JEDDAH — Local poultry companies have decided to raise chicken prices after an increase in the prices of imported chicken. The companies justified their decision by claiming that the price of fodder has also gone up. Poultry companies have increased the prices despite their promise to keep the price tag till the current fodder stock would end, Al-Eqtisadiya reported, Monday. Mahmoud Fakieh, director of marketing at Fakieh Farms, was quoted by the paper as saying that that the fodder costs 70% of chicken prices. Fodder prices have increased around the world and more increase is in the cards because of the droughts and tornadoes, he added. “Our company won't increase the price until its stock of fodder ends,” he said. If the government provides subsidy on poultry fodder, market prices will remain stable, he noted. “Our farms produce 500,000 chicken a day and a million eggs. We're working according to the five-year plan to increase our capacity to one million chicken a day and three million eggs.” A local poultry company said that it raised the price of chicken by 75 halalas due to fodder price hikes. The report said it was noticed that some workers of poultry stores are taking advantage of the crisis and driving up poultry prices. Nashwa Taher, chairwoman of the board of directors of Radhwa Farms, said the company has kept the poultry prices unchanged despite its loss in the last fire that broke out at its farm. “Radhwa has been the first choice for customers for the last 20 years. When the fire broke out in the farm, we started all over building the farm again. This is costing us a lot of money, more than we paid earlier.” The rise in chicken prices can be attributed to several factors, she added. For example, the increase in prices of imported eggs and fodder can drive up prices. “The natural the fodder is, the more costly it will be. Our company uses 100% natural fodder. That is why prices of chicken differ from one company to another. Add to this, the fodder depends on the type of protein chicken eat. We order corn with good quality and rich in protein. This costs us a lot. Don't forget that we order our corn from the United States and we have to pay more in shipping charges.” — SG
