Companies That Produce Poultry Are Warning Of Closures For Several Reasons

With the decline in egg prices while the cost of fodder has climbed and the state's ban on the export of eggs, a number of poultry and egg production enterprises have urged that they be supported in order to avoid losses and closures.

According to a local Arabic newspaper, Kuwait produces approximately two million eggs every day and has 30% excess, prompting enterprises to offer a carton of 360 eggs for 8 dinars, despite the official price established by the Ministry of Commerce being 12.6 dinars.

The rise in feed prices and the state’s prohibition on poultry companies exporting their chicken and egg products, according to Tawfiq Al-Saleh, Chairman of the Board of Directors of Mubarakiya Poultry Company, are two major factors that may force the companies to close their doors if they continue to lose money.

"Two local enterprises have already closed their doors due to their unwillingness to suffer losses," Al-Saleh said, "and the state ignoring our demands, in subsidizing fodder and opening the door for export, especially since we have a surplus that covers the local market."

"How do firms make a profit, amid this surge and the stability of the price of a kilo of live chicken in Kuwait at just 850 fils?" he wondered, explaining that imported fodder prices rose from 270 to 870 dollars per tonne.

In turn, Hamid Al-Wuhaib, Chairman of the Board of Directors of Al-Wuhaib Poultry Company, confirmed to the daily that Kuwait has a 30 percent surplus of egg production and that selling it at a low price has resulted in significant losses for poultry companies, not to mention the high feed prices that have exacerbated the crisis, pointing out that the price of soy has risen from 400 to 880 dollars per tonne, where there is a shortage of it in the world, and to add insult to injury the Kuwait Flour Mills Company raised the price of corn from 65 to 123 dinars per ton.

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