Wednesday, June 20 2018 11:02

ArmInfo. An interdepartmental commission will be set up in Armenia to study the problems of milk purchases. Minister of Agriculture of the Republic of Armenia Artur  Khachatryan stated this at a meeting with the largest milk producers and farmers of the republic.

According to the press service of the Ministry of Agriculture, the  Minister proposed to include one representative from each of the  parties in the future commission. Artur Khachatryan also informed  that a livestock development strategy, aimed at increasing the  profitability of farms engaged in animal husbandry is being  developed. He presented the ongoing and promising programs that are  designed to assist milk producers. In particular, the matter concerns  subsidizing interest rates on loans provided to agriculture, state  assistance in leasing equipment, building irrigation systems in  pastures and improving the condition of pastures, as well as a  program of livestock registry.  During the discussions, the parties  presented their approaches to the current situation on the milk  market, raising the efficiency of animal husbandry and other issues.   To recall, on June 14 dozens of farmers gathered outside the Armenian  government building, protesting against low procurement prices for  milk. If in the winter period prices stood at a level of 180 - 230  drams per liter, today they reached  150-140 drams. In the meantime,  as they told ArmInfo correspondent,  in order to "not sink" and  somehow "stay afloat", the purchase price  for milk today should not  be less than 160 drams. Otherwise, they threatened with the delivery  of milk to Yerevan with cisterns and  free distribution to its  residents as a charity gesture.

According to Martun Poghosyan, a resident of Geghashen village,   Kotayk region of Armenia, in the winter, up to the end of February,   the enterprises bought milk at a price of 200-230 AMD. As early as   May, the price dropped to the level of 150-160 drams per liter and   today it has fallen to the critical for the villagers 110 drams.   Meanwhile, according to him, in the same period of 2017, the purchase   price was 160-180 AMD. "Only one or two enterprises buy milk at a   price of 140 drams. But if the cost price of milk for us, villagers,   taking into account all expenses, is about 120-130 drams, then we   should sell it at least 140-160 AMD, so as not to be in big minus,   "he said.  Meanwhile, as the head of the procurement department of  the  Ashtarak-Kat company, which occupies almost the third of the  dairy market, Hayk Sargsyan stated in a conversation with  ArmInfo, ,  the same situation is observed year after year-in  the winter months  the cost of milk rises and then gradually  decreases. But even with  this in mind, in the winter of this year the  enterprise bought milk  at a price of 180-190 AMD per liter, and not  200, as farmers say. As  explained by Sargsyan, other companies could  have bought at this  price, but those that work with small farms.  Already in May 2018  "Ashtarak-kat" company bought milk from the  manufacturer for 170  AMD, today's price is 150 drams, the day after  tomorrow will reach  140 drams. But there is no need to talk about  price increases. As  the representative of the company assured,  already today there is an  overabundance of milk, and the company  stores it, making cheeses and  processing it into milk powder.

Another large dairy company, LLC Marianna, whose experts  ArmInfo  correspondent contacted for comments, today buys milk for 140 drams,   last year, in the same period the price was lower - 130 drams per   liter. At this stage, as the employee of the company's accounting   department Advine Aristakesyan stated, although there is a surplus of   milk on the market, the company continues to buy milk from farmers so   that they can cover their expenses and financial obligations. The   Producer understands that May-June months are the most critical for  the farmer. Further, as she noted, the prices are gradually adjusted  upwards.  Nevertheless, the Ministry of Agriculture of Armenia  ArmInfo assured that in order to resolve the current situation within  the  next two to three days the issue will be submitted for  discussion to  the departmental collegium, where all interested  parties will be  invited - farmers, procurers and manufacturing  enterprises.

According to the expert estimates, Armenia's self-sufficiency in milk   is 93%, and the average milk consumption is 257.7 kg per person per   year. Small farms dominate the structure of production.