Australian meat invades the Iraqi market
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Economy News - Baghdad
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Added 03/04/2024 - 9:47 AM
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A butcher sells meat
A butcher sells meat
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Economy News - Baghdad
The significant increase in meat prices in Iraq has led to resorting to imported meat, including Australian meat, which now constitutes a large percentage of local market sales, and the majority of restaurant and food store owners rely on it, due to its low price, compared to local meat prices.
According to traders, the prices of sheep and cow meat have increased throughout all governorates of Iraq, with the price of one kilogram ranging between 23 and 24 thousand dinars (about 16 dollars).
Meanwhile, specialists believe that the rise in prices is due to drought and the high cost of animal feed, in addition to the increasing demand for meat, as it is an essential item on the Iraqi table.
As a result of the rise in meat prices, the Ministerial Council for the Economy in Iraq decided last Tuesday to reduce customs duties on imported livestock and sheep by 50% for a period of one year.
The Council's media office stated, in a statement, that the Ministry of Agriculture's request to import livestock was approved, and it was also approved to reduce customs duties on live animals imported for slaughtering and breeding purposes (livestock and sheep) by 50% for a period of one year.
The Veterinary Department of the Iraqi Ministry of Agriculture confirmed that large numbers of calves imported for slaughter purposes had entered the country.
Director General of the Veterinary Department, Thamer Habib Hamza, said that the reasons for the high prices of local meat, although they are subject to supply and demand, are due to the greed of merchants on the one hand, as well as the high prices of feed on the other hand.
Hamza added that the prices of imported meat also rose due to the turmoil in the global situation, especially after the events of last October 7 in Palestine, and the security tension witnessed in the Red Sea, which led to a reduction in the import of animals and livestock.
He pointed out that his ministry had prepared a plan to allow the entry of this type of livestock imported for slaughter purposes into the country, with the aim of resorting to alternatives that would reduce meat prices during the coming period, especially with the advent of the holy month of Ramadan.
A number of butchers and livestock traders spoke of their suffering from the rise in livestock prices, which led to a significant rise in meat prices, and that a large number of butchers closed their shops due to the invasion of Australian meat into the Iraqi market.
A butcher from Baghdad, Safaa Saleh, said that the price of a kilogram of veal meat exceeded 20 thousand dinars, while the price of a kilogram of lamb meat exceeded 24 thousand dinars (the dollar = about 1,310 dinars), and this significant increase amounted to 90 to 100%, compared to what it was. Meat prices at the same time last year.
Saleh explained that citizens resorted to imported meat, including Australian meat, the price of which reached 10,000 dinars per kilogram, even though these types do not suit the taste of the Iraqi citizen.
He confirmed that a number of butchers closed their shops a few days ago due to the high prices of calves and sheep, their inability to sell meat at high prices compared to the purchasing power of citizens, and the deterioration of the living situation in general.
For his part, the livestock trader from Anbar, Ismail Muhammad, said that the livestock (cows, sheep, and goats) that are relied upon in the market during these days are imported from outside Iraq, including Australian, Afghan, and Iranian ones.
Muhammad pointed out that the price of a local sheep exceeded 450,000 Iraqi dinars (about 300 dollars), and that the sale of local livestock has declined greatly due to the departure of livestock breeders to the mainland areas for natural grazing, and the increasing numbers of livestock imported from abroad.
For his part, Director of the Epidemic Diseases Department in the Ministry of Agriculture, Thaer Sabri, said that the Australian meat on the market is unlicensed and entered Iraqi territory unofficially.
Sabri added that he met with the former Australian ambassador to Iraq, Paula Ganley, and asked her to update the health certificates for Australian meat and livestock in order to allow their official import, but the certificates have not been updated yet.
He stressed that his ministry has not yet approved the import of Australian livestock and meat, and that the Australian livestock and livestock products that invade the Iraqi market entered illegally, due to the lack of an official license.
Sabri pointed out that Australian meat is considered unsafe, and imported meat is in violation of the health controls and laws in force in Iraq, as long as it does not obtain an official health accreditation issued by the Epidemic Diseases Department of the Veterinary Directorate in the Iraqi Ministry of Agriculture.
Commenting on price developments, economic researcher Ahmed Sabah confirmed that meat prices are subject to the law of supply and demand, in accordance with economic law. The rise in index prices in the market came due to the increased demand for meat by Iraqi citizens.
Sabah added that demand has increased due to religious and social events at these times every year, in addition to the approaching month of Ramadan.
He explained that the number of livestock in Iraq, according to official statistics, reached 20,426,727, of which 16,520,742 are sheep, and the rest are goats, cows, buffalo, and camels. Although this figure is acceptable, the supply of local meat has decreased significantly.
Sabah attributed the reason for the limited supply of local meat to the state’s failure to provide the necessary fodder and support its production, in addition to poor veterinary care for livestock, and the lack of water, which led to the migration of breeders and their search for alternative means of living.
Sabah stated that the majority of imported meat and livestock are not subject to economic feasibility, and the Federal Council’s decision to open imports is not a radical solution to this crisis, but rather a temporary treatment that will reflect negatively on the size of Iraqi livestock, stressing the importance of establishing strict controls for the entry of animals through border crossings, as It has health and economic impacts.
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