Marketing trends and future challenges: A review of dairy industry in Saudi Arabia
2014
Sadi, Muhammad A
This paper reviews the challenges facing the Saudi Arabian dairy industry dominated by a few companies engaged in aggressive price war strategies. The key players and the main drivers for milk production and consumption are discussed in detail. The latest developments in the ‘Saudisation’ policy and ‘Nitaqat’ scheme have also affected the quality of the labour force in the industry. The paper concludes that although the future prospects are promising, smaller milk‐producing companies might not survive unless they adopt alternate strategies. The latest push for job replacement with the domestic labour will also create difficulties for dairy firms to produce high quality products at a sustaining labour cost.
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