Kuwait's FMD Outbreak Cuts Milk Output, Prices Soar
A recent outbreak of foot-and-mouth disease (FMD) has severely impacted Kuwait's dairy sector, leading to a significant reduction in milk production and a sharp increase in prices. The disease has affected numerous local dairy farms, causing fresh milk prices to surge by nearly 40%. Dairy companies have reported operational cost increases of 30% to 40% and a decline in milk production estimated between 20% to 30%. This supply-demand imbalance is also affecting milk distributed through the government's ration card system.
In response, dairy companies have approached the Ministry of Commerce and Industry, seeking immediate intervention to mitigate the sector's challenges. They have proposed financial compensation to offset losses incurred due to rising production costs and falling sales margins. However, Minister of Commerce Khalifa Al-Ajeel has emphasized that any measures to address the issue must not involve increasing the retail price of fresh milk, either in the market or through government supply channels. He noted that the current crisis is temporary and does not warrant a permanent adjustment in consumer pricing. Officials from the Ministry are reportedly in ongoing discussions with major milk suppliers to assess the financial impact of the disease outbreak. The goal is to develop a fiscal solution that relieves pressure on suppliers without burdening consumers with higher prices.
Industry Insight:
The FMD outbreak in Kuwait underscores the vulnerability of the dairy industry to animal health crises. It highlights the need for robust disease prevention measures, contingency planning, and government support to maintain supply chain stability and protect both producers and consumers from economic shocks.
Source : DAirynews7x7 May 15th 2025 Arab times