Market expectations
In UAE, consumers are willing to pay more for quality food. Arabian Farms focuses on this high-end market with its strategy of changing people’s minds from frozen to fresh. The company is convinced that fresh locally produced chicken will eventually replace most frozen products. Dr. Suheel explains, “The cut-up market has already grown substantially to 50-60% in some outlets and this will continue. Consumers are looking for more convenience. Few consumers now want to cook a whole chicken or cut up a chicken themselves at home. With the increasing amount of cut-ups, we foresee chickens, currently around 1,350 grams [2.9 lbs], getting bigger. This is financially attractive, because bigger cut-up parts simply make more money.”
World Expo
“Our distribution network is huge, catering to all channels. Today, 70-80% of our table eggs are distributed through major retail outlets. We plan to do the same with our chicken business. We intend to be strong in other channels too such as HoReCa and small grocers,” says Dr. Suheel.
“We expect a lot from the postponed Expo 2020. It’s the first World Expo to be held in the Middle East and runs from October 2021 to March 2022 with 25 to 30 million visitors expected. The Expo is likely to boost demand for locally produced fresh chicken immensely with the emphasis on premium restaurants and hotels. Those six months will open up many opportunities for producers who are up for the challenge.”