Dumping Effect on Poultry Industry in Kingdom of Saudi Arabia

Document Type : Original Article

Authors

Abstract

This study aims at recognizing dumping and negative impact on poultry industry in the Kingdom of Saudi Arabia. For achieving its objectives, the study adopted the economic quantitative analysis, particularly concentration measures such as, dumping measures ad dumping margin, In its analysis of the impact of dumping , the study relied on Analysis of partial equilibrium in accordance with the primary data for the projects of production of poultry meat.
The study has a group of results with the following  most important conclusions:
1. Most imports of Poultry meat to the Kingdom come from Brazil, France and USA with relative importance of imports for each in sequence are 57.8%, 36% and 1.43%.
2. Market share of Brazil increased from 70.52% in 1986 to around 32.09% in the year 2004, while average price of imports from Brazil declined by 5.1% annually. Hence, Brazil has dumping trends and motives.
3. Dumping is considered the most important problem for the poultry meat industry in the Kingdom as the
       dumping percentage or probability was between   76.86% as a minimum level and 83.1% as a maximum level. The characteristics of the Saudi market are considered factors encouraging dumping practices.
4.  Dumping has a clear impact on poultry industry and national economy through affecting the surplus of producers and consumers, net losses in production and consumption besides the net impact of the change in governmental expenditures which increased from SR 803.46 million during the period 1992-1997 to around SR 1.56 billion during the period 2000-2004.

Based upon the results of this study, the researcher recommends the following:

a)    Resisting dumping through the system of production and merging among the industrial and commercial sectors.
b)    Giving importance for renewing adoption of the standards measures for the poultry meat in the kingdom.
c)    Training the workers in the field of external trade to know more about the dumping phenomenon.
 
 
 
 
 
 
 
 

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