UAE announces temporary increase in prices of eggs, poultry products

Ministry says the step was taken based on a request submitted by a number of companies

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By Wam

Published: Sat 18 Mar 2023, 8:13 PM

Last updated: Sun 19 Mar 2023, 7:09 PM

The UAE's Ministry of Economy (MoE) has approved an increase in the prices of eggs and poultry products, clarifying on Saturday that this will be temporary and will be assessed within six months.

The price hike has been capped at 13 per cent, according to a ministerial resolution issued earlier this month.

It was a decision taken based on a request submitted by a number of companies operating in the sector, which said they had incurred losses over the last period due to high production and shipping costs and an increase in prices of imported raw materials like fodder, according to the MoE.

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Based on a study that the ministry carried out to verify the companies' demand, it found a 13 to 20-per-cent price hike reasonable, so the results were then submitted to the Supreme Committee for Consumer Protection. At the federal and local levels, the committee recommended the approval of a 13-per-cent maximum increase.

Eggs and chicken products are among the commodities whose prices cannot be increased without prior approval from the ministry.

The ministry indicated that a 13 per cent was a "justifiable rate that is in line with the high prices of these products regionally and globally". It took into account the current rates of raw materials and other requirements for egg and poultry production, such as fodder, fuel, and vaccinations, as well as high international shipping prices, especially from Russian and Ukrainian ports that serve as the main global supplier of grains used in the feed industry.

The temporary price hike was taken as part of efforts to strike a balance between the needs of the business sector and the consumers, as well as maintain food security in the markets, the MoE said.

It clarified that the increase would help protect egg and poultry companies and farms from global inflation and high production costs, while also ensuring that prices will remain stable and reasonable in the markets.

After six months, if the justifications behind the hike no longer exist as a result of market improvements, the price increase shall be cancelled or modified, the MoE said.

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Wam

Published: Sat 18 Mar 2023, 8:13 PM

Last updated: Sun 19 Mar 2023, 7:09 PM

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