SAUDI ARABIA

Cafeterias feel the pinch as egg prices skyrocket

September 16, 2018

Irfan Mohammed

Saudi Gazette

JEDDAH —
The increase in egg price is not going well with the cafeterias as it is impacting the cost of the most popular breakfast for Saudis and expatriates.

Egg is a principal ingredient in many food items in Saudi Arabia. Many people start off the day with an egg sandwich. It is also used in other food items such as bread with omelet known as Fatera Baiz and Mutabbaq, a flat bread stuffed with egg.

The cafeterias are feeling the pinch of the price hike. At present the cafeterias bear the increased cost with the belief that prices would stabilize after the Haj season. However, there is no respite in immediate sight. The eateries are in a dilemma as they cannot continue to bear losses and it is neither easy to pass on the rising costs to customers. Many of them fear that a price hike may result in a further dip in the already shrinking sales.

A large-size egg crate that used to sell for SR12 now costs SR18 in retail market as suppliers have increased the prices by nearly 70 percent.

During summer egg prices drop routinely as demand falls due to closure of schools and, also excessive production as result of the cycling period of hatching. In winter the prices rise as result of low level hatching that slows down production.

However, this year prices were stable in winter but surprisingly surged in summer.

Traders attribute several reasons for the hike.

The wholesale egg supply chain is dominated by expatriates, especially from the Indian state of Kerala. Some farms clandestinely operated by expatriates in remote areas have been closing down. As result, the supply of Baladi eggs almost came to nill.

The increase in production costs due to the labor fee, hike in feed prices, energy charges and enforcement of environment rules were other reasons impacting the cost of egg production, according to trade sources.

The Kingdom is the largest producer of poultry and egg in the Middle East and self-sufficient in egg production. It also exports eggs to neighboring countries. The farms in Qassim and Riyadh regions fulfill the most of egg demand in the Kingdom.


September 16, 2018
6381 views
HIGHLIGHTS
SAUDI ARABIA
8 hours ago

Saudi Arabia chosen to chair UN Committee on the Status of Women in 2025

SAUDI ARABIA
10 hours ago

Car agents directed to receive only a portion of price as deposit while booking cars

SAUDI ARABIA
11 hours ago

Punitive measures against more firms for organizing illegal lottery prize draws