November 20, 2008
More poultry farms in the UAE are seen to be in danger if the government does not support price hikes for poultry products.
The Ministry of Economy's Consumer Protection Department has rejected price increases for poultry and eggs, despite rising production costs. Stiff competition from imports has also hurt domestic producers.
The government should support poultry farms by subsidizing farm feed imports, said Mohammad Al Noosh, Director-General of the Ras Al Khaimah Poultry and Feeding Company.
Some Gulf countries and the EU provides subsidies to their poultry industry, enabling them to export to and sell their products in the UAE more cheaply, said Al Noosh.
Al Noosh warned that if the government ignores the situation, more small farms will be forced to close down, and that poultry and egg prices may go down in tandem with crude oil prices.
Al Noosh said the UAE had the potential to achieve self-sufficiency in poultry and eggs, but only if the poultry sector received government subsidies.
Saeed Abdullah Alroken, Director of Industrial Development at the Ministry, suggested that poultry producers should take advantage of the GCC Unified Anti-Dumping Law by lodging complaints if any dumping occurs.
The UAE consumes about 170,000 tonnes of chicken per year, with domestic production meeting 25 percent of the local market.