Page 49 - AA 2024

UAE

the UAE’s poultry output is expected meat as the market is experiencing farms in the country are located in the
to rise slowly over the next few years. higher costs of manufacturing local and Emirate of Abu Dhabi. High dependence
With growing commodity costs, the overseas products. In the UAE, prices on a singular source will make it difficult
business keeps consumer prices stable are tightly controlled, and providers to stabilize prices during possible
by cutting production costs. Consumers must obtain Ministry clearance before economic downturns like a global
are becoming more conscious of good making adjustments. After six months, recession.
packaging claims and are actively the price rise will be evaluated, and
seeking local, fresh production that price increases may be adjusted or UAE Poultry Meat
contains no hormones or antibiotics and eliminated.
is produced directly from UAE farmers. • Although the rise of the poultry Industry Overview
• The UAE poultry production depends farming sector is a sign of encouragement The United Arab Emirates Poultry
on imports for nearly all inputs, from for market stakeholders, it will be Meat Market is fragmented, with the top
medicine, packaging, and equipment to challenging to scale poultry meat five companies occupying 18.30%. The
feed. These substantial cost increases production in the country. The Emirate is major players in this market are Al Islami
have challenged the production inhospitable to most forms of agriculture Foods, BRF S.A., Siniora Food Industries
capability and reduced profitability. because of its arid climate with nominal Company, Tanmiah Food Company and
Higher poultry prices were registered rainfall. In the United Arab Emirates, The Savola Group.
in the country, attributed to higher input precipitation dropped from 70.46 mm in
costs, eroding much of the margin gains.
From September 2019 to September
2021, feed grain prices increased by
55% in the country.
• Higher input costs have been
exacerbated by the UAE government,
a set price ceiling or cap within local
coops, and other retail establishments
that sell primarily to the Emirati
community. The UAE government
maintains a price cap of USD 5.85 plus
VAT on all fresh chicken sold within the
United Arab Emirates, and retailers may
not exceed this price; while the price
cap is occasionally adjusted, the policy
keeps production from expanding
further.
Higher production costs are impacting
the market prices
• The price of poultry meat in the
United Arab Emirates increased by
0.96% in 2022 from the previous year. 2020 to 51.46 mm in 2021. Most poultry
Poultry meat price is primarily driven
by increasing demand and dependency
on imports. The climate in the Emirates
has also played a role in influencing
the poultry meat price in the country.
Historically, there has been a seasonal
slump in demand for poultry meat in the
summer, and 10% of the chicken meat
sold in the Emirate is frozen.
• Following the issuing of Ministerial
Resolution No. 41 of 2023 earlier in June,
the Ministry of Economy authorized
the price rise in March 2023. With
this issue, shops in the UAE will be
legally permitted to raise the price of
eggs and poultry meat by up to 13%.
This change in prices was a result of
the demand made by retail firms to
increase the prices of egg and poultry

Arab Agriculture 2024 47