Butchers Implement Service Fee Amid Price Control Measures
In a bold move to counteract the government’s price control on lamb meat, butchers in the north have introduced a service fee for their customers. This fee, ranging between 10 and 15 percent of the retail price, is a direct response to the government’s decree limiting the sale price of lamb to 500TL (€15.89) per kilogram. The new service charge is seen as an attempt by butchers to maintain their income levels despite the mandated price cap.
Opposition leader Tufan Erhurman of the CTP party criticized the price controls as a “risky legal instrument,” arguing that such measures should be agreed upon only after comprehensive discussions with all stakeholders. Erhurman expressed concern that these actions have eroded consumer trust and could accelerate a “southward shift” of the economy, exacerbating inequality among those unable to access cheaper meat prices in the south.
The issue of meat pricing has broader implications, with Turkish Cypriots increasingly purchasing meat from the Republic where prices are lower. This trend has also led to instances of meat being smuggled into the north, as evidenced by recent police seizures of illegally imported beef.
Butchers in the north are feeling the pressure from both rising costs and a dwindling consumer base. In January, they protested by slaughtering two lambs and demanded that the government align meat prices with those in the Republic. Their plea highlighted the dire situation, with unsold meat being discarded and a significant drop in animal slaughter rates.
While the government’s intervention aimed to reduce meat prices for consumers, the introduction of service fees by butchers suggests dissatisfaction with the measures taken. This is not the first instance of resistance to price controls in the north; earlier this year, bakers opposed a similar decree on bread prices, which they claimed violated competition laws. The conflict was defused only after bakers met with the prime minister and reached an agreement with the economy ministry.
The ongoing struggle between government price controls and market forces continues to shape the economic landscape in the north, with businesses finding creative ways to navigate these regulations.
