Bankruptcy of framers might cause the bankruptcy of milk companies, Hrachya Berberyan, the chairman of Agrarian-farmer Union of Armenia, told the media on June 2. He reminded that one of the companies had recently decreased the purchase value of milk by 10 AMD.
"Boost of milk production causes falling prices in summer, but not to this extent. A statesman has blamed the elder, but this is nonsense. None of the elders have anything to do with pricing. Trying to make them scapegoats makes no sense. This is probably caused by the international fall in powder milk prices - using this product is more favourable. I am not talking about banning import of powder milk to Armenia. Here in shops milk labels often read "unskimmed milk", but the truth is it is made of powder milk. There are rare companies that mention the percentage. Who checks? This issue is to be dealt with. Powder-made milk should cost 100 AMD instead of 400. Who are they cheating? At this rate the situation will be precarious", said Berberyan.
He urged milk companies to be precautious so they are not surprised to see Russian and Belorussian milk products sold in Armenia in autumn. He believes Armenian companies will fail to meet the competition - this will lead to their shutdown. According to him, most believe that the EEU is a one-sided channel for exporting only. However, EEU member-states can export their products to Armenia and they will jump at this opportunity.
H. Berberyan informed that on behalf of farmers Agrarian-farmer Union of Armenia had turned to State Committee for Protection of Economic Competition of the Republic of Armenia on June 1. Pricing does not result in competition. All purchasers offer the same price. Berberyan hopes culprits will receive relevant punishment in case the Committee identifies artificial tendencies. "In a word, they will pay to the government if they are reluctant to pay to farmers", said Berberyan adding that the only solution to this problem would be the adoption of law on "Agricultural Producers".