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Livestock decline, imported milk replaces domestic production, is cheaper

2023-06-05 08:01:39Biznes SHKRUAR NGA REDAKSIA VOX
Livestock decline, imported milk replaces domestic production, is cheaper
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In the domestic market, the weight of imported milk has increased, compensating for the contraction of domestic production.

For the period January-April 2023, according to Customs data, the amount of imported milk increased by 28% compared to the same period in 2022. In value, the imports of the 4 months increased by 39%.

Some local companies for this year, referring to the final sale prices in supermarkets, have reduced the prices of packaged cow's milk by 30 to 36% for the month of May compared to the month of April. So according to data from processing factories, cow's milk from Albanian farmers continues to be sold for 65 to 75 Lek without VAT or 80 to 90 Lek with VAT.

Operators claim that there is no drop in production, because the price is very favorable at this time for livestock farmers. But the amount produced still does not meet the demand of the processing sector. But in this period, according to them, the imported raw material does not exceed 3-5%.

"Even though the price of imported milk has fallen significantly, domestic milk is still not falling, as there is high demand from processors who do not have stored products. Domestic production is not sufficient. Another reason for not reducing the price is the high costs of the Albanian farmer that come from the lack of refunds and the abandonment of farms by farmers due to emigration", claimed one of the processing companies.

The operators add that the price of cow's milk abroad, including transport costs, is being bought 10% cheaper than the domestic product.

The Albanian Processing Industry Association in a statement in December 2022 for Monitor warned that if the situation continues in the same form, then these imported products will be even more present in our market, pushing out local products, which will no longer be preferred by the consumer and the Albanian manufacturing companies will necessarily go towards a certain bankruptcy.

"If the government does not increase the appropriate subsidies for livestock farmers, so that livestock farmers have lower costs for milk production, what would lead us to have a price of Albanian livestock farmers' milk that is the same or very close to the price of fresh milk from the farmers of the region/EU and if there will not be the same prices for oil, electricity, gas, the milk processing sector will have increased difficulties and import products will be dominant and present every days and rather on the shelves of markets, supermarkets and on the tables of Albanian consumers", the association stated earlier.

Based on the import data, their warning seems to have come true and the weight of foreign processed milk products has increased in the domestic market.

Currently, the price of milk of foreign brands has not changed in the market. With the price reduction, domestic milk for the month of May is being sold cheaper than imported milk. The price of packaged cow's milk from local processors is being traded at 160 to 190 ALL per liter, compared to 195 ALL that imported packaged milk is being sold for.

1 month ago, according to an observation by Monitor, domestic milk in some supermarket chains was sold 27% more expensive than imported milk. Specifically, 1 liter of local sterilized milk cost 250 Lek per liter, while milk of the Italian brands "Sterilgarda" or "Adoro" cost 195 Lek per liter.


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