May 12, 2011

 

UAE experiences limited poultry stock

 

 

After a major supplier halt its production, the UAE markets have been experiencing about 70% shortage in fresh chicken supply over the last two months, according to a report.

 

The media reported that the UAE's biggest poultry producer, Emirates Modern Poultry, popularly known as Al Rawda, is carrying out renovation of its facilities and has stopped production that resulted in a massive shortage of poultry stock across the country.

 

Sources at the cooperative societies have confirmed a shortage in the availability of poultry.

 

Farid Shamandi, Director general of Emirates Cooperative Society, said "the market suffers from a significant lack of fresh chicken, which ranges between 60 and 70% on weekdays and goes up to 80% on weekends."

 

He attributed the shortage to the temporary halt in the production of Al Rawda, which is one of the largest producers and distributors in the domestic market.

 

Though there are a five other local suppliers of fresh chicken as well as a Saudi and an Omani supplier, they have failed to fill the huge gap left by Al Rawda, he added.

 

The cooperative society currently receives 350 cartons per day, as against 600 cartons it used to receive previously.

 

However, Shamandi assured that the shortage will not affect the prices of fresh chicken, which is set at AED17/kg (US$4.63) by the Ministry of Economy.

 

Ibrahim Al Bahr, Deputy Director General of the Union cooperative society also admitted to a 70% shortage in the supply of fresh chicken.

 

According to Al Bahr, officials from Al Rawda poultry have promised to restart the full production from July 2011, following a complete upgrade of their system.

 

However, the lack of fresh chicken has also increased pressure on the frozen chicken supplies, which is dominated by Omani and Brazilian suppliers.

 

Curiously, Emirates Modern Poultry, the producers of Al Rawda, is seeking a hike in fresh chicken prices, citing continuous inflation in fodder and oil prices, which are adding to the cost.

Dr Al Rashid Dafalla, General Manager of Emirates Modern Poultry, said "We have submitted a request to increase the price of fresh poultry with the Department of Consumer Protection in the Ministry of Economy, because the prices of fodder and oil are rising continuously."

 

He added that the market is currently suffering from a significant increase in the price of feed, which accounts for 60% of the cost of production.

 

Attributing the hike in feed prices to the increase production of biofuels, he said continuous diversion of food items like corn and soy into the production of biofuel will result in unaffordable food prices.