July 12, 2011

Saudi's Almarai to reduce cost of milk and laban

Alamarai will reduce the cost of some of its dairy products, in order to comply with new rules set by Saudi Arabia's Ministry of Commerce and Industry to curb price increases made arbitrarily.

Almarai said in a statement on the Saudi's bourse that it will immediately reduce the price of fresh milk and laban.

In compliance with the resolution issued by the ministry, Almarai is keeping the price of its 2-litre fresh milk and laban pack sizes in Saudi Arabia to the level set on July 1, 2011, with immediate effect, the company said.

It said it believed the rationale behind the price increase was "still valid". Saudi authorities had warned dairy companies that they would face penalties for increasing the cost of milk and laban arbitrarily.