October 18, 2004

Poultry Prices to be Standardised In UAE
 

Prices of fresh poultry and eggs in the UAE will be uniform from October 23, in a deal signed by local poultry farms and other Gulf-based firms last week.

The deal aims to control the market, curb fluctuation in prices and prevent some companies from misusing the situation to raise the prices.

Dr Hussain Hassanin, General Coordinator for EPPA, said, "Standardising the prices of poultry and related products will help protect both consumers and producers. We have taken this decision because of the price fluctuation caused by undercutting in prices during the last few years. It was due to the flooding of the market with products from several local and regional companies. These problems caused financial losses estimated at millions of dirhams for a number of companies, thereby forcing some to close down."

Mr Hassanin also said that the crisis had resulted in drop in the production of several companies adversely affecting the local poultry market.

According to Mr Hassanin, the decision is a serious attempt to control the market, curb the fluctuation of prices and prevent some companies from misusing the situation to raise the prices. The deal will specify the profit margin of the companies, allowing 10 per cent of the profit for the producers, and a similar profit margin for retailers. Besides, it will regulate any kind of discounts provided by companies and poultry farms to distributors or retailers, he pointed out.

Mr Hassanin said that on implementation of the deal, local companies would provide higher quality alternatives for frozen poultry produced in the UAE by increasing the production of fresh poultry. This contract does not mean that the poultry prices will increase, it is a mechanism used to control the market and protect the consumer, he said.