Foodco, ADIC & Cooperatives to ensure cap on foodstuff prices following directives of Abu Dhabi Planning & Economy Department

This was agreed at a meeting recently convened by the Abu Dhabi National Foodstuff Company (Foodco) and attended by senior representatives of the Abu Dhabi Planning and Economy Department, Abu Dhabi Investment Company (ADIC) and Cooperative Societies.

"We are positive that by creating purchasing synergies between the various organisations involved in buying commodities, we will ensure greater stability even when dealing with commodity price fluctuations," said Ahmed bin Ali Khalfan Al Dhahery.

"Purchasing synergies between organisations involved in foodstuff trading will ensure price protection and create a new dimension to long-term planning and thereby eliminate the peaks and troughs associated with short-term price pressures," Mr. Al Dhahery said.

Mr. Al Dhahery noted that purchasing synergies would secure consumer interests and level the playing field. "The dominant players and monopolistic retailers and supermarkets that insist on raising product prices will be made to think again as we will create economies of scale by bundling demands to increase our cumulative buying power."

Members present at the meeting agreed that these new measures would help establish better relationships with suppliers /agents, create efficiency by eliminating duplication, substantially reduce impact of monopolistic supply markets and secure important gains in terms of productivity.

"Pooling negotiating power across business units would help us gain a competitive edge over suppliers and agents who are responsible for hiking up prices," Mr. Al Dhahery concluded.

Foodco is a public shareholding entity that operates under the patronage of His Highness Sheikh Khalifa Bin Zayed Al Nahyan, the President of the UAE. The company is head quartered in Abu Dhabi with branches in Dubai and Al Ain.

Prominent among Foodco's portfolio of brands include Virginia, Shehrazade, Mubarak Basmati Rice, Hafeet Spring Water, Quick Tea, Karkade Cordial Drink, F Tissues, Al Safwa Powder Milk, Danchi Chicken, Master Food and Master Chef range of food products.