MADINA: The global price of chicken has risen to $2,425 a ton this May, the highest level in several years. This is a $225 increase since January this year. Compared to May 2010, the price has now risen by $775. The price increase has come as a result of rising global demand for bird and chicken feed. This additional cost has now been passed on to the consumers. The price of a carton of 10 chickens weighing a total of 100 kg is now SR100, which comes to SR10 per chicken. This price is paid by importers who then sell to the local market. Retailers will add at least SR2 per chicken, bringing the price to SR12. At the point of sale, prices will differ, depending on what was paid to retailers. According to forecasts by retail traders, those regions far from import points will see a 30 percent price increase compared to regions that are closer. This is due to a number of factors, including cost of transportation, shipping, storage and cooling. All this will affect the price per chicken, which according to preliminary estimates will reach SR14. It is expected that restaurants selling “broasted” chicken will see the price at SR13, depending on whether action is taken to increase imports. According to informed sources, importers have announced they will only make a profit of SR0.25 per chicken, which would be enough to maintain price stability. They said they can compensate by selling larger quantities, but will not raise prices to make additional profit. In this regard, many businessmen are seeking to purchase directly from importers without middlemen or retail traders. This would keep prices reasonable for consumers until global prices drop again.
