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Fresh milk prices on the rise
By Shahid Ali KhanSaudi Gazette
Published in The Saudi Gazette on 06 - 07 - 2011

Dairy producers are likely to raise the price of fresh milk after a leading Riyadh-based dairy company added SR1 to their two-liter bottle effective from July 3.
Almarai Dairy Company raised their price, a hike of about 14 percent on a two-liter 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.
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 feedstock, which has gone up by 40 percent to 60 percent compared to last year. The price of packaging material has also gone up by about 30 percent, 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 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 liters. Saudi Arabia has about 22 dairy farms including three large ones.
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