February 27, 2007

 

Kuwait poultry producers may withdraw plans to raise egg prices

 

 

Kuwait's Poultry Companies Union may withdraw its decision to increase the price of eggs by 20 percent after offers from foreign producers at half that of local prices, flooded in.

 

The poultry union had tried to justify the price hikes, citing the reason that feed prices had increased by more than 30 percent recently.

 

The union is currently holding meetings with local authorities to discuss the issue, the Al-Watan daily reported.

 

However, Arab and foreign poultry companies have submitted their offers to the Cooperative Societies Union, quoting prices nearly half of current prices of locally produced eggs.

 

Chairman of Cooperative Societies Union Mohammed Al-Mutairi said the pouring of offers has forced the Poultry Companies Union to withdraw its decision.

 

The Cooperative Societies Union has said it would not accept price hikes as local products are supposed to be cheaper than imported goods.

 

The government's  Public Authority for Agricultural Affairs and Fish Resources (PAAAFR) which actively supports local egg producers, has decided to take action against the union, insisting that plans for price hikes be scrapped.

 

Stating that even the old prices of local eggs were much higher than imported eggs, Al-Mutairi said cooperative societies would sell local eggs only at their old prices.

 

Sources say the Poultry Companies Union had tried to justify the hike by saying prices of fodder went up by 30 percent.

 

Meanwhile, bird flu has broken in several chicken farms and the zoo in Kuwait.