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Fresh Milk Prices On The Rise

06 July 2011

SAUDI ARABIA - Dairy producers are likely to raise the price of fresh milk after a leading Riyadh-based dairy company added SR1 to their two-litre bottle effective from July 3.

Almarai Dairy Company raised their price, a hike of about 14 per cent on a two-litre bottle of fresh milk, which is now sold in the market for SR8. Muhammad Anwar Jan, chairman of the National Dairy Committee, Council of Saudi Chambers of Commerce and Industry (CSCCI) said Almarai Company raised the price unilaterally.

Mr Jan said others, with the exception of the National Agricultural Development Company (NADEC), might take a similar step because of the increase in the cost of milk production.

He said milk production costs have risen because of the high costs of raw materials such as feed, which has gone up by 40 per cent to 60 per cent compared to last year. The price of packaging material has also gone up by about 30 per cent, he said.

"However, Nadec has ruled out any increase in fresh milk prices," he said.

Others in the dairy industry are still considering whether to increase or keep the prices as they are, said Mr Jan. There are about 12 brands of dairy products available in the Kingdom.

The total daily production of fresh milk amounts to 4.3 million litres.

TheCattleSite News Desk


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