Shortage causes price hike on some livestock in UAE

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Thursday, September 08, 2016


A livestock consignment next to a ship at Somalia’s Mogadishu port prior to exportation to the United Arab Emirates on November 18, 2015. PHOTO | ABDULKADIR KAHLIF |   NATION MEDIA GROUP  



Traders in Sharjah and Dubai felt the pinch as limited supply on a number of livestock was delivered this year, bringing in a price increase on some animals.

In the run up to Eid Al Adha, which starts from September 12, traders in Sharjah Animal Market and Al Qusais Cattle Market reported an overall shortage on Somali, Iranian and Turkish cattle.

While Sharjah traders lacked Somali livestock, only one or two shops in Dubai’s market sold Somali cattle starting at Dh900.

“Epidemic and economic conditions have affected the supply from some countries. There were restrictions on Somali, Iranian and Turkish stock, which makes the markets this year short in livestock,” said Vet Dr. Abdelaziz Yousri at the Sharjah Animal Market.

The market now has on display local, Naimi, Indian, Sudanese and Australian livestock.

Trader Ibrahim Al Souqi at the Sharjah Animal Market said he received a shipment of 170,000 animals this year. “There’s no livestock imported from Somalia or Turkey, but this year, the Jordanian cattle is new to the market,” he said.

Al Souqi reported stable prices overall, especially for Indian stock starting from Dh600 up to 1, 500 depending on the size.

Slight price increase

Pakistani trader Adda Hussain said Al Naimi stock this year experienced an average price increase of Dh200. From Dh1,500 last year, today it is Dh1,700. “We buy it at an expensive rate so we sell it accordingly to balance it out,” said Hussain.

Another Sharjah dealer Mohammed Iqbal said that Al Naimi livestock saw an increase from Dh800 last year to Dh1,200 for small sizes. He said the increase was due to the limited supply of Naimi livestock. “This year, I received a shipment of about Dh500 animals compared to 1,000 last year,” said Iqbal.

In some Sharjah shops, Al Naimi started from Dh1,500.

In Dubai, Naimi stock is going for a minimum of Dh1200 up to 2,200 depending on the size.

While Indian livestock witnessed stable prices ranging from Dh500-800 for the stock depending on its size, dealers expressed concerns regarding next year’s shipment that would fall during the monsoon ban on Indian stock, which happens during June, July and August every year. The monsoon ban resulted in a delay in the Indian shipment arrival this year.

“Next year, Eid Al Adha will come right in the middle of summer. We urge authorities to take precautionary measures and start receiving shipments early to avoid shortage in stock,” said Iqbal.

To avoid the heat during Eid next year, traders in Sharjah hoped for ventilation and air conditioning systems in the new cattle market, which was recently approvd by Sharjah Ruler and expected to be three times the size of the current market in Jubail.

Trader in Dubai Abdulhamid Mohammed said the price increase is about 150dhs on average, which is not a significant change from last year, for some livestock like the Australian. He said the quoted prices for Australian go up to 900.

A dealer in the Dubai market, also called Mohammed Iqbal, said that the overall market this year is slow. “With the shortage in the number of cattle, markets have to adjust so prices are rising to allow sellers to meet purchase costs,” he said.

Saudi (or Najdi) sheep stayed at roughly the same price, ranging from Dh1,100 for medium size to Dh1,800 for the big size.

Dubai Cattle Market witnessed similar prices for Saudi sacrifices starting from Dh1,100 to Dh1,500 per stock. Sudanese went for Dh1200, which was reportedly the same price as the past year.

Dubai dealer Mohammed Adnan said although some prices are higher, “bargains are possible within reasonable limits as some traders can negotiate around it to ensure mutual benefit for both parties,” he said.

Consumer concerns

Market consumers expressed concerns over sudden price increase closer to Eid.

Egyptian customer Ibrahim AbdelAziz said last year, he brought an Indian sacrifice that cost Dh700. He noted that while the prices are similar this year, some traders said they would elevate their prices closer to Eid.

“A trader is giving me a sacrifice for Dh650 now, but mentioned that later he might increase it to Dh800-1,000 during first day of Eid.”

AbdelAziz urged imposing strict regulations to avoid exaggerated market prices.

“The lack of monitoring systems sometimes leads to price hikes, especially of the demand increases during Eid with limited stock,” he said.

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