By Claire Ferris-Lay
Diary producer to cut costs with immediate effect following warning from Saudi’s ministry of commerce and industry
The region’s largest diary producer has said it will reduce the cost of some of its dairy products in order to comply with new rules introduced 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 of Commerce and Industry, Almarai is taking the price of its 2 litre fresh milk and laban pack sizes in the kingdom of Saudi Arabia to the level that prevailed on July 1, 2011 with immediate effect,” the company said.
Almarai said it believe the rationale behind the price increase was “still valid”.
Saudi authorities warned dairy companies on Sunday that they would face penalties for increasing the cost of milk and laban arbitrarily.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.