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Consumer revenge: Demand for chicken drops sharply
Published in The Saudi Gazette on 07 - 10 - 2012


Saudi Gazette report
RIYADH — Retail outlets in Riyadh have reported substantial drops in chicken sales following the recent price increase.
Market sources estimate the drop in sales at 30 percent, which stopped many shop owners from replenishing their stocks.
Restaurants that serve chicken dishes have also suffered from a significant decline in daily sales, which reached 25 percent in some cases.
Amer Ali Ahmed, sales manager at a reputable chicken distribution outlet, said the volume of sales of chilled chicken fell by more than 30 percent.
He said most consumers were boycotting chicken after producers increased their prices. Since last week he has not sold more than six cases of chilled chicken.
Ahmed said the market went through a similar experience a few years ago when the prices shot up.
He said the 800-gram chicken sold at SR12 is in demand currently.
The owner of a restaurant chain in Riyadh said the sales of chicken kabsa dropped by at least 10 percent. He said sales hit rock bottom last Saturday and Sunday, which were the lowest in 10 years.
He said the drastic drop in sales would force restaurant owners to maintain the prices of meals despite the increased costs due to the rise in chicken prices.
The consumers had launched a campaign on social media to boycott chicken to protest the sudden price hike.
The campaign started on Twitter and Facebook then spread to other social media channels such as WhatsApp and Blackberry messenger calling on people to stop buying chicken for one week.
The consumers have also asked the Ministry of Commerce and Industry to intervene to rein in “greedy traders”.
According to the campaign, titled “Let it rot”, prices have increased by 50 percent. One of the campaign's slogans is “one hand to fight corruption and high prices”.
Minister of Agriculture Fahd Balghunaim said recently that the price rise was irreversible as there was a huge shortfall in the production of chicken, which currently meets only 45 percent of local demand.


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