Media ININ Economy We Trust
Abu Dhabi, March 18 / The Ministry of Economy stated that the approval to raise the prices of eggs and poultry products by a maximum of 13%, which was made pursuant to Ministerial Resolution No. 41 of 2023 issued on March 6, 2023, comes within the framework of the Ministry and its partners’ keenness to ensure a balanced relationship between the merchant and the consumer. And maintaining food security in all markets of the country, in line with the provisions of Federal Law No. 15 of 2020 regarding consumer protection, and related laws and decisions, noting that this increase is temporary, and that the extent of the need for its continued application will be assessed within 6 months from Now, in the event that the reasons for it are absent in light of developments in the local, regional and global markets, then it will be canceled or amended.
The ministry states that this step was taken against the backdrop of 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 as a result of high production costs and production inputs from imported materials such as fodder and other materials and high shipping costs. Internationally, in varying proportions, it reached record levels.
The Ministry states that it has carried out an analytical study to verify the demand in cooperation with a specialized advisory team on the cost of egg and chicken products, which concluded that the justified increase ranges between 13 and 20%, and the results of the study were submitted to the Supreme Committee for Consumer Protection – which includes in its membership all the concerned authorities. At the federal and local levels, as well as experienced members – as the committee recommended approval of the increase by a rate not exceeding 13% as a maximum.
The Ministry clarifies that this increase would contribute to protecting poultry and egg companies and farms from the negative effects of the high costs of producing these products and mitigating their impact, in a way that helps the continuity of the business of these companies and guarantees their ability to provide egg and poultry products in the country’s markets at stable and reasonable prices, and in the required quantities that meet All consumer needs in all emirates of the country without a decrease in supply or interruption in the supply chains of these products in the country.
The ministry indicates that the 13% rate is a simple and justified rate that is in line with the high prices of these products regionally and globally, and that it is a studied rate in light of the high prices of raw materials and the requirements for egg and poultry production, such as fodder, fuel and vaccinations, and the high international shipping prices, especially from Russian and Ukrainian ports that It is the main global supplier of grains used in the feed industry, in addition to the impact of the large-scale changes taking place in the international markets, especially the increase in inflation, the challenges of global supply chains, the fluctuation of currency exchange, the rise in freight rates, and the current geopolitical challenges.
The Ministry of Economy confirmed that eggs and poultry products are among the commodities whose prices cannot be raised in the market without prior approval from the Ministry, and that the step of raising the prices of these products comes in implementation of the policies in force and is in line with the powers and specializations of the Ministry and in accordance with the pricing policy that was recently launched by virtue of a decision. Cabinet No. 120 of 2022 regarding the rules and controls for pricing consumer goods in the country.
In conclusion, the Ministry of Economy stresses the importance of awareness that the rise in commodity prices represents a global challenge, and that the Ministry is constantly working on studying any global rises in the prices of major commodities to work in an integrated manner and according to a clear policy to limit the impact of any uncontrolled rises in the global prices of those commodities on products. final markets in the country, and reduce the impact of those hikes to a minimum on consumers, in a way that guarantees a balanced relationship between the merchant and the consumer.
