Minister of Economy comments on declined milk prices in Armenia

YEREVAN, May 24. /ARKA/. Armenian Economy Minister Vahan Kerobyan commented today on the concerns of Armenian farmers over declining milk prices.

According to the minister, this time two years ago the price of milk was about the same as it is now - about 130 drams per 1 liter. The minister said that after last year's high inflationary pressure it was possible to return to 'normal, standard' prices.

"There is a problem, but not in all of Armenia, but in 1-2 areas, where major purchasers were the companies which also exported part of their output. Today, because of the ban on exports of dairy products to the Russian Federation, we have a surplus of milk," he said.

Russian agricultural watchdog Rosselkhoznadzor asked Armenian companies to suspend export of dairy products to Russia from April 5, 2023. The formal reason for the ban is the use of Iranian milk (banned in Russia) by Armenian dairy companies. It also cited lack of “proper oversight” by relevant Armenian authorities due to which low-quality and unsafe products could be exported to Russia.

Kerobyan said today that that ministry teams were working to solve this problem. "When we talk about the price of milk, we have to keep in mind that milk is produced in different conditions: on high-class farms, in 'smart' sheds or by traditional methods," he said.

Kerobyan pointed out that there is no problem of milk cost for farms with high productivity, which use modern technology. However, companies engaged in exports do have problems. He said efforts are underway today to have the Russian market reopened for Armenian dairy products as soon as possible.

Earlier, Kerobyan said that last year Armenia exported $18 million worth of dairy products to the EEU market, which is less than 1% of the country's total exports. -0--

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