The Egg Price Crisis and Supporting Local Poultry Production

The major problem is that the Union of Cooperative Societies is ignoring reports, articles, and media interviews with producers, all of which point to the alarming rise in global feed prices and their impact on all meat and protein products, especially eggs. Egg prices in the Gulf states and the Arab world can be found in the media. We emphasize that recently, the Union of Cooperatives increased the prices of imported poultry and other food products by 6% to 12% without any objection. The biggest problem is that officials in the cooperatives claim that the cause is the greed of merchants and that high prices must be combated. Therefore, we wish to clarify that producers are Kuwaitis, not merchants who buy and sell; they are engaged in local production based on modern technology and face significant risks such as diseases, shortages of raw materials like chicks and medications, as well as labor shortages and high costs. We reiterate that in 2008, the price of corn from the milling company was 30 dinars per ton after subsidies, and soybeans were 70 dinars per ton. Now, corn prices have reached 98 dinars after subsidies, and soybeans are 250 dinars without any subsidies. As for the price of a plate of chicken in 2008, it was one dinar, and today it is two dinars. If producers request a 20% increase, they are labeled as greedy. As for the Federation’s threat to resort to direct imports and support importers by eliminating profit margins and covering import expenses, this logic is ineffective. The Federation of Associations, which is essentially a partner to every Kuwaiti food producer, should assist local egg production companies by providing this support and committing to immediate payment, not demanding free goods, not charging a breakage fee, supporting the association, not purchasing from middlemen, and committing to direct purchases from production companies. With these simple steps, you will obtain prices competitive with any price from anywhere in the world. The Federation must not forget that when importing, payment must be made in advance, before the goods arrive, which incurs additional costs. As for the Union requesting imported eggs of the same or higher quality than local production, this indicates a lack of knowledge regarding Gulf, Arab, and international standards for the classification of fresh eggs. Gulf Standard Specifications (6/1/1/4) stipulate the use of the term “Excellent” _ “fresh” on packages containing first-grade eggs, provided that the word “excellent” is removed three days after the packing date by marketing and retail centers. Article (6/1/5) also stipulates that transportation and distribution must be carried out in refrigerated or thermally insulated vehicles, with the temperature not exceeding 10°C. This means it is impossible to import fresh, “Excellent” eggs, even if they were shipped by rocket. Therefore, I advise the Union of Cooperative Societies to support the poultry industry in Kuwait and assist them in the following areas: 1. Monitor feed prices and adjust prices according to the cost of incoming feed. 2. Meet periodically to discuss all issues. 3. Provide direct payment for purchases so that producers can buy the necessary feed. 4. Cooperating with the Ministry of Commerce and the Agriculture Authority to provide feed at prices affordable to consumers. 5. Requesting that the milling company purchase soybeans in bulk and ship them by vessel for distribution to producers, thereby helping to reduce feed prices. 6. Government agencies must subsidize feed and assist egg and poultry producers in expanding their farms, accessing soft loans, and including eggs in the ration card program, similar to frozen chicken and local milk. Without direct or indirect support, the poultry industry will grind to a halt, and it is not easy to obtain fresh eggs from abroad at any price.