The United Arab Emirates (UAE) poultry sector is on an impressive growth trajectory. This report by USDA and Global Agriculture Information Network delves into the key dynamics of the UAE’s poultry industry, supported by governmental initiatives, technological advancements, and evolving market trends, and is supplemented with statistical data for greater clarity.
1. Production Trends
The UAE’s poultry production is forecasted to grow by 17% in 2025, reaching 70,000 metric tons (MT). This surge is underpinned by several factors:
- Governmental Initiatives: Feed subsidies provided by the Abu Dhabi Agriculture and Food Safety Authority (ADAFSA) have significantly reduced production costs. The introduction of subsidized fodder, priced 25% lower than market rates, has strengthened local production.
- Technological Investments: The integration of robotics, artificial intelligence, and other modern farming technologies have optimized production processes. Notable companies like Al-Ghurair Foods and Al-Rawdah Farm are spearheading these advancements.
- Infrastructure Expansion: Al-Ghurair Foods is establishing a 680,000-square-meter poultry farm in Khalifa Economic Zones Abu Dhabi (KEZAD), projected to produce 10,000 MT annually starting in 2025.
Despite this growth, domestic production still fulfills only 15% of the UAE’s chicken meat demand, necessitating heavy reliance on imports.
2. Consumption Patterns
Chicken meat consumption in the UAE is projected to rise by 6% in 2025, reaching 470,000 MT. Several factors contribute to this growth:
- Population Growth: The population is expected to increase to 10.2 million in 2024, with a steady annual growth rate driven by expatriate inflows and economic prosperity.
- Thriving Tourism Sector: Tourism accounts for 10-15% of the UAE’s economic activity. Dubai, hosting 9.3 million international visitors in the first half of 2024, exemplifies the sector’s robust performance.
- Economic Expansion: Rising real estate developments and construction projects have indirectly fueled poultry consumption, particularly in labor-intensive industries.
- Stable Prices: The UAE Ministry of Economy has maintained stable poultry prices in 2024, following a regulated 13% price increase in 2023.
3. Import Reliance and Trade Dynamics
The UAE is among the world’s largest importers of chicken meat, with imports expected to rise by 4% in 2025, totaling 400,000 MT. Brazil dominates the UAE poultry import market with a 78% market share due to competitive pricing, diverse product offerings, and a robust local presence. Other key developments include:
- Geopolitical Factors: Instability in the Middle East, particularly in the Red Sea region, has disrupted global trade, necessitating increased imports to maintain supply stability.
- Turkey’s CEPA: Although Turkey signed a Comprehensive Economic Partnership Agreement (CEPA) with the UAE in 2023, temporary export restrictions in 2024 constrained its market share. A rebound is anticipated if restrictions are lifted in 2025.
- Regional Hub Development: Dubai is establishing the world’s largest logistics hub for foodstuffs, further consolidating its role as a global trade nexus.
4. Key Challenges and Opportunities
While the UAE poultry industry exhibits significant growth potential, challenges remain:
Challenges:
- Feed Dependency: Feed imports account for 60-70% of production costs, making local producers vulnerable to global price volatility.
- Shipping Disruptions: Geopolitical tensions and logistical hurdles, such as Suez Canal blockages, have increased freight costs and delivery times.
- Limited Domestic Capacity: Despite advancements, the UAE’s local production is insufficient to meet demand, leading to import reliance.
Opportunities:
- Food Security Strategy 2051: Aims to enhance sustainable local food production using modern technology.
- Technological Integration: Innovations in AI and robotics are paving the way for more efficient and sustainable poultry farming.
- Market Expansion: The booming tourism and real estate sectors present opportunities for increased poultry consumption.
5. Statistical Summary
Production, Consumption, and Import Forecast (2023-2025):
| Year | Production (MT) | Consumption (MT) | Imports (MT) |
|---|---|---|---|
| 2023 | 56,000 | 431,000 | 375,000 |
| 2024 | 60,000 | 445,000 | 385,000 |
| 2025* | 70,000 | 470,000 | 400,000 |
*(Forecast)
Brazil’s Market Share in UAE Imports (2023):
- Brazil: 78%
- United States: 10%
- Others: 12%
6. Future Outlook
The UAE’s poultry industry is poised for robust growth through 2025, driven by governmental support, strategic investments, and a thriving consumer market. However, addressing challenges such as feed dependency and import reliance will be crucial for achieving long-term sustainability and food security.
This upward trajectory not only reflects the sector’s resilience but also positions the UAE as a regional leader in poultry consumption and trade, underscoring its commitment to economic and food security goals.
