September 29, 2006

Kuwait's beef sellers increases prices, despite government ruling

Despite a government ruling requiring meat sellers to sell their meat according to prices dictated by the government, many are flouting the rules and selling them above dictated prices, Saudi media reported. 

Prices of meat in Kuwait City has increased 5 percent despite notices by the Consumer Protection Department prominently displayed at shop entrances listing  government-dictated prices, reports by Al-Watan said.

Warnings on notice boards by the department urging consumers to report errant meat sellers have  gone unheeded. 

In fact, prices offered in the market can be as much as 70 percent higher than government stipulated prices.

Yet, this has not affected the stream of customers who are willing pay the prices declared by shop-owners. The reason- shop owners have earned the loyalty of their customers, who have obtained their meat supplies there for years.

Prices of meat sold in slaughterhouses vary on a daily basis, according to the sheep market indicator and based on the consumers' demand, shop-owners say, failing to mention that profit margins from their cut also determined prices. 

Furthermore, price hikes are usually not under the control of slaughterhouses but are determined by traders and livestock breeders.

This is also in addition to the fact that to customers, cleanliness and quality of the meat often matter more than stipulated prices, butchers said.

This has led to a variation and unpredictability of meat prices on the consumer end, the report said.