Milk processing firms cut price they pay for milk but raise products’ prices in markets

Milk processing firms, which buy milk from farmers and sell it onto customers including supermarkets and food production companies, have raised the price for their products in case when the price they pay to farmers for milk has reduced.

The firms have started paying farmers ten drams less while the milk prices in markets have gone up by 20-30 AMD.

Speaking to Tert.am, resident of Tchambarak town Vagharshak Sargsyan said Tamara company buys milk from farmers with ten drams less than before. “Till June Tamara was buying milk by 160 drams while from June 1 it pays 150 drams for 1 liter,” Vagharshak Sargsyan said, adding that no explanation is given over the raise of prices.

Tamara company’s director Khachatur Poghosyan refused to answer why they are buying milk from farmers at lower prices. “I am not explaining onthe phone,” the director said.

Ashot Hovanissian, head of Breeding and Veterinary Department at the Ministry of Agriculture told Tert.am that such regularities take place every year.

“The prices for milk depend on the season, on the volume of milk production. The more the volume rises, the more the purchasing prices fall. This year the prices remained high till June. Last year it in June it was 130-140 drams, while this year it remained 160-170,” he said, adding that it is quite available price for farmers.

“150-160 AMD is a convenient price for farmers as a certain level of profit is being maintained. So, by the end of June the prices may go down by 10 drams,” he said, speaking about other companies.

Asked how the Ministry explains the rise of milk prices by milk processing firms, Hovannisian said, “You are right, they have raised it, but the reduction by 10 drams must be followed by recalculation of the self cost,” he said.

Asked whether the Ministry demands explanation from the firms, he said that the Ministry cannot have influence on the companies. “We are just making proposals based on analyses,” he said.

Gayane Sahakyan, spokesperson for the State Commission for the Protection of Economic Competition, told Tert.am that it is not the Commission’s affair with what prices the companies purchase milk.

As to the growth of prices for dairy products, Gayane Sahakyan said that the Commission has registered growth till 30 drams which has been grounded by the raise of milk purchase price.

“We have received the information both from the ministry and firms. The commission is currently studying the issue,” she said.

In response to the claim that the Ministry confirms that the milk purchasing prices have gone down, she said, “May be we do not have the information. Our studies relate to the raise of prices registered 20 days ago.”