March 22, 2023

The United Arab Emirates allows retailers to increase poultry and egg prices

The United Arab Emirates' (UAE) Ministry of Economy has allowed retailers to increase the prices of poultry products and eggs on a temporary basis, Khaleej Times reported.

The move comes after retailers requested the ministry to allow a price hike to cut losses.

Some retailers have already raised prices of the two commodities by a maximum of 13% in line with the ministry's instructions. The ministry will reassess the prices and market situation in six months and make a decision accordingly.

The decision to increase prices was made due to three main reasons. Firstly, production costs, including the cost of raw materials and manpower, have increased for producers. This has become a challenge for companies to maintain current rates. Similar challenges have been faced by other countries where prices of poultry products have been increased due to supply chain challenges.

Secondly, poultry firms heavily rely on imported materials, such as fodder, for production. The prices of these materials have gone up, and producers argue that local prices need to increase to slash losses. Some companies have not been able to meet production requirements and have not supplied frozen chicken to the market due to imported material challenges.

Finally, retailers blame high shipping costs for importing materials.

-      Khaleej Times