Market Trends of gcc edible meat Industry
- Beef production is declining in the United Arab Emirates. Beef and buffalo meat production in the country dropped by 5.26%, registering a decline from 19 thousand ton in 2019 to 18 thousand ton in 2020. Beef is mainly imported to the United Arab Emirates from India, where the crackdown on the indiscriminate slaughter of bovines has declined buffalo slaughter and buffalo meat exports. The volume of beef imports from India has been declining since 2017.
- In Qatar, beef is mainly imported from India, and beef imports declined in 2017 as engineering exports from India to Qatar were impacted after some Arab countries imposed sanctions on Doha. Bahrain, Saudi Arabia, and the United Arab Emirates suspended all relations with Qatar over the country’s alleged support for terrorist groups. Due to this move, shipping lines operating between India and Doha kept containers on hold, and production declined by 8.76% in 2017 compared to the previous year.
- In Kuwait, the number of slaughtered cattle and buffaloes for meat dropped by 34.62%, from 10,322 thousand heads in 2019 to 6,749 thousand heads in 2020. In 2020, Kuwaiti authorities issued restrictions on beef imports from several countries due to disease outbreaks, such as foot-and-mouth disease and avian flu, as well as bans on beef from Kazakhstan due to anthrax contamination. Due to such conditions, beef imports from Russia were also banned. These factors resulted in the expansion of local beef production, and the number of beef-producing animals is likely to grow in the near future.
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The market is observing a growing demand for premium beef
- 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% Y-o-Y, owing to rising exports. Western-style foodservices 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 higher-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 while allowing Saudi Arabian importers to purchase larger quantities of US beef. Instead of just a few weeks per the prior regulation, Saudi Arabian importers now have at least 70 days to sell US 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
- Price fluctuations in the major exporter nations impacted prices in the region
- Growing demand and government initiatives support regional production
- Rising production costs are impacting the poultry prices
- Increased domestic poultry production is driving the market’s growth
