A large hike in the prices of dairy products and juice has angered many in the United Arab Emirates. Consumer unions in Abu Dhabi and Dubai have stopped retailing dairy products in protest against the recent price hike, up to 10%.
The increase was ordered by the UAE Juice and Dairy Producers Group, and immediately condemned by the government, which promises to address the issue. It is the second increase in 12 months, which opponents decry as arbitrary and inflationary.
Local producers claim the rise in price is due to increased costs in imported materials involved in packaging products, adding that the price of plastic and feed has soared by 18% and 20% respectively, exacerbated by an increase in oil surcharges. They add that lower priced-products in the UAE are primarily from foreign producers, especially Saudi Arabia and Oman, where costs are substantially lower.