ArabNews reports that however, price spikes have been acceptable over the last two years in comparison with prices in neighboring countries. But this was still placing a great burden on the agriculture ministry, they said.

Abdullah Al-Hamad, an investor in the sector, said price hikes are normal. “As the price of feedstock rises with other production expenses, it is only natural that producers raise prices as a whole,” he added.

“It is unfortunate that a number of producers have left the sector because of the high cost of production and low selling prices, without any help offered by the authorities,” said Al-Hamad.

Population growth in the Kingdom has contributed to the high demand for poultry. “There are more than nine million foreigners in the country who depend mostly on chickens and eggs for their food,” he added.

He urged the agriculture ministry to introduce incentives in the industry for investors. He said Saudis earning low incomes also depend largely on chicken and eggs for food.

“Although profit margins are falling, producers are prohibited from raising the prices of products, which is ultimately pushing them out of the market,” said Abdulmouti Hijazi, sales manager at a poultry farm.

He said prices rises are caused by increasing production costs. However, he said that some traders are involved in raising prices unfairly to make bigger profits. Local poultry production provides 55 percent of the Kingdom’s needs, with the rest imported. France is the leading export country at 88 tons followed by the United Kingdom with 64 tons.