https://arab.news/rt9hd
RIYADH: Saudi poultry processing company Tanmia Food’s profits have plunged during the first quarter of 2022, to reach SR1.54 million ($410,000), Alarabiya reported, citing Ahmed Asilan, managing director of the firm.
This comes as a result of a 23.4 percent increase in sales costs, impacted by soaring raw material prices, Asilan revealed.
Even though the rise in raw material prices started before the political tensions between Russia and Ukraine escalated, the war between both countries further exacerbated the situation.
Both countries are among the largest exporters of raw materials required in the production of poultry, such as corn and soy, according to Asilan.
“The rise in prices continues and is expected to continue in the coming period, but the company has taken various measures to address the problem,” Alarabiya reported, citing Asilan.
Such measures include gradually increasing prices, as well as increasing storage capacity from three to six months, the managing director disclosed.
In addition, saving on the feed mix provided to poultry is expected to reduce the impact of high prices and gradually bring net profit back to its normal path, Asilan stressed.