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From March 1, the prices of dairy products will increase again.
The increase will be influenced by the increase in costs for higher prices of oil, energy, plastics and the abolition of the credible 6% VAT scheme that started on January 1, 2022.
Due to the increase in costs due to these factors, the representative of the company “Lufra”, Luis Ndreka told Monitor that the company has already announced that from March 1 prices will increase by 10%.
“We made an announcement at the beginning of February that we will increase prices at the beginning of March, because we have contracts that we must respect. Prices will rise by about 10% because costs have risen sharply. The price for raw material has risen considerably, increasing the cost of milk produced by farmers. The costs of plastics in the world market have also increased significantly, which is reflected in Albania. Also the price of electricity is directly affecting the costs, as our industry requires high use of electricity. “The price of oil has also affected us a lot.”
Processors are currently facing shortages in finding milk produced by small farmers. The market supply for milk is lower than the demand for dairy products, which is causing processors to face the pressure of farmers every day to increase the price.
Sajmir Begaj, the representative of the company “Erzeni” stated for Monitor that the abolition of the credible VAT scheme makes it financially impossible for the processors to collect milk at a higher price.
“The price of milk from farmers for this year has increased by about 10% more than years. Despite its increase in daily pressure from farmers to increase the price of milk, as they too have increased costs from raw materials. We are currently supplied by farmers with milk 50 cents per liter, while in Italy the price of milk from farms is sold at a price of 30 to 40 cents per liter. It is not the fault of the milk processors. The state after removing the creditable VAT 6% had to provide direct subsidies to farmers. This is a constant demand of the industry. We have requested direct payments for the farmer 10 ALL / liter. “If there is no possibility for the implementation of the subsidy for liters of milk produced, the farmer, regardless of the number of livestock, 6% of the reimbursable VAT that was removed from January 1, 2022”.
According to Mr. In addition, milk production has declined among small farmers. “Many small farmers who raise 1 or 2 cows are leaving for emigration. Large farms have grown, but their number is much smaller compared to small farmers, which fails to balance the amount of milk produced in the market. “The price of milk for this year has increased by about 10% over the years.”
Due to the increase in the price of plastics and inputs of agricultural materials, the company “Erzeni” years from July 1 increased by 5% the prices of dairy products. Subsequently, due to the changes in the energy price from 9 lek / kW to 33 lek / kW supplied in the free market and the increase in the price of fuel from January 1, 2022, a 5% increase in prices was applied in the market again.
Dairy processors claim that further price increases would penalize domestic industry, as more imported products would be sold at a cheaper price in the market. To compensate for the high increase in reproduction costs, companies are requesting a review of the creditable VAT scheme./Monitor/
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