ArmInfo.The inaction of the supervisory government agency on the speculative and dumping policy of unscrupulous economic entities in 2019-2020 resulted on the eve of Easter 2021 with a sharp deficit and an unprecedented rise in the price of eggs.
This was stated in the statement of the Araks poultry farm, published on the official Facebook page of the company, regarding the situation in the egg market. "Araks poultry farm, being a leading company in the production of poultry meat and eggs, is very concerned about the situation of a sharp rise in the price of eggs in recent years and especially in the days preceding Easter. We believe that the reasons for all this are not new, they originate from November 2019, when prices began to decrease in the egg market due to stagnation and an overabundance of production.
As a result, by the end of 2019 and January-February 2020, market prices for eggs dropped to 19 drams per 1 piece. As a result, some economic entities were ousted from the market, and producers had to cut the volumes of production in order to reduce losses.
Considering the saturation of the local market, Araks took steps to export eggs, in particular, in March-April and June-July 2020, 3.9 million eggs were exported, at a much lower price than the company sold them during this period on the domestic market, "the company said in a statement.
With regards to the recent increase in egg prices, P / F Araks considers it necessary to outline a number of circumstances that caused this situation: "First, the rise in the price of feed - more than 26% compared to 2019-2020. The dollar exchange rate also had a significant impact, which in comparison with 2020 increased by more than 10%, increasing the cost of servicing foreign currency loans of poultry farms. "
At the same time, Araks declares with regards to publications and reports about a sharp increase in egg prices in the last days preceding Easter, that on its part no changes in the selling prices for eggs were carried out. "Possible reasons for such phenomena could be a shortage of eggs, since in 2019-2020 there was an oversupply of egg production, market stagnation, which is why many farms were forced to go for forced slaughter of poultry and change production cycles. Well, a decrease in the number of poultry layers led to a reduction in production volumes. We also do not exclude that some unscrupulous economic entities, trying to extract super-profit from the current situation, increased prices for their products, "the statement says.
Taking into account the above circumstances, P / F Araks wishes to receive answers from the relevant government agencies to the following questions: "First, some unscrupulous producers carried out a dumping policy on the market, reduced prices, and competent government agencies had to find out which companies initiated this. Meanwhile, in February 2020, production was initiated, and after 11 months only a decision was made on a fine in respect of 7 poultry farms, which did not answer the question of who was the initiator of the dumping and was responsible for the whole process. Second-when Araks clearly realizing that a decrease in production volumes will lead to a deficit and by Easter there will be problems in the egg market, applied to the relevant government agencies for permission to import eggs, some poultry farms opposed this, saying that there are no problems with sufficiency. We consider it necessary to find out who was against the import of eggs, who exactly indicated that there is no need to import eggs, existing volumes will be enough. The question arises whether the companies that initiated this process are to be blamed for dumping.
To note, according to the Statistical Committee of the Republic of Armenia, in March 2021, compared to March 2020, the price of eggs jumped by 78.2%, and in March alone - by 8.1%. Prior to that, in February 2021, the price of eggs jumped by 52.5% per annum, in January 2021 - by 26.4% per annum, in December 2020 - by 18.5% per annum. To note for comparison, that a year earlier, in March 2020, egg prices declined by 31.2% per annum, and such rates with a small difference were maintained until September, after which a monthly rise in price began.
By Easter Day on April 4, the price of eggs in retail chains was 250 AMD per egg. Meanwhile, here and there, near the shopping centers, arbitrary counters were opened, where the price of an egg reached 500 AMD. There was a calm speculative unlicensed trade, which was not hindered by anyone. A year ago, the price of eggs was from 25 to 50 AMD per egg, depending on the company and size.