RIYADH, 12 November 2002 — The Ministry of Commerce has decided to wait until an anti-dumping bill is passed by the Shoura Council before taking action on the demand of local poultry farmers to raise the customs duty for imported poultry, according to an informed source.
Leading poultry owners have, however, renewed their demand to double the customs duty for imported chicken from SR1 as a temporary measure until a new decision is made.
Flooding the market with imported chicken has caused them considerable damage, they claimed.
The Commerce Ministry has officially demanded that the local poultry companies substantiate their objection against market flooding and consequent damages suffered by them so that the ministry can take steps to protect their interests.
The farmers demand a government move similar to the stoppage of subsidy to sugar imports following complaints from local sugar manufacturers against market flooding.
Currently, final touches are being given to anti-dumping regulations. Steps are also under way to counter charges against Saudi companies of market flooding in certain countries.
Chicken imported from France carried 50 percent price margin and Brazilian chicken 23 percent against the local products forcing local manufactures out of the market, according to a study made by the poultry farmers’ society.
The farmers also complain about shortage of slaughter facilities in the regions they operate, failure in fighting diseases and low price of live chicken, apart from lack of specialized marketing agencies.
A study conducted by the agricultural division at the Riyadh Chamber of Commerce and Industry also confirmed that market flooding was the most difficult problem faced by poultry farmers.
The study also found that there are 288 broiler chicken projects with an annual production capacity of 430,000 tons while the annual market demand is estimated at 765,000 tons.
The poultry farmers’ society also demanded that the government formulate long term policies to protect their interests
They also want some restrictions on hatcheries which import eggs from foreign countries, to stop genetic diseases from being transmitted.
