Expert says the government should support Ashtarak-Kat dairy plant
29.11.2016,
18:23
Inefficient management, the growing number of small competitors, high electricity and gas prices are some of the reasons prompting Ashtarak -Kat (Ashtarak Milk), one of the largest dairy companies of Armenia, to stop activity, Gagik Makaryan, the chairman of the National Union of Employers of Armenia told a news conference today.
YEREVAN, November 29. /ARKA/. Inefficient management, the growing number of small competitors, high electricity and gas prices are some of the reasons prompting Ashtarak -Kat (Ashtarak Milk), one of the largest dairy companies of Armenia, to stop activity, Gagik Makaryan, the chairman of the National Union of Employers of Armenia told a news conference today. According to him, this may have a negative impact on other dairies.
Ashtarak -Kat announced termination of activities 10 days ago citing dire financial conditions and huge debts, owned to milk producing farmers.
According to Makaryan, the current situation stems from the dwindling solvency of the population and the specificity of dairy products consumption. "Not everyone consumes dairy products on a daily basis. They are mostly families with children or aged people," - he said.
According to him, reduced consumption of dairy products has contributed to the deterioration of the economic situation, which led to an increase in poverty and unemployment. This is why, the government should move to show support to Ashtarak -Kat, which can be done either via subsidies. tax breaks or tax payment postponement.
Ashtarak-Kat was founded in 1995 on the basis of a cheese plant in the village of Agarak in central Aragatsotn region of Armenia. It has about 500 employees, produces about 45 kinds of ice cream, 50 kinds of dairy products, as well as jams and marmalades. The company cooperated with about 6,000 farmers.-0--
Ashtarak -Kat announced termination of activities 10 days ago citing dire financial conditions and huge debts, owned to milk producing farmers.
According to Makaryan, the current situation stems from the dwindling solvency of the population and the specificity of dairy products consumption. "Not everyone consumes dairy products on a daily basis. They are mostly families with children or aged people," - he said.
According to him, reduced consumption of dairy products has contributed to the deterioration of the economic situation, which led to an increase in poverty and unemployment. This is why, the government should move to show support to Ashtarak -Kat, which can be done either via subsidies. tax breaks or tax payment postponement.
Ashtarak-Kat was founded in 1995 on the basis of a cheese plant in the village of Agarak in central Aragatsotn region of Armenia. It has about 500 employees, produces about 45 kinds of ice cream, 50 kinds of dairy products, as well as jams and marmalades. The company cooperated with about 6,000 farmers.-0--
