A recent increase in the price of dairy products supplied by a popular Saudi company has caused outrage amongst Bahraini consumers.
Saudi multinational company Almarai has defended its January 1 move saying the increased costs were a result of global issues out of its control.
Shoppers were not convinced or pacified, however. “This increase in prices across several product categories is really upsetting and overwhelming,” said furious Bahraini Abdulhussain Mohammed, one of many to complain. “Milk and yoghurt are basic commodities.”
One Bahraini housewife said that she was shocked to see that six cartons of Almarai yoghurt cost 900fils, almost double the price of local equivalents.
She added that her family snapped up a package of Made in Bahrain Awal Al Fakher Yogurt – costing 500 fils for the same number.
In a response to customer outrage on its official Twitter account, Almarai said that prices have been raised due to a recent increase in the cost of production and took into account higher feed prices and shipping costs.
According to its statement, this has led to adjustments in prices of a few dairy products as ‘imperative to cover part of the costs of these increases’.
The price of a 170g carton of yoghurt increased from 150fils to 200fils, as well as 180ml of fresh milk costing 195fils as opposed to 150fils for 180ml of Nada fresh milk, and 150fils for 200ml of Nadec fresh milk.
Other consumers found fresh cream increased from 350fils to 400fils too.
The ramping up of food prices from across the causeway has raised more than a few eyebrows over the years.
The GDN previously reported in December 2021 that Saudi companies had raised milk, laban and yoghurt prices following a government decision to reduce subsidies.
Bahraini companies have stepped in and started ramping up production to meet local demand and have so far refused to cash in on the global crisis, although only time will tell how long they can keep prices lower.
Ebrahim Zainal, Awal Dairy chairman, a subsidiary of Trafco Group, acknowledged the global challenges. “Our prices are still fixed, but we are really under global market pressure – the rise in the price of raw materials as well as packing materials,” Mr Zainal told the GDN yesterday.
“We may have to increase our prices, but we will definitely keep our prices lower by a large margin than others,” he promised. “We can’t forget that the production capacity of Awal is limited and we won’t make claims that we can cover the entire Bahraini market.”
According to Mr Zainal, increased prices have been witnessed around the world with many countries suffering from high inflation.
He added that with Bahrain depending on imports, the impact of fluctuations in global markets are bound to cause ripples across the country.
“All raw materials and packaging prices rose as a result of factors impacting the market such as the pandemic, the Ukrainian conflict and an increase in shipping costs,” he added.
reem@gdnmedia.bh
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