How did social media users address the “egg crisis” in Iraq?
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The egg crisis in Iraq is no longer just an issue related to the high price of a basic food item, but rather has become part of a broader discussion about the purchasing power of the citizen, the impact of the change in the dollar exchange rate in the markets, and the limits of the government’s ability to control prices without harming local production.
While the consumer is looking for a plate of eggs at a price commensurate with his income, farmers and poultry business owners fear that facilitating the entry of imported products will lead to increased competition and pressure on their projects, especially if the cost of local production is not able to compete with the prices of imports.
Between the rise in food prices and the decline in purchasing power, the Iraqi consumer finds himself facing a direct question: Why have egg prices increased, and will the new government measures succeed in returning them to appropriate levels?
In this context, participant Raysan Ali wrote in his account on the X platform: “A citizen from Najaf calls on the people to demonstrate and says that the price of three eggs has become a thousand dinars. I cannot buy them.”
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In an attempt to contain the rise in prices, Prime Minister Ali Faleh Al-Zaidi directed on October 8 to postpone the collection of customs duties and taxes imposed on imported eggs, chickens, and live meat, with the aim of supporting market stability and increasing the availability of these materials at reasonable prices for citizens.
The decision puts the government before an important economic test: Is it possible to increase supply through imports and reduce its cost, thus helping to reduce prices? Or might treating high prices in this way shift part of the burden to local producers, who depend on continued demand for their production to cover the costs of their projects?
The decision came at a time when Iraq is witnessing a change in the official exchange rate of the dollar, which opens a debate about the relationship between monetary policy, the cost of imports, and the prices of basic foodstuffs.
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The dollar...a key factor in the price equation
In the background of the discussion about egg prices, the dollar exchange rate emerges as one of the factors affecting trade and production costs. On October 7, the official exchange rate of the dollar was raised to 1,520 dinars, instead of 1,320 dinars, in a move that represents a change in the cost of the dollar for transactions that rely on the official rate.
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Here, participants like Hamid Al-Araj wonder: Is there a relationship between eggs and the dollar?
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In fact, the change in the dollar exchange rate gains importance in the poultry and egg market, because some production inputs, such as feed, medicines, equipment, and packing materials, may be imported or linked to foreign market prices, and these costs can increase pressure on producers and traders, and then reflect on the consumer.
But the rise in the exchange rate alone does not explain every increase in egg prices, as the costs of production, transportation, distribution, supply and demand volume, and profit margins interfere with it, and measuring its actual impact requires comparing price and cost data before and after the change.
The government is betting that postponing duties and taxes on imported products will help increase supply and reduce pressure on prices. However, the success of this step depends on the effect of cost reduction reaching the consumer, and not remaining limited to the import and distribution stages.
Important questions arise here: Will egg prices actually decrease in the markets? What is the size of the expected decline? When can the citizen feel the impact of the decision?
The local producer fears competition
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