Temporary increase in egg, poultry prices aims to ensure balanced merchant-consumer relationship: Ministry of Economy

Temporary increase in egg, poultry prices aims to ensure balanced merchant-consumer relationship: Ministry of Economy

ABU DHABI, 18th March, 2023 (WAM) -- The Ministry of Economy said that increasing prices of eggs and poultry products in the UAE comes in accordance with the provisions of Federal Law No. 15 of 2020 on consumer protection, and relevant laws and decisions that are aimed at ensuring a balanced merchant-consumer relationship and preserving food security across all marketplaces at the national level. The Ministry clarified that the price hike is temporary, and will be assessed within six months.

“Should the grounds that gave rise to the resolution cease to exist, the resolution itself would cease to exist, considering the changes in the local, regional, and global marketplaces,” added the ministry in a clarification issued today on the recent approval of increasing by a maximum of 13 percent the prices of eggs and poultry products in the UAE.

The ministry said the increase is based on a resolution it issued on March 6, adding that this step was taken following a request submitted by a number of companies operating in the sector purporting that they had incurred significant losses over the last period as a result of high production costs and production inputs from imported material, including fodder, and increasing shipping costs.

According to the Ministry, it conducted an analytical study to determine demand in collaboration with a specialised advisory team on the prices of egg and chicken products, which concluded that a justified increase could range between 13 and 20%. The study's findings were then submitted to the Supreme Committee for Consumer Protection, which recommended that the raise be approved at a maximum rate of 13%.

The Ministry made it clear that this price increase would help shield poultry and egg producers from the adverse effects of high production costs and lessen their impact. This would ensure that the producers could continue to sell eggs and poultry products in the country's markets at stable and reasonable prices and in sufficient quantities to satisfy all consumer demands across the country without compromising supply chains and market efficiency.