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Livestock and farms are at risk of bankruptcy from not being able to afford the cost of keeping livestock.
The price of milk as a raw material is being bought more expensive than ever by processing factories because the costs of farmers and ranchers have increased endlessly.
To stop the outflow of livestock, dairies are forced to buy more expensive milk. Increasing costs are being amortized by processors in raising the prices of dairy products. Every operator in the market this year has increased prices at least 2 times.
The Association “Dairy Processing Industry” raises the concern that this situation is also threatening the bankruptcy of dairy processing plants. The executive director of the association Aldo Hoxha told “Monitor” that cow’s milk is 31% higher, sheep’s 33% and goat’s 50%.
“Factories today are buying milk at the highest price ever bought, because farms and farmers are in a state of bankruptcy, from rising prices and costs for every activity they perform for livestock. Along with them, the entire dairy sector will go bankrupt. With a maximum of money, cow’s milk was bought from factories at 58-59 lek / liter with VAT, while now it is being bought with a maximum of 76-77 lek / liter with VAT. Sheep milk used to be bought for a maximum of 90 lek with VAT, while now it is bought for 120 lek / liter with VAT. Whereas the maximum price of goat milk was 60 lek with VAT, and now it is being bought for 90 lek with VAT. If processing plants do not buy at this price, they go bankrupt and will leave the sector. If the farmers leave, we are automatically bankrupt too. “The sector is in a dramatic situation due to the high informality of dairies and street milk that is hurting us every day and more”, said Mr. Hoxha.
According to him, the increase in the price of milk has come from the increase in the costs of keeping livestock. On the other hand, in addition to buying more expensive milk, processors are also suffering from rising costs of energy, gas, plastics and oil.
“The situation with costs is very difficult. Everything has risen in relation to the price of raw materials, oil, gas, plastics, electricity. In addition, factories are buying milk at a much higher price, because the prices of animal feed have doubled 2-3 times. The price of corn is 3-fold, soy 2-fold, alfalfa 3-fold. Agricultural inputs have gone 250% increase (nitrate, urea, phosphate). I am bringing you just one example. A farm in 2021 spent 1,100,000 ALL on agricultural inputs to plant its own lands. The same farm, to plant the same area in 2022, spent 3,700,000 ALL “.
The representative of the Dairy Processing Industry Association emphasizes that if this situation continues and there is no proper intervention by the government, then the domestic dairy processing sector will not be competitive in the market in the face of imported products and will normally go to extinction. complete. In this situation, according to the association, it is necessary to meet the ongoing requirements of the sector, such as:
1- Direct subsidy to livestock 10 lekë for each liter of milk produced that is delivered to licensed collection and processing points, and not for livestock.
2- 6% VAT on sales in the dairy processing sector
3- Approximation with the support schemes that the region provides for farmers./D.Azo / Monitor
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