Support the increase in the price of broilers!

The chicken did not receive its share of the subsidized food basket, as it continued to be the subject of dispute between the Ministries of Agriculture and the Economy, on the one hand, and the Lebanese Poultry Union. So far, the path to lowering the price of this staple on Lebanese tables does not appear to be an easy one, due to this disagreement over “price.” Although the two ministries ask for a 30% reduction in prices from what they currently are, the Union has not yet given the green light, because this means “losing farmers and breeders, especially young people.”

The points of view have not yet converged and each one has its argument. Although the two ministries consider that reducing the price is possible due to the support of raw materials and fodder, the farmers affirm that the support received “does not constitute only 35% of the cost of broiler chicken”, while the rest of needs are “Vaccines, drugs and supplements.” The feed and the chicks … are laminated and bought at the market price ”, which affects their profit margin. Despite the arrival of the ship of subsidized feed about a month ago, prices continue to fly, so the price of raw chicken has reached 27 thousand pounds, and sellers resort to selling it in pieces at prices that reach 14 thousand pounds a kilo.
The poultry union has its reasons for not lowering prices. The director of the poultry farmer and distributor in Lebanon, Moussa Fraiji, attributes the matter to the fact that “chickens that were eaten on subsidized feed have not yet reached the market. Chickens need 50 days to grow, slaughter and be within reach of the consumer »! Consequently, Frigi set a period of two weeks for “the results of the support” to appear. As for the other reason, he relates, according to Friji, “that farmers and breeders did not receive the subsidized feed at the time specified above, and the quantities that arrived did not cover the needs of the market, which is reflected in the price disparities. “. In addition, the approval of the Ministry of Agriculture to support food additives, medicines and vaccines remains without effect, especially since the Banque du Liban has not signed the approval until now, which delays the arrival of the subsidized goods, and therefore “we We are forced to buy these materials at the market price given our need for them. Reflecting the price disparity and the delays in reaching an agreement on fixed prices, it was generalized to all farmers and traders ”.
Therefore, the support that limits Friggy is delayed. Regardless of its “rank”, the captain does not expect the total price of chicken to be around £ 6,900 again. The Union based its rejection of any return to the official price on a study it prepared for the cost of broiler, based on “the costs we pay in dollars and pounds according to the official exchange rate of 1515 and the subsidized price 3900.” The study shows that the whole chicken, for its price to be fair for both parties, “is supposed to be 11 thousand pounds, without packaging, and amounts to 13 thousand. The cost of the packaging (cork, nylon, absorbent papers and adhesives ) is calculated according to the market price in dollars “. Regarding the prices of the segment, Frigi fixed a price list, “so that a kilogram of wings becomes 14 thousand pounds, a kilogram of thigh in 11,500 pounds and a kilogram of breast with skin costs 28 thousand”. And it confirms that in conversations with those interested in the Ministry of Agriculture, “they agreed on the price of the chops, on the condition that the price of the grill remains at 6,900 pounds, and they told us: what is lost in chicken whole, you win in the stages “.

The breeders claim that the subsidy they receive constitutes only 35% of the cost of the broiler.

George Al-Hawa, Hawa Chicken Sales Director, confirms that the price of 6900 pounds for whole chickens “harms the rights of farmers and breeders and the exercise of championships at their expense”, stating that “the subsidy covers only 60 % of the cost of chicken, while 20% is paid by traders at the price of 7,500 “. Lira for a dollar, from chicks, medicines, spare parts for the slaughterhouse and cleaning medicines, and 20% of the salaries of the employees, electricity and diesel go because the incubation laboratories work on the generators to ensure 24 hours uninterruptible power supply. Consequently, the demand to lower prices is a “blow to the sector … Today we sell at less than cost because stopping the economic cycle is a greater loss.”
The Director General of the Ministry of Economy, Muhammad Abu Haidar, expressed “regret” that after the subsidy, prices in the poultry sector became “higher than they were”. He explained to “Al-Akhbar” that “the price of chicken breast was 19 thousand pounds, and with the subsidies it reached 24 thousand, and sometimes it reached 27 thousand”. In Abu Haidar’s opinion, “Equity dictates that the price of whole chicken should be around 11,000 pounds, provided that the prices of pieces and eggs are revised to reduce them. Traders have agreed to cut current market prices by 10%, except for full broilers, while the ministry demands a 30% rate, “and if this doesn’t happen, then this is the support.”

Subscribe to «News» on YouTube here