Australian goats have become expensive owing to severe shortage, and the trend is likely to continue even after Eid holidays. Although Somali goats are available in abundance and at a reasonable price, the Australian variety is highly sought after because of its quality.
Wholesalers say that about 40,000-50,000 goats from Australia were imported three years ago for occasions like Eid, but this time, only 6,500 could be procured, which has led to a price escalation, with the cost of each animal going up to RO95.
Also, some livestock companies have said that Public Authority for Consumer Protection's (PACP) decision to fix the price of Australian livestock has affected profit margins. PACP on Saturday fixed the price of Australian livestock at RO85 for Muscat and RO90 for other wilayats.
Leading importer Al Batna Livestock is the only company to have procured Australian goats for Eid. "We imported only 6,500 animals two weeks ago to cater to the festival demand, because there has been no demand for live Australian animals for the last eight months. We also incurred losses during the last couple of years because of high price by the exporter," said Raghunathan, manager, Al Batna Livestock.
Naveed Ahmed, general manager, Muscat Livestock Company, said he had not heard from PACP until Sunday afternoon. "I was informed of a PACP raid at my animal farm in Ibra at around 1pm. The officials asked why we were selling animals for more than RO90." Ahmed justified the price hike, saying he had bought the livestock from the importer for RO90 each. "After feeding, maintenance and labour charges, we earn about RO1 per animal when sold for RO95. If PACP wants us to sell below our profit margins, they should provide a subsidy. We are in talks with the authority to reach a solution."
Raghunathan said that when the stocks first arrived, his company had sold livestock for RO90 per animal. "The wholesalers who came first chose the best at RO90 per animal. The less sturdy ones went for a little less."
He added that Oman is not able to compete with other GCC states like Qatar, Bahrain and Kuwait, which provide subsidies on livestock. "For us the price has been going up consistently. Apart from the high asking price in Australia, veterinary charges of 100bz per animal imposed by the Ministry of Agriculture are an additional burden."
His company has agreed to sell the remaining livestock for RO85 in Muscat. "We have given in to PACP's demands and will be selling at the rate fixed. It will be tough to make a profit in Muscat, but we will manage a little on sales outside Muscat."
Ahmed added that the market had adequate stocks of the Somali variety. "With Somalia close to Oman, there are few logistical hurdles, and the market here is flooded with animals from that country priced RO35 to RO40."
Wholesalers Arabian Livestock and Buraimi Livestock Company have not bought animals for Eid because of the high prices. "We couldn't get the stocks at reasonable prices, and as we only deal in Australian livestock, we are out of business for the time being," said Ahmed Koli, manager, Arabian Livestock.
© Muscat Daily 2011
