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FINANCIAL NEWS
Almarai Dairy forced to reduce milk prices
04 Aug 2011
(MENAFN) Almarai Dairy Company said that it was forced to reduce its milk prices after consumers protested over the unjustified increase of the two-liter bottle of fresh milk by 14 percent, reported Thenational.
Saudi Arabia’s largest food producer said that the production costs have jumped because of the rising price of raw materials such as feedstock, which has gone up by 40 to 60 percent in the past year. Moreover, the price of packaging material has also gone up by about 30 percent.
Almarai added that in compliance with the with the resolution issued by the ministry, Almarai is taking the price of its 2 litre fresh milk and laban pack sizes in the kingdom of Saudi Arabia to the level that prevailed with immediate effect.
It is worth mentioning that the ministry of commerce and industry issued a resolution that warned dairy companies they could be penalized for arbitrarily increasing prices of fresh milk and laban packs.
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