The UAE's Ministry of Economy (MoE) has allowed retailers in the country to increase the prices of eggs and poultry products temporarily.
The decision has been taken after retailers in the UAE requested the ministry to allow a price hike to cut losses.
The ministry will reassess the prices and market situation in a six-month time and take a decision.
Some of the retailers have increased prices of the two commodities in line with the ministry’s instruction to hike rates by a maximum of 13 per cent.
Retailers argued that production costs have increased drastically, hence becoming a challenge to maintain the current rates.
Below are the three main reasons that ministry allowed the prices of eggs and chicken to be increased in the UAE temporarily by retailers:
- The companies have reasoned that production costs, which involve the cost related to raw materials for poultry products, manpower and others, have grown for the producers, hence, they called on the ministry to allow hiking prices of the items. Some other countries are also faced with this dilemma where prices of poultry products have been increased due to supply chain challenges.
- Imported material: The poultry firms heavily rely on imported materials such as fodder for production and their prices have gone up as well, hence, producers said there is a need to increase local prices as well in order to slash losses. Due to imported material challenges, some of the companies have not been to meet production requirements and not supply frozen chicken to the market.
- Shipping costs: Retailers have blamed high shipping costs to import materials.
Copyright © 2022 Khaleej Times. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).