September 1, 2011

Armenia's Ashtarak Kat dairy prices hike

The increase in procurement prices has resulted in the rise of Ashtarak Kat's dairy prices.

Ashtarak Kat closely cooperates with over 6,000 farmers. This year the company purchases milk from these farmers at prices, which are by 35% higher than in 2010. The packing materials and fuel have risen in price by 10-50%.

Under these conditions the prime cost growth has not been reflected on the company's dairy prices for a long time. The prices have remained the same at the expense of profitability reduction and sometimes at the expense of losses.

In this regard, Ashtarak Kat had to raise the sale prices stage by stage. Meanwhile, the dairy prices are not commensurable with the prime cost growth even today.

Journalists raised this with Director of Agricultural Projects Bureau of the Armenian Agriculture Ministry Gagik Khachatryan.