Almarai Company Monday canceled its recent SR1 increase in the prices of its two-liter fresh milk and laban packs. The decision comes in compliance with the Ministry of Commerce and Industry resolution which Sunday warned dairy companies against arbitrarily increasing prices of fresh milk and laban packs. Commerce and Industry Minister Abdullah Bin Ahmad Zainal Alireza issued a decision to subject fresh milk and laban prices to rules addressing the supply of goods in extraordinary conditions. The minister's directives said that whoever increases prices or refuses to sell at prices specified for fresh milk and laban packs will be considered to have violated rules stipulated in the Council of Ministers decision No. 855 dated May 26, 1975 (26/5/1396H) and face the penalties spelled out in the decision. Almarai increased the prices of two-liter fresh milk and laban packs from SR7 to SR8 from July 3. Al-Safi, the second largest dairy company in the country, followed Almarai when it increased the price of the two-liter pack of laban from SR7 to SR8. Dairy producers claim the price hikes are necessary because of the increasing cost of raw materials, including a 60 percent rise in fodder, soya beans and plastic. There are about 12 brands of dairy products available in the Kingdom. – SG The total daily production of fresh milk amounts to 4.3 million liters. Saudi Arabia has about 22 dairy farms including three large ones. The Kingdom with a population of 28 million has remained the largest market for food and beverage in the Gulf region. The country represents 63 percent of the $9 billion GCC food market. __
