The United Arab Emirates’ Ministry of Economy announced a temporary increase in egg and poultry product prices on Saturday, March 18, which is limited to an increase of up to 13 percent. The increase in price was made based on a resolution, Ministerial Decision No. 41, of the Ministry of Economy issued on March 6.
It also stated that the measure was taken in response to a request made by several companies involved in the sector, who claimed they had suffered significant losses over the previous period due to the high cost of manufacturing and worldwide shipment of eggs.
Price hike for eggs and poultry products
As the UAE is all set to welcome Ramadan 2023, the Ministry of Economy of the United Arab Emirates announced a price hike in poultry and egg products on Saturday.
An analytical study was conducted by the Ministry in collaboration with a skilled advisory team to determine the prices of eggs and chicken products.
A 13 to 20 percent price increase was considered acceptable based on the research the ministry conducted to confirm the companies’ demands. The findings of the study were then forwarded to the Supreme Committee for Consumer Protection.
The committee recommended that a maximum increase of 13 percent be approved at both the federal and local levels.
Essential goods such as cooking oil, eggs, fresh milk, rice, sugar, fresh chicken, bread, wheat, cleaning detergents, lentils, chickpeas, and beans are subject to price controls by the UAE government.
Egg and chicken product prices are regulated and cannot be raised without the ministry’s prior approval.
Supermarkets must acquire authorization if they want to charge more than what the authorities have authorized. The long-standing approach is credited for maintaining inflation at approximately 5 percent, which is less than half of what it was in the US and UK last year.
The ministry took into consideration the current costs of raw materials and other necessities for the production of eggs and poultry, such as fodder, fuel, and vaccinations, as well as the high costs of international shipping, particularly from Russian and Ukrainian ports, which are the primary sources of grains used in the feed industry on a global scale.
The Ministry of Economy stated that the rise in egg and poultry product prices in the UAE is in line with the provisions of federal Law No. 15 of 2020 on consumer protection as well as other relevant laws and regulations that are intended to maintain food security across all national markets and ensure a balanced relationship between companies and consumers.
In a statement after the decision was made, the Ministry of Economy made it clear that ” considering the changes in the local, regional, and worldwide marketplaces, if the circumstances that gave rise to the resolution do not continue to exist, the resolution itself would not continue to exist“.
It was made clear by the Ministry that the price rise would help protect chicken and egg producers from the adverse repercussions of high production expenses and decrease their impact.
This way, producers may continue to sell eggs and poultry products in the nation’s marketplaces at fair prices and in sufficient numbers to meet all consumer demands across the nation without compromising supply chains and market effectiveness
A strong response to the news of the price hike for eggs and poultry products was expressed on social media hours after the UAE Ministry of Economy made the announcement.
Since the price hike was announced a few days prior to the beginning of Ramadan, people had strong opposition to the decision.
With the new decision made by the Ministry of Economy, many influential people commented that rather than raising rates, the custom during the holy month of Ramadan is to cut prices and offer discounts to the public.
The 13 percent increase is straightforward and justified, according to the Ministry of Economics, and it is in accordance with the cost of these goods both locally and internationally.
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According to the Ministry of Economy, the price rise must be cancelled or reduced after six months if the reasons for the increase cease to exist as a result of market improvements.
The Ministry of Economy of the United Arab Emirates was established in 1972 as per the Federal Law No. 1 of the UAE. The ministry was instrumental in creating a business-friendly environment and crafting policies that would enhance the UAE’s standing as a regional and international economic center.
Reports show that in 2022, the world’s food prices were among the highest on record due to drought, unpredictable fertilizer supply, and Russia’s conflict in Ukraine, which increased inflation and made famine worse.
Among the commodities that were most severely impacted by inflation were grains and vegetable oils. In 2023, more than 90% of lower-middle-income countries reported at least a 5-percent increase in food costs year over year, according to the World Bank’s Food Security Report.