March 29, 2013

Saudi Arabia's powdered milk prices may rise 10%

A 10% price hike for powdered milk commodities' current selling price is predicted by several local traders in Saudi Arabia.

Yusuf Al-Dosari, chairman of the National Commercial Council of Saudi Chambers, said there is an increasing global demand for powdered milk that is expected to rise in the coming months.

On the domestic front, Al-Dosari blamed what he described as complicated procedures facing traders in the industry that have played a role in the price increase.

Al-Dosari predicted an increase in the price of many consumer goods, not merely restricted to milk products, due to numerous internal and external factors. He suggested the problem could be countered through the establishment of a unified purchasing policy for consumer goods.

Al-Dosari said, "There should be a move toward creating a cooperative wholesale body that monitors and adjusts prices for the domestic market in the wake of changing global markets."

"Powdered milk prices are projected to increase by 10% during the next two months due to the impact and volume of the drought that has hit major producing countries, especially New Zealand," said Fadi Aliwa, operations manager at a local food supply chain.