The Poultry Industry in the Arab World: Present & Future

1. The Poultry Industry in the Arab World Present & Future Musa Freiji May 8, 2008 1

2. Outline • Important Statistics and overview. • Land areas, population, productions, imports of poultry meat, poultry meat consumption and poultry meat production. • Repercussions of Avian Influenza. • Open trade vs protection policies. • Possibility of developing the poultry industry in the Arab World 2 Musa Freiji

3. The Poultry Industry in the Arab World Source : * FAO 3 Musa Freiji

4. The Poultry Industry in the Arab World Source :* UN ** FAO 4 Musa Freiji

5. The Poultry Industry in the Arab World Source :* FAO ** Importing countries 5 Musa Freiji

6. The Poultry Industry in the Arab World 6 Source :* FAO Musa Freiji

7. The Poultry Industry in the Arab World Source :* FAO **7000tons Smuggled from Syria 7 Musa Freiji

8. The Poultry Industry in the Arab World Source :* FAO 8 Musa Freiji

9. The Poultry Industry in the Arab World Source :* FAO ** Importing Countries 9 Musa Freiji

10. The Poultry Industry in the Arab World 10 Musa Freiji

11. The Poultry Industry in the Arab World Repercussions of Avian Influenza • HPAI since 1997 • The importance of this disease • Use of vaccination • Certain biosecurity measures • Industrial countries = stamping out • Developing countries = Vaccination • LPAI H9 in the Asiatic Arab countries since 2002 11 Musa Freiji

12. The Poultry Industry in the Arab World Repercussions of Avian Influenza (cont) • HPAI H5N1 in Egypt early 2006 • 40 % lost in 6 weeks • Rural free range . • Primitive houses within villages • Delay in permitting use of vaccine • No human casualties in commercial poultry • 22 Humans fatalities restricted to rural areas • 70 % of poultry sales in live markets • Prevention of live markets = uneffective • Examination of sera samples prerequisite to moving birds 12 Musa Freiji

13. The Poultry Industry in the Arab World Repercussions of Avian Influenza ( cont. ) • HPAI in Egypt (cont) • Above incidences and measures resulted in shortage of supply. • Government allowed imports free from duty • Threat to remove import duty altogether • Position of private sector • Lessons learnt from the Egyptian AI epidemic: • Impose biosecurity • Impose minimum distances between farms • Impose one age group . 13 Musa Freiji

14. The Poultry Industry in the Arab World Repercussions of Avian Influenza ( cont. ) • Lessons learnt from the Egyptian AI epidemic: (cont) • Extend free laboratory diagnostic services • Vaccinate rular poultry • Allow Vaccination against prevalent strains • Prevent wild bird hunting • Impose housing of rular poultry 14 Musa Freiji

15. The Poultry Industry in the Arab World Open Trade vs protection policies • The interest of citizens and the economic policies • Private sector invests where the benefit is clear • USA and Europe exercised incentives for decades • US “ Farm Bill” = $180 billion subsidy • Europe’s “ Common Agricultural Policy “ = Eur 50 billion subsidy • USA and Europe justify agriculture subsidy: • Ensure stable supply of food • Provide reasonable standard of living to farmers • Ensure farming in all regions • Improve quality and safety of food • Ensure environment protection • Provide animal health and welfare 15 Musa Freiji

16. The poultry Industry in the Arab World Open trade vs protection policies (Cont.) • Farm subsidies in USA & Europe = 0.5 % of G.D.P • Developing countries cannot subsidise • We should complement industrial countries for subsiding agriculture: • Provided self sufficiency • Encouraged exports • Encouraged innovation, improved productivity and technological advancements 16 Musa Freiji

17. The Poultry Industry in the Arab World Open trade vs protection policies (Cont.) • Developing countries need to be criticized for exercising open trade policies • Scare investors • Encourage emigration of qualified citizens • Balanced economies in the developed world • USA became the largest exporter of corn and soybeans • USA and Europe became self sufficient in most other agricultural products • Canada protects dairy , poultry , and meat farmers • Japan prevents imports of rice and beef 17 Musa Freiji

18. The Poultry Industry in the Arab World Open trade vs protection policies (Cont.) • WTO agricultural trade agreements do not exist yet • Agricultural subsidies in the Arab world • Saudi Arabia • Arab Emirates • GAFTA between Arab countries since 2005 • Arab countries should resort to bilateral trade agreements and not free trade agreements 18 Musa Freiji

19. The Poultry Industry in the Arab World Possibility of Developing the Poultry Industry • Table egg production • Imports of largest 13 Arab Countries 2000 = 383 million 2005 = 415 million Representing 1.95 % of production • Poultry meat production • Cost is double that of Brazil & USA • Imports of Arab countries in 2005 is 1.126 million tons or 31 % of consumption 19 Musa Freiji

20. The Poultry Industry in the Arab World Possibility of Developing the Poultry Industry (Cont) • Poultry meat production • Imports of largest 13 Arab countries 2000 = 465,000 MT 2005 = 770,000 MT or 66% increase when import duties ranged from 20 to 70 % • Conditions for the development 1- Maintain or increase import duties 2- Reduce cost of production by 70 % • Increasing or maintaining import duties improbable 20 Musa Freiji

21. The Poultry Industry in the Arab World Possibility of Developing the Poultry Industry (Cont) • Reduction of Cost of production • Improving productivity reduces cost by 30 % • Mortality less than 5 % • FCR less than 1.7 • Chick production per hen housed 135 or more • Producing needed corn and protein meals reduces cost by 40 % • Ethanol production in USA doubled price of corn and increased price of soya by 35 % • USA targets doubling ethanol production by 2015 • This means prices of such products will remain high 21 Musa Freiji

22. The Poultry Industry in the Arab World Possibility of Developing the Poultry Industry (Cont) • Reduction of Cost of production ( cont ) • Production of corn and soybean has become feasible in certain Arab countries • Sudan is self sufficient in sorghum production and exports sesame and peanuts • Sudan cultivates 16 out of 1.5 million hectares of cultivable land 22 Musa Freiji

23. The Poultry Industry in the Arab World Conclusion • Table egg production will continue • Poultry meat production will decrease • Avian Influenza prevention control require serious and strict measures and policies. • Developing the poultry meat industry requires : • Either protecting the local industries, which is unlikely , or • Reducing cost of production via : • Improving productivity • Producing feed ingredients 23 Musa Freiji

24. Thank you 24 Musa Freiji