Dairy firms urge ministry action as Foot-and-Mouth disease cuts milk supply, raises costs

Amid a recent surge in foot-and-mouth disease cases affecting some local dairy farms, the price of fresh milk has risen sharply — by approximately 40 percent, according to several companies.

These companies have formally requested the intervention of the Ministry of Commerce and Industry to find appropriate solutions to the crisis.

Informed sources told Al-Rai that the Ministry has received reports from companies stating their operating expenses have increased by 30 to 40 percent due to the impact of the outbreak. The disease has led to a decline in local milk produce by 20 to 30 percent, significantly affecting supply, which has negatively affected suppliers’ financial performance, especially considering that fresh milk is also a component of the state’s ration card system.

The companies which contacted the Ministry proposed financial compensation mechanisms to help bridge the gap between rising costs and shrinking revenues. However, Minister of Commerce Khalifa Al-Ajeel has emphasized that any proposed solution must not involve raising the current prices of fresh milk — in whatever manner.

The sources added that Ministry officials are currently holding discussions with key suppliers of fresh milk to assess the changes in their operational costs. The aim is to identify a financial mechanism to address the increased cost margin without resorting to any form of price hikes.