Dairy company set to raise output

A DAIRY company based in Bahrain is set to ramp up production to meet local demand after reports that the price of Saudi milk, laban and yoghurt had gone up from yesterday.

The GDN reported on Tuesday that the Saudi Cabinet had decided to scrap 50 per cent subsidies on dairy companies in the kingdom leading to an increase in the price of their products.

Awal Dairy, one of the oldest in the region, assured consumers yesterday that the prices of all its dairy products will remain the same at all points of sale in Bahrain.

“The price of all our products has remained the same and we are monitoring the market with the latest price hike development,” Trafco Group chairman Ebrahim Zainal told the GDN.

Awal Dairy, set up in 1963, is a subsidiary of the Trafco Group.

“We have the production capacity to meet the demands of the local market.”

Mr Zainal said it was up to the consumers to select the best product that fits their budget.

“Consumers have to decide to be smart, but like I have said, we at Awal Dairy, have not increased our prices.

“We hope that the consumers will see the difference in our products and gradually shift.”

Mr Zainal added that the company was currently also exporting to Saudi Arabia and Kuwait.

Meanwhile, Bahrainis yesterday rallied around in support of local dairy companies, besides other local firms.

The campaign, #Let_it_Rot, went viral on Twitter yesterday with many Bahrainis denouncing the increased prices of Saudi products, such as 150fils per 100ml of laban and yoghurt as opposed to 100fils.

“It might be just a 50fils increase but this differs from household to household especially due to the pandemic and many people have lost their jobs and projects,” said one Twitter user.

Market owners told the GDN that they will be forced to increase the prices in order to keep up with their costs and profit margin, adding that this was an external decision forced onto the Bahraini market.

“Those who say it is just 50fils or 100fils aren’t in touch with the reality of people who are on strict budgets due to low incomes,” said a Bahraini mother-of-four on condition of anonymity.

“Awal Dairy has been given a historical opportunity to establish itself in the market as a strong local company capable of covering the local market’s demand.

“We should come together as a community and simply support our local products and companies because that way we can create a self-sufficient economy that doesn’t heavily depend on imports.”

Similar sentiments were shared by a Bahraini coffee shop owner who said the increase in prices will affect coffee shops and restaurants that purchase dairy products in large quantities.

“This may force some owners to increase the prices of food and beverages because their costs have now increased due to the Saudi decision,” he said, on condition of anonymity.

“It will also lead to many switching to local dairy products in order to maintain the same prices that our customers are used to.”

The price of the Saudi dairy items has been revised on a popular food delivery application widely used in Bahrain to 650fils for a litre of milk as opposed to the old price of 500fils.

Bahrain Chamber of Commerce and Industry resources and food committee chairman Khalid Al Ameen had stated previously that the price rise followed a 100pc increase in the cost of shipment, logistics and petrol.

He also added that there was around a 130pc increase in the cost of raw materials coming from China.

 

Source: https://www.gdnonline.com/Details/965667/Dairy-company-set-to-raise-output

 

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