Prices of locally manufactured food products will increase between 30 and 70 percent because the cost of most imported primary material has risen, food factory owners warn. They say imports of raw material are 50-130% higher than last year's prices. The further price rise is inevitable, they say, which will affect up to 5, 000 items that they manufacture. The group of industrialists in Jeddah compares the global price rise of the primary materials to a natural disaster like an earthquake and a volcanic eruption. They say their nominal profit margins are wiped out and fear for those with limited income who will have to bear the burden, in order that the food factories remain in business. The manufacturers say the most important raw materials they use are vegetable oil, powder milk, sesame, butter, beef, glucose and cheese. The price of a ton of German butter has jumped to SR24,000 against SR9,322 last year, The price of other raw material like turkey meat, Caspian mixed nuts and beef have increased by more than 400%. And the flour shortage of late has already caused a 300% jump in prices of many food products. __
