A shortage of coveted Jaziri and Kashmiri lambs from Iran and India has sent prices soaring in the livestock market at Mina Zayed in Abu Dhabi, with demand high for the Eid Al Fitr holiday, when up to 55,000 animals are expected to be slaughtered for celebratory feasts. Ravindranath K / The National
A shortage of coveted Jaziri and Kashmiri lambs from Iran and India has sent prices soaring in the livestock market at Mina Zayed in Abu Dhabi, with demand high for the Eid Al Fitr holiday, when up toShow more

Livestock shortage raises price during Eid



ABU DHABI // A livestock shortage has caused prices to skyrocket at the Animal Market in Mina Zayed.

As animal traders have faced supply shortages for about four months, this has led to price increases and hampered sales as well.

According to local traders, a shortage of highly sought-after Iranian Jaziri sheep has caused the price of other sheep to rise.

With the summer heat and high ocean tides keeping small cargo ship offshore, Kashmiri and Indian sheep are also not being traded.

“Jaziri and Kashmiri are not coming here nowadays,” said livestock trader Rahim Ullah. “It’s been four months that we haven’t had Jaziri and for two months we haven’t received Kashmiri sheep.

“These two varieties keep the market rolling but when their supply is affected it causes the price of all other livestock, like goats and sheep, to rise,” Mr Ullah said.

“In the absence of Jaziri sheep, now we are buying local goats at higher prices.”

Mr Ullah, a Pakistani who owns Al Salsabil Catering, said he hoped the market would stabilise after Eid Al Fitr when demand decreased.

A 10-kilogram Jaziri or Kashmiri usually sells for Dh450, he said. These days, however, the price is nearly double at Dh800. Somali sheep, he said, which were obtained in Dubai, were selling for Dh600 for 15kg. Three months ago they were Dh350.

Najdi and Naeemi sheep, which are raised locally, are Dh850 for a 12kg animal. Their price four months ago was Dh650. Local goats are going for Dh800 for 12kg, about Dh200 more than usual.

The increased prices has drawn numerous complaints from customers wanting to buy goats for Eid Al Fitr. Goats weighing less than 10kg have tender meat and are considered good so their prices are competitive.

Abdullah Al Hashimi, an Emirati who bought four local goats for Eid, paid between Dh750 and Dh800 after much bargaining.

“We always prefer local goats as they are checked by veterinarians and free from any disease,” he said. “But due to a shortage of Jaziri and Kashmiri sheep in the market, prices shot up and we have to cough up more for them.”

Mr Al Hashimi said he was able to buy at a lower price because he was friends with the trader. “If you go to Baniyas livestock market, it could cost you Dh1,000 or more.”

Trader Daulat Khan was selling old Kashmiri sheep. An 18kg animal was Dh600, while two months ago it would have cost Dh450.

“These are old sheep that I got more than four months back and weigh too much. People don’t like them,” said the Pakistani who runs Mohammed Salem Mohammed Livestock & Sheep Trading Establishment. “Nothing is coming from India and Iran now.”

Nisar Afridi wanted two Somali sheep but could not get a lower price.

“I’ll get two and slaughter them at my garage in Mussaffah and start barbecuing with friends after Eid prayers,” he said. “We slaughter them ourselves and cut them into pieces, then all our 12 friends who gather there celebrate.”

The municipality, however, discourages home slaughtering and encourages people to use government slaughterhouses.

The Department of Municipal Affairs said up to 55,000 animals would be slaughtered by the end of Eid.

The Abu Dhabi Farmers’ Services Centre, meanwhile, has increased its supply of fresh local meat to retail outlets to meet the increased demand.

anwar@thenational.ae

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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