Bahrain Danish Dairies (BDD) has revealed that it will have to close down unless it receives aid from the country’s government.

BDD is Bahrain’s oldest and largest dairy, established in 1964 and currently employing 260 people. Since 1995 however, the company has consistently posted losses and can no longer afford to run in such difficult trading conditions.

BD’s CEO Abdullah al-Mulla explained that the company faces strong competition from Saudi-based dairy companies. These operate with large subsidies from the Saudi government, enabling them to control prices and pay for expensive advertising campaigns.