The UAE markets have been facing around 70 per cent shortage in fresh chicken stock over the last two months as major supplier has stopped production, according to a report.
Arabic daily Al Bayan reported that the UAE’s biggest poultry producer Emirates Modern Poultry, popularly known as Al Rawda, is carrying out renovation of its facilities and has stopped production, resulting in a massive shortage of poultry stock across the country.
Sources at the cooperative societies have confirmed a shortage in the availability of poultry.
Farid Shamandi, Director general of Emirates Cooperative Society, said “the market suffers from a significant lack of fresh chicken, which ranges between 60 to 70 per cent on weekdays and goes up to 80 per cent on weekends.”
He attributed the shortage to the temporary halt in the production of Al Rawda, which is one of the largest producers and distributors in the domestic market.
Though there are a five other local suppliers of fresh chicken as well as a Saudi and an Omani supplier, together they have failed to fill the huge gap left by Al Rawda, he added.
The cooperative society currently receives 350 cartons per day, as against 600 cartons it used to receive previously.
However, Shamandi assured that the shortage won’t affect the prices of fresh chicken, which is set at Dh17 per kilo by the Ministry of Economy.
Ibrahim Al Bahr, Deputy Director General of the Union cooperative society also admitted to a 70 per cent shortage in the supply of fresh chicken.
According to Al Bahr, officials from Al Rawda poultry have promised to restart the full production from July 2011, following a complete upgrade of their system.
However, the lack of fresh chicken has also increased pressure on the frozen chicken supplies, which is dominated by Omani and Brazilian suppliers.
Curiously, Emirates Modern Poultry, the producers of Al Rawda, is seeking a hike fresh chicken prices, citing continuous inflation in fodder and oil prices, which add to the cost.
Dr. Al Rashid Dafalla, General Manager of Emirates Modern Poultry, said “We have submitted a request to increase the price of fresh poultry with the Department of Consumer Protection in the Ministry of Economy, because the prices of fodder and oil are rising continuously.”
He added that the market is currently suffering from a significant increase in the price of feed, which accounts for 60 per cent of the cost of production.
Attributing the hike in feed prices to the increase production of biofuels, he said continuous diversion of food items like corn, maize and soy into the production of biofuel will result in unaffordable food prices.