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Saudi Almarai Co. hiked the selling prices of its products last July to absorb rising costs from halting production of Alfalfa and green fodder inside the Kingdom, chief executive officer Georges P. Schorderet told Argaam in an exclusive interview.
“Though the decision to halt cultivation of Alfalfa maintains sustainability of water resources, it will impact dairy producers as they willfully import their needs of green fodder. Therefore, Almarai raised its selling prices,” Schorderet said.
In the short-term, consumers are unlikely to be impacted by higher costs, but market conditions could change going forward.
Schorderet added that the dairy and juice producer is not eying any huge acquisitions in 2019.
Almarai’s market share is based on products. The company has a high market share in the dairy segment, when compared to other production lines due to fierce competition, he concluded.
In December 2015, the Saudi agriculture ministry issued a three year green fodder phase-out plan to end local production by 2019, Argaam reported.
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