Poultry markets across various Yemeni cities and regions have been in a state of continual upheaval since the start of 2024, experiencing price volatility ranging from significant surges to varying declines, or reverting to standard price levels.
This instability is coupled with intermittent shortages in locally produced poultry, leading to sporadic market crises and price escalations, all against the backdrop of deteriorating living conditions that have adversely impacted citizens' purchasing power and consumption patterns.
In fact, there are numerous factors that have emerged as primary drivers of this crisis that has plagued the markets for months, further exacerbating the situation. As observed by "Khuyut," key factors include the ongoing ban on frozen poultry imports instituted by the Sana'a authority since the beginning of 2024, coupled with challenges in local production stemming from climate-related issues that have become a predominant concern for poultry farms and owners. Additionally, challenges such as pest outbreaks, fluctuating feed prices, and various production necessities contribute to the current predicament in the poultry sector.
Factors Impacting Production
Imad Yasser, a poultry farm owner, detailed to "Khuyut" the array of challenges that have intensified the struggles faced by local production and poultry breeders in recent times. These challenges, stemming from import decisions, climatic factors, and the availability of essential production resources, have created a complex web of obstacles.
The repercussions of these challenges have been keenly felt by poultry farms, grappling with limited resources and a shortfall in crucial requirements necessary to effectively address the resulting issues. This situation has not only led to the proliferation of pests and diseases but has also strained the overall production capacity of the sector.
Experts in the field of poultry production and breeding emphasize that the core issue lies not in the use of antibiotics but in the failure of production entities to adhere to prescribed withdrawal periods before the sale and slaughter of poultry. Through the oversight of these crucial periods, breeders endanger the emergence of antibiotic-resistant bacteria in the intestines of the poultry, posing a significant threat to both animal health and food safety standards.
As Wael Al-Salahi, a seasoned investor in the poultry industry, speaks to "Khuyut," he sheds light on the current tumultuous phase that the Yemeni poultry sector finds itself in, underscoring the urgent need for governmental support to navigate through these challenges. The sector is grappling with the pressing issue of mounting production expenses amidst a backdrop of diminishing consumer purchasing power, posing a significant hurdle for industry players.
Recent insights gleaned from the General Statistics and Information Administration at the Ministry of Agriculture and Irrigation, as shared with "Khuyut," paint a vivid picture of Yemen's poultry landscape. With white meat production hovering at approximately 188,000 tons and egg output peaking at around one and a half million, the industry's resilience is being put to the test.
Reflecting on historical data pre-2015, Yemen's reliance on monthly imports of about 20,000 sheep and 10,000 cattle, in addition to frozen meat shipments, underscores the shifting dynamics of the local market. Despite these import figures, the current scenario reveals a notable shift, with domestic production now catering to approximately 70% of the market's demand for livestock or red meat, and nearly half of the requirements for poultry products.
Decisions by the Relevant Authorities
Throughout recent months, owners of poultry production companies and farms have persistently voiced their pleas for safeguarding small poultry farm owners from the brink of collapse amidst market deterioration and dwindling purchasing power. They advocate for the provision of essential farm supplies such as feed, medications, and chicks.
In local markets across Sanaa and various Yemeni cities, poultry prices fluctuate based on size and weight. The average price per chicken hovers around 2500 Yemeni riyals, with variations of approximately 500 riyals or more determined by weight regulations set by the relevant authorities for poultry sales. Prices in Sanaa exceed the norm due to the escalation of the local currency’s exchange rate in internationally recognized government-controlled areas.
Market traders emphasize the considerable repercussions stemming from the decline in frozen poultry imports, intensifying the supply crisis in markets as local production grapples with the challenge of meeting the demands it once effortlessly fulfilled. This imbalance between supply and demand has prompted authorities to intervene by imposing stringent regulations on poultry traders and sellers. One notable measure implemented mandates adherence to a standardized pricing structure that is intricately tied to the weight of the poultry being sold or traded. This fixed pricing mechanism aims to bring stability and transparency to the market, ensuring fair practices and equitable pricing for both sellers and consumers.
Conversely, Majdi Abdelkawi, a poultry seller, underscores a critical yet often overlooked issue – the weakening purchasing power of consumers and its effect on diminished poultry demand. Many consumers now opt for purchasing poultry by piece rather than as a whole chicken, posing a dilemma for sellers when contemplating price adjustments amidst declining purchasing power and escalating business costs in the poultry trade.
Traders and market stakeholders, including sellers, distributors, and industry representatives, express deep concerns over the ramifications of the decisions made by authorities in Sanaa. Rather than extending support to local producers through tax and customs exemptions, the authorities have opted to exempt products from inspection and regulatory oversight. This shift in policy has sparked apprehension and raised eyebrows within the market community. Of particular note is the recent move by the Ministry of Agriculture in Sanaa to grant local poultry producers immunity from government scrutiny and mandatory product inspection protocols. This decision has triggered discussions and debates among various market participants regarding the potential implications for product quality, consumer safety, and the overall integrity of the market.
Pest Control and Feed Costs
In the realm of poultry production and breeding, experts underscore that the crux of the matter lies not in the utilization of antibiotics, but in the critical lapse of production entities in complying with the prescribed legal withdrawal periods prior to the sale and slaughter of poultry. These mandated intervals serve as a crucial safeguard, preventing breeders from releasing poultry or its by-products into the market before effectively eliminating any residual antibiotics. Failure to adhere to these guidelines can cultivate the growth of antibiotic-resistant bacteria within the chickens' digestive systems, leading to their affliction and mortality.
Delving deeper into the intricacies of the industry, Khalid Al Maroai, a seasoned agricultural engineer specializing in poultry production, sheds light on the mounting challenges posed by the escalating costs of feeds, medications, and a myriad of essential nutritional requisites. Moreover, the burgeoning expenses associated with acquiring tools for maintaining optimal health and combating pests and diseases exert added strains on poultry farms, culminating in a decline in poultry populations within breeding facilities. Notably, the establishment of such investment ventures comes with substantial financial burdens, ranging between 5 to 10 million Yemeni riyals for a project dedicated to rearing ten 30-day-old meat chickens.
It is worth noting that within the realm of poultry farming, the concerns voiced by laborers and investors hold significant weight. Of particular relevance is the growing unease surrounding the rising costs of poultry feed, which serve as a primary driver of supply chain disruptions and price fluctuations. The current price fluctuation, ranging from 150,000 to 450,000 Yemeni riyals per ton of feed, underscores the substantial financial strain placed on industry stakeholders as they navigate the intricate landscape of sustaining poultry farming operations.
