Confirmed the assessment of the need for continuity within 6 months
«Economy»: The increase in the prices of eggs and poultry is temporary
The increase protects poultry and egg companies and farms from the negative effects of high production costs. Archival
The Ministry of Economy stated that the approval to raise the prices of egg and poultry products by a maximum of 13%, which was made under Ministerial Resolution No. 41 of 2023 issued on the sixth of March 2023, comes within the framework of the keenness of the Ministry and its partners to ensure a balanced relationship between the trader and the consumer, and to maintain food security in all markets of the country, in line with the provisions of Federal Law No. 15 of 2020 regarding consumer protection, and related laws and decisions, noting that this increase It is temporary, and that the need for its continued application will be assessed within six months from now, and that if there are no reasons for it in light of the developments in the local, regional and global markets, it will be canceled or amended.
The ministry pointed out that this step was taken against the backdrop of a request submitted by a number of companies working in this field in the country to the Ministry of Economy to raise prices against the backdrop of incurring large losses during the last period due to high production costs and production inputs of imported materials of feed and other materials and high international shipping costs at varying rates that reached record levels.
She explained that she carried out an analytical study to verify the demand in cooperation with a specialized advisory team on the cost of egg and chicken products, which concluded that the justified increase ranges between 13 and 20%, and the results of the study were submitted to the Supreme Committee for Consumer Protection, where the committee recommended approving the increase by a maximum of 13%.
She pointed out that this increase will contribute to protecting poultry and egg companies and farms from the negative effects of the high costs of producing these products and mitigating their impact, thus helping to continue the business of these companies and ensure their ability to provide egg and poultry products in the UAE markets at stable and reasonable prices, and in the required quantities that meet the needs of all consumers in all emirates of the country without a decrease in supply or interruption in the supply chains of these products in the country.
The ministry indicates that the 13% rate is a simple and justified percentage and is in line with the high prices of these products regionally and globally, and that it is a studied percentage in light of the high prices of raw materials and the requirements for egg and poultry production, such as feed, fuel and vaccinations, and the high international shipping prices, especially from Russian and Ukrainian ports, which are the main global supplier of grain in the feed industry, as well as the impact of large-scale changes in international markets, especially the increase in the state of inflation, the challenges of global supply chains and the fluctuation of exchange Currencies, rising freight rates and current geopolitical challenges.