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Low production, reduced imports raising country's poultry prices
By Joe Avancena
Published in The Saudi Gazette on 08 - 08 - 2011

Prices of chicken have gone up and expected to increase further due to lack of supplies, supermarket operators here have said.
“While the price of milk has been controlled thanks to King Abdullah, the prices of chicken continue to rise because of limited production in Saudi poultry farms and declining output from exporting countries like France and Brazil,” said Sayed Salem, General Manager of Farm 9 in Al-Khobar.
Supermarket managers said the prices of chicken have gone up by at least two riyals. Breast chicken weighing 800 grams is now priced SR12.95, up by SR2.95 from SR10 before the advent of Ramadan.
The 1,000-gram chicken is now SR14.95, which used to be SR12; while the 900-gram chicken now costs SR13.95, up by SR2.95.
Salem said local poultry farm operators have to increase their prices because they too have to compensate for the hike in production costs, like feeds. “Even in this part of the world, we have not been spared from the effect of the global recession, triggering low food production and consequently spiraling costs,” he said.
According to Salem, in the spirit of Ramadan, most supermarkets in the Kingdom are now keeping their profits very low. “All the big superstores and hypermarkets, like the Farm chains, Panda, Carrefour, Lulu, and Geant are absorbing the increase in prices of basic food items in order to help consumers who are now saddled with increasing cost of food products,” he said.
Unfortunately, prices of fruits and vegetable this year have gone up too far, according to supermarket managers. They said not all shoppers are buying the vegetables and the imported fruits this time of the year not only because of the expensive costs but also because they do not have the cash to spend.
To attract more consumers, all superstores and hypermarkets have introduced promotions, like the buy one-take one free offer. Many stores also give away one major item for every one-time shopping that totals SR1,000.
“We will see more people buying about three days before the Eid Al-Fitr holiday, and by that time prices of basic items, like foodstuffs, will have gone down,” Salem said. __


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