Boycott of Danish goods benefits Saudi dairies

Riyadh: Saudi dairy companies have announced that they are prepared to meet shortages resulting from the boycott of Danish products.

Most companies decided to raise production to meet the increasing demand for their products following the boycott of Danish products over the publication of cartoons depicting the Prophet Mohammad (PBUH).

Abdul Aziz Al Babateen, director-general of Nadec, said Saudi companies were able to meet the increasing demand for all dairy products.

"The companies will raise the volume of production in the coming few weeks. There was a trem-endous increase in demand for our products in the market. Saudi products are characterised by top quality and competitive price," he said, adding that most Saudi dairy products were made of fresh milk.

Al Babateen said Nadec had decided to introduce new products in view of the changed circumstances.

"We will start production of these items in the near future. We will not exploit the new situation to raise prices," he said. "Prices will remain the same as in the past."

He believes that the Saudi market is one of the best consumer markets in the world as far as dairy products are concerned.

Abdul Rahman Al Mohna, managing director of Al Marai, a leading dairy company, said the company has invested a huge amount of money on its new factory to increase production in a considerable way.

"We are able to meet the increasing requirements for various dairy products in the changed scenario by raising volume of production and introducing new products. The company is used to introducing two or more new products annually," he said.

Al Mohna said demand for Al Marai's products had increased sharply in the past few weeks, particularly after the campaign against Danish products intensified.

"Saudi dairy products can compete with any product of international companies being marketed within the kingdom or outside in terms of quality and standard," he said.

Saudi Arabia consumes 892 million litres of milk, flavoured milk, laban and yoghurt annually. Annual per capita consumption is 36 litres of liquid diary products, up from 32 litres in 2000.