UAE approves temporary hike in prices of eggs and poultry products by a maximum of 13%

Gulf Today, Staff Reporter

The Ministry of Economy (MoE) has approved a temporary hike in prices of eggs and poultry products by a maximum of 13%.

The Ministry, in a statement issued on Saturday, explained that the approval took place pursuant to the Ministerial Resolution No. 41 of 2023 issued on March 6, 2023, noting that the step comes within the Ministry’s keenness to ensure a balanced relationship between merchant and consumer, and to maintain food security.

MoE took into account the provisions of Federal Law No. 15 of 2020 regarding consumer protection, and related laws and decisions, the statement added.

It also indicated that this increase is temporary, but it will be assessed within 6 months from now, to decide whether to continue, be canceled or modified, based on developments in the local, regional and global markets.
 
“This step was taken in response to a request submitted by a number of companies operating in this field in the country to the Ministry of Economy to raise prices, on the grounds that they incurred large losses during the last period due to high production costs,” the Ministry said.

The Ministry also pointed out that it had carried out an analytical study to check the request in cooperation with a specialized advisory team on the cost of eggs and chicken products.

“The study concluded that the justified hike ranges between 13-20%,” the Ministry stated.
The results of the study were submitted to the Supreme Committee for Consumer Protection - whose membership comprises all concerned parties at the federal and local levels, as the committee recommended approval of the hike by maximum of 13%.

The Ministry noted that the temporary hike in prices would contribute to protecting poultry and eggs companies and farms from the negative effects of the high production costs and mitigating their impact. In addition, it ensures sustainability of the business of these companies and guarantees their ability to provide eggs and poultry products in the country’s markets at stable and reasonable prices. They will be also able to meet the consumer needs in all emirates of the country without a decrease in supply chains of these products.

MoE also indicated that the 13% hike is simple and justified, and it goes in line with prices of these products regionally and globally.

“This proportion of temporary hike has been studied in light of the high prices of raw materials and the requirements for eggs and poultry production, such as fodder, fuel and vaccinations, as well as the high international shipping prices, especially from Russian and Ukrainian ports that are considered the main global supplier of grains used in the feed industry,” the Ministry said.