Market Trends of middle east edible meat Industry
Underdeveloped local supply chain in the region is a restraint to the production of beef
- Beef production in the region rose by 6.00% in 2022 from 2021. Saudi Arabia accounted for the region's major share of beef production. However, beef production is declining in Saudi Arabia. In 2022, beef production in the country dropped by 4.76%, registering a decline from 42 thousand tons in 2021 to 40 thousand tons in 2022. Imports account for the major beef source in Saudi Arabia. The country's beef imports grew at a rate of 1.54% in 2022 compared to 2021. India, Brazil, and Australia were the major exporters of beef to Saudi Arabia in 2021, with India exporting around 27 thousand tons. With the change in the maximum shelf life of imported frozen products, manufacturers from the United States are hoping that will result in increased sales growth in the Kingdom.
- Qatar has an exponential growth in beef production, and it had a growth of 22.59% in 2022 compared to the previous year. Qatar's beef production reached 1,853.52 tons in 2022 from 1,512 tons in 2021. However, the local value chain of the bovine category is underdeveloped, and live bovine animals are imported for local slaughtering. Large amounts of water and animal feed are required for fattening large animals such as cattle.
- Bahrain accounted for the lowest production in the region. However, the country saw growth in the production of beef by 7.74% in 2022. The beef market in Bahrain sees a huge demand during the Ramadan season. According to the Ministry of Municipalities Affairs and Agriculture Undersecretary for Animal Wealth Resources, the country imported 11,611 heads of livestock, including 10,500 heads of sheep, 1,077 heads of cattle, and 40 heads of camels, to ensure sufficient stock, bringing the total availability to 27,000 heads of livestock during the Ramadan season of 2023.
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The region has observed a growing demand for premium meat products
- Kuwait and Bahrain recorded the highest prices for essential goods in the Gulf region. In 2022, 1 kg of beef was priced at USD 4.91 in Bahrain and USD 4.93 in Kuwait, whereas in the United Arab Emirates and Saudi Arabia, it was priced below USD 4. The reliance of Gulf countries on imports for necessities, including beef and beef products, is one of the leading causes of price increases.
- Spending on premium meat is high in Middle Eastern countries owing to their large affluent populations. For the past eight years, the United Arab Emirates (UAE) and Saudi Arabia have consistently ranked among Australia's top 20 most valuable beef export markets. In October 2022, the price of beef in Australia reached USD 2.82/1 kg, up by 5.3% week on week and 5.1% year on year (Y-o-Y), owing to rising exports. Western-style food services have grown rapidly in the last decade due to accelerated economic growth driven by rapid urbanization, rising disposable incomes, and increased tourism. This has increased demand for high-quality beef grades and cuts.
- The Saudi Food and Drug Authority (SFDA) has expanded the shelf life for chilled beef from the United States from 70 to 120 days. This measure is expected to help US exporters save at least USD 4 per kg due to lower transportation costs using sea transportation while providing Saudi Arabian importers with the flexibility to purchase larger quantities of US beef. Instead of just a few weeks as per the prior regulation, Saudi Arabian importers now have at least 70 days to sell American beef. The extra time is expected to increase profitability since a longer shelf life minimizes the need for last-minute panic sales at steep discounts.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Dependency on imports leaves the region with less hold on the prices
- Rising production costs are impacting poultry prices
- Increased domestic poultry production is driving the market's growth
- Liberalization on pork consumption is anticipated to drive the demand, and thus, the prices
- Growing demand and government initiatives to support regional mutton production
