets for one dinar, without any increase to match the global rise in poultry feed prices... In terms of numbers, he says: They set the price of a plate of eggs at one dinar when the price of a ton of corn was around 30 dinars and a ton of Indian soybeans was around 70 dinars, and both of these make up 90 percent of the feed for broiler and layer chickens. Now it is 2012, and the price of a ton of soybeans has reached 258 dinars, while the price of a ton of corn has risen to 98 dinars. How can the price of a tray of eggs and the price of fresh chicken remain stable after this rise in feed prices, just as they were about four years ago?!
Al-Fraih emphasized, “In light of this, poultry farmers in Kuwait have been suffering heavy daily losses for several months now… and in my opinion, they will not be able to sustain this for the next few months… unless government support for them is increased, either by providing subsidized feed or by the Ministry of Commerce and Industry allowing them to raise the price of a plate of eggs to more than two dinars… He pointed out that the current government pricing for chicken sales is ill-conceived, fails to keep pace with the rise in global feed prices, and is inconsistent with the free-market policy in effect in developed countries—which relies on supply, demand, and commercial competition.
Local is better than imported
Al-Fraih added that Kuwait cannot rely on imports in the vital poultry industry for the entire population, because imported eggs are expensive, scarce, and, most importantly, will not be as fresh or nutritious as the high-quality local product. The solution, as seen by this expert with over 38 years of experience in the food and agricultural industries, lies in the government giving greater attention to the food supply for Kuwait’s population and allowing price liberalization in line with the increase in feed costs, which has reached 300 percent to date.
Al-Fraih attributed the steady rise in feed prices to improved living standards in populous nations like China and India, which has led their populations to consume more red and white meat than before. Another factor is the use of corn as biofuel for machinery in some countries. Compounding the problem is the drought affecting two-thirds of the United States, particularly in the central and northern states, which has destroyed approximately 38 percent of the corn crop and about 30 percent of the soybean crop to date, while also degrading their quality to second and third grades.
Al-Farih emphasized, “The situation is very serious, and the proof is that we have three companies considered among the largest poultry producers in Kuwait who have clearly and explicitly informed the Ministry of Commerce and Industry that they are forced to halt production if support is not provided and the appropriate conditions are not created for them to continue production, as no one can produce amid successive financial losses.” He noted that this vital industry receives significant attention from many countries, perhaps most notably and closest to us, our sister country the Kingdom of Saudi Arabia, where the government covers 75 percent of the cost of imported feed.
Al-Fraih suggested in this regard that Kuwait import soybeans in bulk rather than in bags to reduce expenses or lower costs, but this would require special storage facilities and equipment at Kuwait’s Shuwaikh Port.
Food Security Projects
Meanwhile, the well-known agricultural advisor Mohammed Ibrahim Al-Fraih criticized the government’s decision to increase the prices of agricultural vouchers—especially those allocated for poultry farming in Kuwait—by several times their previous rates, expressing his surprise that companies holding these vouchers receive support from one government agency only to have a second government agency then double their fees!
He also strongly criticized the distribution of small plots, particularly for food security projects involving sheep and poultry farming, saying: The ideal plot for sheep and livestock farming is a vast plot suitable for growing alfalfa and other green fodder to feed the animals. This is difficult to achieve with a plot of 50,000 square meters in Abdali, for example; the matter requires plots of millions of square meters, not thousands!
This applies equally to poultry farming or processing projects in the country; it is of the utmost importance that this vital industry be concentrated in the Shagaya region rather than among vegetable farms in Al-Wafra and Al-Abdali, and that it be established on vast tracts of land.
Al-Fraih emphasized the importance of allocating plots for achieving food security through chicken and eggs to serious, experienced companies rather than to ordinary individuals who come forward with studies claiming economic feasibility, and he said: The idea of establishing projects to achieve food security in the country through red meat is a sound one, but it will not be realized without an adequate supply of irrigation water for growing alfalfa and vast tracts of land. He illustrated the difficulty of this in Kuwait by saying: We have a study showing that producing 16,000 tons of wheat requires 400 hectares, and one hectare is 15 dunams—that is, 10,000 square meters. More importantly, producing 16,000 tons of wheat “requires 10 million cubic meters of water. Is this amount available for Abdali?!”
According to officials in charge of treated water, Kuwait’s production capacity is 200,000 cubic meters per day for Abdali and the same for Wafra, with 400,000 cubic meters allocated for other inland areas and external routes… noting that it has not yet reached Wafra, or if it does, it is intermittent… Our agricultural problem in the Gulf is primarily a water problem. For your information, our sister country, the Kingdom of Saudi Arabia, is moving toward halting the expansion of fodder cultivation or production due to the depletion of its strategic water reserves. This means we will remain dependent on imported fodder, and fodder prices are steadily rising. Private companies cannot bear these costs without adequate government support. Government support for the food and agricultural industries is crucial, bearing in mind that this support is not only for farmers and livestock breeders but also for consumers.
I would like to point out that the United Arab Emirates imported green alfalfa feed from other countries to feed its livestock because it found that importing green feed was cheaper and better than producing it on its own land.
The Ration Card
In his lengthy interview with “Al-Siyasa,” former board member of the General Authority for Agriculture and Fisheries Affairs, Mohammed Ibrahim Al-Fraih, concluded by emphasizing the importance of allocating support for local poultry and eggs, just as is done in the fields of cattle breeding and fresh milk production. Just as fresh milk is distributed via the ration card, he proposed that (local) eggs and poultry be distributed to citizens via the ration card, thereby saving effort for consumer cooperatives and reducing the increasing financial burden on Kuwaiti consumers.