Fresh juice producers in UAE hike prices by 10pc

DUBAI - Fresh juice producers in the UAE, who joined the UAE Dairy Association last year, hiked prices for their products by at least 10 per cent and fixed them at that level.

By Jamila Qadir

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Tue 6 Apr 2004, 1:58 PM

Last updated: Tue 10 Jan 2023, 8:49 AM

As it was the earlier cases with fresh milk and yoghurt, there will be no promotions for fresh juices. Effective from this year, the association also added to its membership the recombined producers, who produce long-life juices and milk, bringing the total number of its members to 45.

According to the association's statutes, the fresh juice and long-life juice and milk producers in the UAE are not allowed to sell their produce below the fixed price and any new companies entering the UAE market must comply with the promotion and pricing policy of the agreement. Industry sources told this correspondent that the association lead by Al Rawabi put pressure on the fresh juice and long-life juice and milk producers in the country to sign the new agreement and fix the prices, adding that the cartelisation led to the fact that consumers are not getting good prices like they used before.

Though fixing prices did not affect sales directly, but the whole market is not going up, they explained. "Every year we used to record at least 10 per cent growth in our sales. But because of the agreement we are not able to do it any more," one fresh juice producer pointed out.

Some argued that increasing the price for fresh juices was forcing smaller players to quit the market, while some were against the fixing price and ending promotions for their products. "We try hard to reduce the price with the retailer to give better bargain to the consumer, but the new agreement wants us to make the consumer pay and benefit the retailer," one fresh juices producer said.

Al Rawabi Dairy Company, whose fresh juices enjoy a strong market share in the UAE and are exported to different Gulf countries, including Qatar, Oman and Bahrain, was the most interested party in this agreement, an official from a local dairy farm, which also produces fresh juices, said.

Last year Al Rawabi inaugurated its Dh50 million juice processing plant in Dubai.

The new faility, with the production capacity of up to 240 tonnes of fresh juice in three shifts per day is considered the biggest of its kind in the Middle East region.

More news from Business