Albania's bronze price rises

This is the second time that this year the company “Vita 2001” increases dairy products prices. The price of cow yogurt traded by this factory from 45 lek increased 50 lek (growing 11%), sheep's cheese from 580 lek/kg rose to 630 lek/kg (growing 8.6%), cow cheese from 470 lek/kg to 520 m/kg (growing 10%).

The manager of the milk processing factory in the village of Nizhavec of the Pogradec district, Taulant Pupa told “Monitor” that in February they raised the prices 5% due to the price of oil and the uncertainty of supply in the first substance that created the launch of the Russian-Ukrainian war.

The distribution of oil prices over $230 per litre has doubled transportation costs. If to bring a supply to Tirana before spending 5,000 dollars a day on fuel, at this cost it will cost 8,000 dollars a day. On the other side, the start of the war created many uncertainty and high prices in the supply chain, from the first nutrients to animals, where there was fear of corn shortages”Sir, underline. Poupa.

The second price increase that started on April 25th comes due to the price of sheep and cow milk from farmers. After April 1st, sheep's milk supply of 95-dollar VAT is being bought to farmers for $130 a litre (up to 36.8%), and a total of 48 dollars is being bought for $60 per litre (up 25%). Many farms in this area are on the brink of bankruptcy.

The second grade in prices is reflecting the cost of production from increased milk from farmers. A few days ago about 30-40 farmers in the area, where we are supplied with milk, in a peaceful protest, asked us to raise the price of milk. Their demand relied on the high increase in the cost of carrying livestock. We accepted their demand to buy their milk more dearly, since farmers would otherwise sell their livestock because they were unable to keep and leave for immigration to work. It's about farmers who have invested familiarly with income earned from immigration to support up to 300 heads of sheep”Mr. President. The manager of the milk processing factory that operates on the market from 1992 (below see video).

According to the company's representative “Vita 2001” this year is feeling a lot of difficulty finding milk from farmers, as many of them are leaving to work in Germany, as the expensive nutrients have made their livestock unconventional.

“Nutrition prices for animals have increased by over 30%. In all, a ion ball of 600 dollars costs 1,300 dollars, corn from 100 pounds [40 kg] to 50 pounds [55 kg]. The demand for milk is two-fold, but only half of it is managed to secure from farmers, as many of them have left in migration. We are forced to link contracts with farmers for the purchase of milk in order not to leave, as this would create difficulties for finding raw materials in the factory. The processor's cost has also been increased by other materials we use, such as Maya, culture, degenerative (Coustic soda, acid, chlorine, line disinfectant), have increased by 50% ”, it supplants.

The processors repeat their demand for refueling milk for litres produced by the farmer and not for livestock leaders, as envisioned in the national agriculture scheme following the removal of 6% creditable VAT. The 10m-liter milk processing of farmers is the right solution that would increase 20% of milk production, but would also encourage the farmer not to abandon land and livestock. If a $10 litre compensation is to be made, there will be a formalisation of the economy, as the processors are obliged to issue the tax bill, who is unformed cannot operate on the market.”, recommends Taulant Pupa from the company “Vita 2001”, where 24 local residents are employed.

The increase in costs from the price of expensive milk of farmers, following the removal of the VAT schema renewable from January 1st, 2021, energy, oil, plastic prices have been reflected with price increases in other market operators. In mid-April another company increased dairy prices, following the increase that took place in March. The price hike has started since July 2021, when operators began to suffer the increase in plastic and energy prices from the liberalised market. /Monitor