Co-ops refuse to hike prices; companies cut supply

KUWAIT CITY, Oct 15: The price of eggs in parallel markets increased by 25 percent and the price hike rate is expected to reach 40 percent soon due to the increase in feed prices, spread of bird fl u and monopoly of a certain egg-producing company, reports Al- Jarida daily. In view of an unjustified price hike, the Consumer Protection Association demanded for the State’s intervention by establishing a local company to produce eggs in order to stabilize prices. Meanwhile, the Union of Cooperative Societies confirmed that it rejected the request of egg producing companies to increase prices; stressing this is one way of protecting consumers from the greed of some companies. It has been observed that the main and subsidiary markets in cooperative societies have no or limited supply of eggs.

A source from the cooperative sector revealed to the daily that companies supplying eggs to cooperatives reduced the quantities delivered daily – more than 60 percent reduction. This is reflected in the absence of eggs in cooperative societies which maintained the price of the commodity; while poultry companies increased their sales to parallel markets, some of which raised the price of eggs by nearly 40 percent.

In addition, Head of the Consumer Protection Association Mishaal Al-Manea disclosed they found out that the price of eggs increased by 25 percent and it is likely to reach 40 percent soon; because of the increase in feed prices and talks about the spread of bird flu, which contributed to reducing production, and consequently, the lack of supply. He pointed out these causes and price hike rate are illogical. Al-Manea pointed out the country has egg production companies and the Ministry of Commerce has banned the export of its products, so there must be abundant supply in the local market. Kuwaiti companies can achieve selfsufficiency in terms of egg supply for the local market, he concluded.