Dispute sparks Bahrain poultry farm crisis

Record ID: 104035

  • Title: Dispute sparks Bahrain poultry farm crisis
  • Date: 11th May 2016
  • Summary: BURI, BAHRAIN (MAY 10, 2016) (REUTERS) POULTRY FARM SHED I INSIDE OF POULTRY SHED LARGE EXHAUST FAN SPINNING SACKS STACKED IN SHADED STORE BIRD SITTING ON SACKS WORKERS SITTING OUTSIDE ON THE GROUND JANUSAN, BAHRAIN (MAY 09, 2016) (REUTERS) OFFICE OF BUSINESSMAN AND OWNER OF AL-SAFA FARM (SOUNDBITE) (English) BUSINESSMAN AND OWNER OF AL-SAFA FARM, JAMEEL ALI SALMAN, SAYING: "For example, my only farm, it's about 300 thousand chicken every 34 days. Now it's zero - not only me, we are as I said 85 percent of the farms and the rest 15 percent within one month, they are going to close as well." BURI, BAHRAIN (MAY 10, 2016) (REUTERS) STREET SIGN AT THE CORNER OF THE STREET READING (ENGLISH AND ARABIC): "SAFA FARM" EMPLOYEE TURNING ON SWITCHES VARIOUS OF INSIDE THE POULTRY SHED JANUSAN, BAHRAIN(MAY 09, 2016) (REUTERS) OFFICE OF BUSINESSMAN AND OWNER OF AL-SAFA FARM (SOUNDBITE) (English) BUSINESSMAN AND OWNER OF AL-SAFA FARM, JAMEEL ALI SALMAN, SAYING: "Bahrain, Kingdom of Bahrain will be empty from fresh chicken in the market, which is very, very, very bad." BURI, BAHRAIN (MAY 10, 2016) (REUTERS) POULTRY FARM SHEDS WITH LARGE FEED TANKS FITTED OUTSIDE ENTRANCE DOOR OF THE POULTRY SHED POSTER ON WALL SHOWING CHICKENS AND DISEASE TYPES HAMALA, BAHRAIN (MAY 10, 2016) (REUTERS) OWNER OF AWAL AND HARAMAIN FARM, ALI MEHDI (ON RIGHT) DRESSED IN LOCAL ARAB CLOTHING TALKING TO ONE OF HIS WORKERS STANDING OUTSIDE THE POULTRY SHED INSIDE THE POULTRY FARM SHED (SOUNDBITE) (Arabic) OWNER OF AWAL AND HARAMAIN FARM, BAHRAIN, ALI MEHDI, SAYING: "Approximately all the farms are in the same problem that we are facing right now - 35 farms. The ones whom signed with Delmon are very few, and I don't think Delmon will continue with this low production by them. We must find a solution to this problem" FIRE FURNACE FITTED IN A BRICKWALL ROOM CARDBOARD ON THE GROUND READING (ENGLISH AND ARABIC): "Delmon Poultry Company" LARGE FEED AND WATER TANKS FITTED OUTSIDE THE POULTRY SHEDS AT THE FARM (SOUNDBITE) (Arabic) OWNER OF AWAL AND HARAMAIN FARM, BAHRAIN, ALI MEHDI, SAYING: "If we work we lose, if we stop - and we have stopped for six months, bleeding heavily in monthly losses. So this is a big problem and I am not sure but hopefully God will make it easy for us and the government will do something to bring a positive outcome." INSIDE OF A POULTRY FARM SHED BURI, BAHRAIN (MAY 10, 2016) (REUTERS) WORKERS WALKING AROUND POULTRY FARM INSIDE A POULTRY SHED
  • Embargoed: 26th May 2016 11:14
  • Keywords: Bahrain poultry farming crisis dispute
  • Location: BURI/JANUSAN/HAMALA, BAHRAIN
  • City: BURI/JANUSAN/HAMALA, BAHRAIN
  • Country: Bahrain
  • Topics: Government/Politics
  • Reuters ID: LVA0014HD3ADX
  • Aspect Ratio: 16:9
  • Story Text: A number of poultry farms in Bahrain have ground to a halt following a dispute between the country's only poultry supplier and the farms which raise the chickens.
    Delmon Poultry provides farmers with one or two day old chicks to be raised, and then receives them again when they have grown to be slaughtered.
    But problems began when the government cut meat subsidies in October last year. This prompted Delmon Poultry, which was receiving state funds, to set new prices on its deal with the farms that it supplies with chickens.
    Most of the farms have refused the new deal, and are now facing the prospect of going out of business.
    "My only farm, it's about 300 thousand chicken every 34 days. Now its zero - not only me, we are as I said 85 percent of the farms and the rest 15 percent within one month, they are going to close as well," said businessman and farm owner Jameel Ali Salman.
    "Bahrain, Kingdom of Bahrain will be empty from fresh chicken in the market, which is very, very, very bad," he added.
    The Bahraini market is flooded with cheap chicken from Saudi Arabia, where poultry farmers continue to enjoy subsidies and benefits from their government.
    With the subsidies removed from Bahraini meat, farmers are finding it even harder to compete.
    Ali Mehdi, a poultry farmer in Hamala southwest of the capital Manama, said all of Bahrain's farms are struggling.
    "Approximately all the farms are in the same problem that we are facing right now - 35 farms. The ones whom signed with Delmon are very few, and I don't think Delmon will continue with this low production by them. We must find a solution to this problem," he said.
    "We have stopped for 6 months, bleeding heavily in monthly losses. So this is a big problem and I am not sure but hopefully God will make it easy for us and government will do something to bring a positive outcome," he added.
    Like other Gulf oil-exporting states, Bahrain has for many years subsidised goods and services such as meat, fuel, electricity and water, keeping prices ultra-low in an effort to maintain social peace.
    But the move to cut subsidies was designed to save money, as low oil prices slash the government's revenues.
    Since Bahrain's oil income began to plunge last year, the subsidies have become much harder for the government to afford.
    Local media quoted officials as saying the reform was expected to save the government about 22-29 million dinars ($58-77 million) annually - a small amount compared to a state budget deficit projected at 1.50 billion dinars this year.
    In January the Bahraini Finance Minister said the government's austerity measures were in line with International Monetary Fund recommendations.
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