Company guilty of rise in prices for cheese in Armenia to go unpunished

PanARMENIAN.Net - The State Commission for the Protection of Economic Competition (SCPEC) studied the cheese market in Armenia and concluded that Ashtarak Kat company was the first to increase its price for cheese, while other market participants followed it.

Presenting the results of the study, Chairman of the SCPEC Artak Shaboyan reported that 78 enterprises currently deal with cheese production in Armenia. The monitoring was conducted at 16 enterprises. Ashtarak Kat (32.8%), Dustr Melania (6.1%), Arax 2 (Eco Kat – 5.3%) are the largest representatives of the market.

Price for Lori cheese made AMD 1400/ 1kg in the beginning of September, amounting to AMD 2140/1kg by the end of the month and AMD 2890/1kg in the beginning of November. However, currently it makes AMD 2490/1 kg.

According to Shaboyan, cheese producers explain the increase in prices for the product by growth in prices for milk.

“According to our studies, prices for milk increased from AMD 100-120/1 liter to AMD 120-160/1 liter, what is reasoned by bad weather conditions in 2010 and cut in the number of cattle in the country,” he said.

Thus, the SCPEC found out that prices for cheese should have increased by AMD 415 on an average, as a result of growth in prices for milk. But they have increased by AMD 810.

Shaboyan added that, under the current legislation, Ashtarak Kat is not a monopolist, but has a prevailing share in the market and great impact on it.

“Companies will be punished in such cases, if amendments to legislation offered by us are adopted,” concluded Shaboyan.