Chicken prices take a plunge in Saudi

DAMMAM: Fierce competition in the poultry industry has led to a fall in the prices of chicken by almost 50 percent in the Eastern Province.

“The competition is reflected in the price levels, with 1 kg chicken selling at SR6 and SR7 as against the previous price of SR12,” an industry source has been quoted as saying by local media.

The market is similar to that of 2012 and 2013, dealers in EP said, adding that competition differs according to the marketing plan of each company.

They confirmed that prices started decreasing during the past weeks especially in companies whose production exceeds 400,000 to 500,000 chickens.

Ashraf Hassan, a dealer said major companies started making attractive offers during the past weeks. “Reduced consumption is one of the major reasons behind the competition.”

He said small companies were force to start the “price game” to maintain their share in the market.

Fathi Al-Saeed, another dealer, said reducing prices wasn’t limited to frozen poultry but extended to live ones. He said lower demand for live poultry led to special offers. “A number of poultry farms market their products confirming that their production capacity exceeds one million birds in a single breeding session.”

He said that poultry companies hope the price correction takes place soon, especially with Ramadan fast approaching.

Ahmad Al-Zaher, a businessman, said preparations for Ramadan started with the signing of contracts with suppliers in the beginning of March to avoid delay in the arrival of goods.