SAUDI ARABIA

Illegal expats monopolize fodder market in Jeddah

Saudis forced out by price manipulation

January 16, 2018

Saudi Gazette report

JEDDAH
— Monopoly, price manipulation and control by illegal expatriates are some of the serious challenges facing the Jeddah fodder market, Al-Madina newspaper reported on Tuesday quoting market sources.

The sources said the situation in the market worsened due to the absence of close supervision by the Ministry of Commerce and Investment and the municipality.

They said the Saudis were driven out of the market by illegal expatriates, who control the selling points and manipulate prices.

The sources said the volume of the fodder market is 15 million tons with annual investments amounting to more than SR11 billion.

According to the sources, the market is replete with swindling operations and irregular work, which necessitated close monitoring by the concerned authorities.

They said the price of the fodder ranges from SR14 to SR23 per bundle of berseem (clover) grass. A truckload with 18,000 bundles is sold for between SR11,000 and SR18,000.

"Many Saudis have left the market because of the chaos and the price manipulation," said Faleh Al-Sharif, a young Saudi who despite holding a master's degree works in the market.

"Young Saudi traders in the fodder market are annoyed by the big investors who prefer to deal with expatriates rather than citizens," he said.

Ali Safar Al-Ghamdi, a Saudi investor, said a number of people who buy and sell in the market do not have licenses and do not have regular workers.

"The grip has been tightened against the Saudi investors through monopoly and price manipulation," he said.

Mubarak Al-Maghrabi, a Saudi businessman, said the market needs regulation and institutions to nationalize jobs.

"We do not mind expatriates working in the market according to the rules and regulations," he said, adding that investment in the market is very feasible.

Saud Al-Hafta, a cattle breeder, said the prices of the berseem grass must be regulated, especially because it is the main animal fodder after barley.

He accused the expatriate workers of hoarding until the prices rise.

The Ministry of Commerce and Investment said it was making regular inspection tours to the market, the last of which was in the previous week.

The municipality, however, is still silent on the issue.


January 16, 2018
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