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Tuesday, 24 November 2009 05:00 UAE time

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A Coral Hotels and Resorts dessert.

High ingredient costs have become ‘the norm' in the Middle East, as numerous food stuffs unavailable in the region have to be air-freighted in; but is it worth paying through the nose for such products, or is there a compromise to be found? Lucy Taylor finds out.

For a long time now, there have been rumblings from the Middle East's F&B community about high ingredient prices in the region. But is this down to imports, suppliers or fluctuating exchange rates - and is there any way to avoid paying through the nose?

The limited availability of various ingredients on the local market plays a major role in sustaining high food costs. As Coral Hotels and Resorts corporate executive chef Michel Miraton points out: "Here you have to import 70% of your ingredients."

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Joerg Wickihalder, general manager for the Il Villagio Restaurants and Lounges complex in Jeddah, Saudi Arabia, adds: "Certainly food costs for high quality products, imported from Europe in our case, can lead to higher expenses due to the freight costs and custom dues. But then we can only comment on operating in Saudi Arabia, where procedures are somewhat different to other Middle East countries."

Shangri-la Qaryat Al-Beri's new executive chef Gary Robinson points out: "If you look at the food globally, you've got great food trends going on, like the back-to-basics approach of sourcing ingredients from farmers' markets that you see a lot in Europe. Here that doesn't happen.

"Then again, how much you spend depends on how much you order in and how sustainable your supply chain management is," he reasons.

Holiday Inn Dubai - Al Barsha executive sous chef Sameh Youssef believes it is down to the individual outlet to adapt to high prices.

"It's not a major problem for the Middle East; food prices have risen everywhere," he claims.

"But we do try to be very controlled with our food expenses. I make sure I have balanced offerings on my menus."

But chefs are the first to admit that there are some products they would like to serve that are simply too expensive or difficult to obtain in the Middle East.

Shangri-La's Robinson adds that when it comes to importing foodstuffs, high prices do not necessarily guarantee you'll receive a top-quality product.

"The main limitations are customs blocking shipments or flights being delayed," he asserted.

"Everything coming in obviously has to go through customs clearance and because of the temperature and distance travelled, often the beautiful fresh fish I have imported from Scotland has to sit in customs for ages and will then spoil. So that can be frustrating," he admits.

Meet the supplier

Five minutes with... Baqer Mohebi Est. general manager S H Siadat

What products do you supply to the Middle East F&B industry?

We distribute products in the UAE, Oman and Qatar, such as: raw material and ingredients for the bakery, pastry and confectionery industries and F&B items such as teas, coffees, condiments, olive oil, mineral water and biscuits, as well as hygiene and protective wares.

Have suppliers in this region overcharged clients for the past few years?

There are many players in this region offering a wide range of commodities and competing rigorously - naturally this keeps prices reasonably competitive, so overcharging is practically impossible.

How has the economic downturn affected your prices?

No one has been exempt from the recent downturn; it has forced everyone to reduce prices to remain competitive, some with the help of principal manufacturers and some independently.

We have lowered a good portion of our selling prices and are operating at lower margins in order to maintain our market share.

What's your top promotion this summer?

We have a number of special deals planned. A few have already begun, including great offers for the HORECA industry on bread and cake mixes, creams and margarines.


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