Technical and Economic Analyses of Poultry Production in the UAE: Utilizing an Evaluation of Poultry Industry Feeds and a Cross-Section Survey

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1 Available online at ScienceDiect APCBEE Pocedia 8 (2014 ) th Intenational Confeence on Agicultue and Animal Science (CAAS 2013) d Intenational Confeence on Asia Agicultue and Animal (ICAAA 2013) Technical and Economic Analyses of Poulty Poduction in the UAE: Utilizing an Evaluation of Poulty Industy Feeds and a Coss-Section Suvey A. Hussein a, S. Sheif a, A. Al-Jubooi b, A. Al-Mansoi b, and K. Alshaafi b. a UAE Univesity, College of Food and Agicultue, Al-Ain, P.O. Box 15551, UAE b Abu Dhabi Food Contol Authoity, Abu Dhabi, P.O. Box 52150, Abu Dhabi, UAE Abstact The poject objective is to closely investigate select UAE poulty industy poduction issues as well as technical and maketing aspects. A compehensive coss-sectional suvey was conducted of UAE poulty fams using PDA (Potable Data Assistant) technology. Study objectives include: (1) obtaining baseline infomation on existing boile and laye fam subsectos; (2) quantifying the amount of input used in the poduction pocess and the outputs obtained, and to identify some main and by-poducts that might have some economic value; (3) and assessment of feed-utilization poduced by the feed industy. Economic chaacteistics of a typical poulty fam in UAE include: aveage boile poduction at about 2,880 tons; aveage laye poduction at about 49 million eggs; and feed cost shae of the aveage fam s opeational cost estimated at 95. This indicates the impotance of expanding investment in UAE poulty secto. Efficiency of feed utilization of bids fed feeds fom one company was slightly bette (1.68 vs. 1.71) than bids fed feeds fom the othe company. Feed utilization efficiency of selected majo feed poduces in the UAE could meet the standads of high quality, commonly used meat-type stains. Such esults ae useful to the decision-make at both the fam and policy levels The Published Authos. by Published Elsevie by Elsevie B.V. Selection B.V. This and/o is open pee access eview aticle unde esponsibility the CC BY-NC-ND of Asia-Pacific license Chemical, ( Biological & Envionmental Engineeing Society Selection and pee eview unde esponsibility of Asia-Pacific Chemical, Biological & Envionmental Engineeing Society Keywods: UAE Poulty Industy, Boiles, Layes, Feeds, Fam Economic Analyses Coesponding autho. Tel.: addess: ahussein@uaeu.ac.ae The Authos. Published by Elsevie B.V. This is an open access aticle unde the CC BY-NC-ND license ( Selection and pee eview unde esponsibility of Asia-Pacific Chemical, Biological & Envionmental Engineeing Society doi: /j.apcbee

2 A. Hussein et al. / APCBEE Pocedia 8 ( 2014 ) Intoduction and Objectives The Aab Oganization fo Agicultue Development (2012) statistics showed that United Aab Emiates (heeafte UAE) self-sufficiency (local poduction/total supply) eached 23 and 54 on poulty meat and eggs espectively [1]. The UAE self-sufficiency on boile meat inceased fom 9 in 1982 to 23 in The UAE self-sufficiency of eggs moe than doubled fom 23 in 1982 to 54 in 2010 Fig. 1. Howeve, one would ague that significant investment oppotunities exist because 77 and 46 of poulty meat and eggs consumed ae impoted fom othe counties. Such a gap between poduction and consumption ceates lage futue investment possibilities to substitute impots. It is well known that feed epesents about of opeational costs at any typical boile and laye fam. It is also commonly assumed, sometimes eoneously, that any unknown poblems in commecial poulty management and poduction ae by default due to the nutient composition of poulty feed. Thus, it is impotant to evaluate the nutient equiements of poulty feed poduced in the UAE feed industy, along with conducting an economic analysis of the poulty poduction. The economic analysis focuses on county self-sufficiency and the need to expand investment in ode to contibute towads coveing local demand of poulty poducts. Also, anothe objective of this eseach pape is to discuss exploatoy esults egading the poulty industy entepise pofitability and feed quality diffeences, as well as the poulty industy futue possibilities of investment expansion in the Emiate of Abu-Dhabi, UAE. These exploatoy esults ae based on a suvey of boile and laye opeations in the Emiate of Abu-Dhabi caied out by a eseach team duing The efficiency of (high quality) feedutilization atio in the poulty industy, i.e. feed amounts consumed by the chicken s final body weight, is an excellent indicato to measue the efficiency of a poulty fam s pefomance and management, as well as an indicato to measue fam pofitability. In othe wods, the less feed used to poduce chicken meat the bette it is fom a poduction pespective [2] and [3]. Consequently, the study s questionnaie was designed to collect infomation on commecial poulty fams egading feed souces, quality, cost, and efficiency of feedutilization atio. Evaluation of nutient equiements and cost of poulty feed poduced by the UAE feed industy povided an excellent souce of infomation to establish whethe o not the industy poduces feed in accodance with the National Reseach Council (NRC) ecommendations and guidelines [4]. 2. Data and Methods This study was caied out to evaluate the nutient composition of local poulty feeds compaed to intenational standads published & outlined in the NRC Publication: Nutient Requiement fo Poulty, evised edition (1994). Thee majo UAE local poulty feed companies wee selected in this study. Also, diffeent type feeds fo boile poduction (state and finishe) and egg poduction (state, gowe and laye) wee selected fom each company. Then, laboatoy feed chemical analyses wee pefomed on cude potein, fat, and ash levels as detemined by methods descibed by AOAC [5]. Mineals analyses of total calcium, magnesium, coppe, phosphous and othes wee detemined using pocedues fo the Inductively Coupled Plasma Atomic Emission Spectomety (ICP-OES) as descibed by Vaian [6]. Anothe study was designed to investigate and compae the effect of two diffeent feed types poduced by the UAE feed industy (fom two majo feed mill companies, B and C ) on boile feed efficiency (chicken meat poduction), consideing the available maket pice of feeds utilized in this tial. One-day old Cobb-500 commecial boile chicks wee andomly assigned to two (2) diffeent feed teatments, six eplicate goups pe teatment of 10 chicks pe cage. The chicks wee housed in Petesime battey boodes, 10 chicks pe cage. Expeimental teatments consisted of feeding boile state feeds fom two diffeent feed companies fo thee weeks, followed by feeding boile finishe feeds to the same eplicate goups fo anothe week in ode to poduce consume maket size chickens. Body weight gain and feed intake wee measued peiodically and efficiency of feed

3 268 A. Hussein et al. / APCBEE Pocedia 8 ( 2014 ) utilization of boile feeds was calculated. The collected data wee subjected to statistical analysis using the T- Test [7]. A pobability level of <0.05 was equied fo significance Eggs Analysis and Results Fig. 1. United Aab Emiates Self-Sufficiency Ratios (SSRs) in Poulty Meat and Eggs Technical Analysis of Poulty Feeds Poulty Meat The data in Table 1 shows that thee wee some diffeences between UAE factoies feed poducts and the intenational standads of NRC (1994 evised edition) with egads to the nutient equiements povided in thei feeds. The cude potein, fat, calcium, zinc and phosphous pecentages in the boile state feeds poduced by the UAE feed industy wee simila to the intenational standads of NRC. Feed mill B poduced boile finishe feed containing nutients simila to the minimum nutient equiements set by the NRC. Howeve, the magnesium and coppe pecentages of boile state and finishe feeds wee highe and lowe than the minimum equiements set by the NRC, espectively. Table 2 shows the nutient composition of pullet state & gowe and laye feeds poduced by the UAE feed industy compaed to the minimum nutient equiements of the NRC. Simila tends wee obseved with the pullet state feeds poduced by UAE feed companies, i.e., the cude potein, fat, calcium, zinc and phosphous pecentages wee simila to the intenational standads of the NRC. Pullet gowe feeds poduced by UAE feed companies wee diffeent in the cude potein, calcium, magnesium, coppe and zinc compaed to the minimum equiements set by the NRC. The lagest diffeences in feed composition fo layes wee in the cude potein pecentage, followed by calcium, magnesium and coppe pecentages. Poulty feeds poduced by only one of the thee companies (feed mill B) gave the neaest chemical analysis to the intenational standads of the NRC (1994 evised edition). The esults of the second study showed that boile body weight and body weight gain at 14 and 21 days of age wee not significantly diffeent between the two feed teatments. Howeve, at 28 days of age, body weight (1080 vs g/bid) and body weight gain (1031 vs. 1091g/bid) wee significantly diffeent (p<0.05) between feed teatments B and C. Thee wee no significant effects of feed teatments on feed intake o dessing pecentage. Efficiency of feed utilization of bids fed feeds fom one company was slightly bette but

4 A. Hussein et al. / APCBEE Pocedia 8 ( 2014 ) not significantly diffeent (1.68 vs. 1.71) than bids fed feeds fom the othe company. Table 1. Nutient Composition of Boile Feeds Poduced by UAE Feed Industy Compaed to Minimum Nutient Requiement of NRC1. Feed Type Feed mill Name Dy Matte Cude Potein Fat Calciu m Magnesiu m mg Coppe mg State A (23 CP 2 ) < State B (23 CP) < State C (21 CP) < State NRC Nutient Requiement s A (18 CP) < B (21 CP) < C (18 CP) < NRC Nutient Requiement s 1 Pecentage o mg/kg feed 2 CP: Cude Potein Zin c mg Phosphous Table 2. Nutient Composition of Pullet State & Gowe and Laye Feeds Poduced by the UAE Feed Industy Compaed to Minimum Nutient Requiement of the NRC1. Feed Feed mill Dy Cude Fat Calcium Magnesium Coppe Zinc Phosphous Type Name Matte Potein mg mg mg State A (21 CP 2 ) State C (21 CP) < State NRC Nutient Requiements Gowe A (15 CP) < Gowe B (17 CP) Gowe C (18 CP) < Gowe NRC Nutient Requiements Laye B (16 CP) < Laye C (18 CP) < Laye C (16 CP) Laye NRC Nutient Requiements Pecentage o mg/kg feed 2 CP: Cude Potein 3.2. Poulty Industy Entepise Analysis This eseach suveyed poulty opeations in the Emiate of Abu Dhabi, United Aab Emiates. Analysis of

5 270 A. Hussein et al. / APCBEE Pocedia 8 ( 2014 ) the suvey indicates that within a typical boile opeation, annual meat poulty poduction is 2,880 tons. Meanwhile, a typical laye fam opeation poduces 49 million eggs annually. Suvey esults also indicated that aveage output pice pe kg meat is estimated to be about 15 AED and aveage pice pe dozen eggs is estimated to be AED. The suvey included a numbe of questions elated to issues and concens of poulty poduces in Abu Dhabi Emiate, including that 60 of boile poduces and 75 of laye poduces indicating they ae having maketing poblems. Reseach esults showed high feed pice vaiability by povides fom one egion to anothe in the UAE. Suvey esults also showed that feed cost is a vey impotant facto in detemining poulty entepise pofitability in UAE. Table 3. Total Revenue and Thee Levels of Feed Costs fo Nine Poulty Opeations in the Emiate of Abu Dhabi Boiles Opeations Total Revenue (TR) Feed Costs High Feed Costs Middle Feed Cost Low A 19,353,600 16,601,425 16,412,055 16,222,685 B 60,300,000 48,276,712 47,726,027 47,175,342 C 36,000,000 28,821,918 28,493,151 28,164,384 D 16,800,000 14,410,959 14,246,575 14,082,192 E 86,400,000 64,849,315 64,109,589 63,369,863 Layes Opeations Total Revenue (TR) Feed Costs High Feed Costs Middle Feed Cost Low F 1,567,500 1,513,818 1,491,272 1,468,726 G 14,895,833 14,385,702 14,171,447 13,957,192 H 14,895,833 14,385,702 14,171,447 13,957,192 I 13,750,000 13,279,110 13,081,336 12,883,562 Souce: Poulty Industy Suvey and Pesonal Contacts with Facilities Manages To analyze the Abu Dhabi poulty entepise, mak-ups between total evenue (quantities sold X sales aveage pice) and feed cost wee calculated fo the majo poulty poduces in the Emiate of Abu Dhabi. This eseach assumed feed cost to be about 95 of the vaiables costs as indicated fom pesonal inteviews with the poulty opeational manages in five boiles meat poduction facilities and fou layes (eggs poduction) facilities in the Emiate of Abu Dhabi. Table 3 shows the Total Revenue (TR) and thee levels of feed costs (high, medium, and low). Feed costs pe kg data sets wee povided by the poulty opeational manages duing the poulty suvey. Mak-ups of total evenue minus the thee levels of feed costs ae estimated fo boile and laye opeations in the Emiate of Abu Dhabi. Such mak-ups of evenue ove feed costs ae used as appoximation of the poulty entepises ability to cove thei vaiable costs and ceate possibilities fo pofitability. It is noticeable fom the esults that poulty opeation (both boiles and layes) ae pofitable opeations consideing the costs of feed. It is expected that poulty opeation is geneating a lage enough goss magin that contibutes towads coveing fix cost and poduces positive net etuns. These esults indicate the possibilities of futhe investment in such an impotant subsecto to achieve highe levels of self-sufficiency at the county level. The suvey esults indicated that poulty poduces ae facing a numbe of maketing poblems. Such emaks necessitate a futhe detailed maketing study to futhe undestand the causes of having a lage ange of feed costs and the specific goss magins thoughout the poulty industy in the UAE. 4. Conclusions In conclusion, this eseach pape identified the possibility to expand poulty industy investment to contibute towads inceasing UAE self-sufficiency in both poulty meat and egg poduction. Self-sufficiency

6 A. Hussein et al. / APCBEE Pocedia 8 ( 2014 ) was found to be 23 fo poulty meat and 54 fo laye poduction (i.e., eggs). Economic chaacteistics of a typical poulty fam in the UAE show an aveage boile poduction of about 2,880 tons. Meanwhile, aveage laye poduction was found to be about 49 million eggs. The technical quality analysis indicated that chemical analysis of nutient composition of boile and laye chicken feed poduce by the UAE feed industy when compaed to the minimum nutient equiements of the NRC wee nealy identical. The eseach expeimental tials indicated that efficiency of feed utilization of selected majo feed poduces in the UAE meet the standads of high quality feeds to suppot gowth pefomance in one of the fastest gowing boile stain (Cobb-500). Finally, this eseach poject esulted in achieving one of its majo objectives -- that of obtaining selected baseline infomation on existing boile and laye fams in the UAE. Acknowledgements This pape was pat of the Reseach Poject No. is The authos ae indebted to the UAE Univesity s Reseach Affais Depatment and the Abu Dhabi Food Contol Authoity (ADFCA) fo cofunding this poject. Gatitude is extended to ADFCA fo poviding all of the needed logistics fo field suveying the fams. Also, the authos wish to thank D. Eihab Fathelahman fo his assistance in this pesent study. Refeences [1] Aab Oganization fo Agicultual Development (AOAD). (2012). Aab Agicultual Statistics Yeabook. Vol. 26 to Vol. 32 Website Vested July, [2] Washbun, K. W., Efficiency of feed utilization and ate of feed passage though the digestive system. Poulty Sci. 70: [3] Rochelle, S. J., T.J. Applegate, E. J. Kim and W. A. Dozie III, Effect of dietay type and ingedient composition on ate of passage and appaent ileal amino acid digestibility in boile chicks. Poulty Sci. 91: [4] NRC, National Reseach Council Nutient Requiements of Poulty. 9th ev. ed. National Academy Pess, Washington, DC. [5] AOAC Official Methods of Analysis. 18th ed. Association of Official Analytical Chemists, Gaithesbug, Mayland. [6] Vaian Incopoation Analytical Methods fo Inductively Coupled Plasma Atomic Emission Spectomety. Vaian Inc., Habo City, CA. [7] Snedeco, G. W. and W. G. Cochan., Statistical Methods. 7th ed. Iowa State Univesity Pess, Ames, IA.