Anyone aiming to boost their protein intake in the Gulf has likely felt the pinch in their wallet lately. Prices are rising everywhere, driven by a global craze to add protein to everything, but this isn’t converting to profits for Gulf food producers, who are grappling with higher costs because of the war.
Riyadh-based National Agricultural Development Co., best known for its Nadec dairy brand, doubled sales in its protein segment for a second consecutive quarter, helping lift revenue by 7.8% compared to a year ago. But net profit plunged 72.5% year-on-year because of higher feed prices, shipping costs, and surcharges associated with maritime logistics.
Nadec expects the pressure to ease once the “regional operating environment normalizes.” Still, the results show how even businesses with domestic production and strong local demand are struggling with the war’s logistics disruptions.
— Mohammed Sergie