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Tax and Duty Cut to Help Poultry Producers

30 August 2012, at 9:11am

ALGERIA - In order to reduce the price of white poultry meat and to help the struggling poultry sector, the Algerian government is removing VAT and exempting raw poultry materials and finished products from customs duties from 1 September until 1 August next year.

The move is designed to help the 35,000 producers and 350 livestock feed specialists in the wake of rising prices of corn and soybeans.

Minister of Agriculture and Rural Development, Rachid Benaissa, told the Interprofessional Council meeting of the industry that bank loans at a zero interest rate, including R'fig, Ettahadi and federal credit, will also be available to some producers, according to Algerie Soir.

As well as helping to ensure the survival of this industry, which employs between 100,000 and 300,000 people and has a turnover of $1.5 billion, the minister has also announced a programme of modernization for the sector and move to help protect the purchasing power of consumers.

The minister said the sector requires a massive concerted effort to develop the sector sustainably.

Mr Benaissa said: "The latest move can alleviate the effect of increasing the cost of production on the prices of poultry products, including chicken, stabilising the prices first, before gradually pushing them down."

For their part, poultry producers have announced their commitment to act in their respective business segments and work together to ensure satisfactory market supply conditions for the consumer.

Poultry farmers and other stakeholders expressed their willingness to fight against the waste of livestock feed, reducing the consumption index in order to reduce the cost of a kilogram of white meat - both chicken and turkey.

Currently, it is estimated that poultry farmers use 3.5 kg of feed to produce a kilogram of meat, while poultry farmers in developed countries and Maghreb use only 1.6kg to 2 kg through the use of modern farming techniques of production.

This partly explains why the price of chicken in Algeria is twice that of Tunisia or Morocco.

The poultry producers have also promised to modernise their buildings and improve farming conditions and to help each comply with the technical standards and improve the health of their livestock in order to improve performance and reduce mortality rates.