Decline in butter price forecast in Armenia in next 1-2 months

Decline in the price of butter is predicted in the Armenian market in the upcoming months, Artak Shaboyan – chairman of the State Commission for the Protection of the Economic Competition (SCPEC), told reporters.

“The prices of butter started to decrease in the international market, and in Armenia as well there is a tendency of decline in price of this product. We think the butter price will decrease in the next one-two months. Although currently there is a decline in butter price in our market, but, we think that the main affect will be demonstrated one-two months later”, he said.

He also touched upon the butter importing companies, stating that certain structural changes were made in the market. In particular, if previously, 80% imports of butter belonged to the Alex Holding, now it is 55%. In line with this, there are also 28 economic entities that also import butter and comprise 40% of the market. They mainly import from the countries of the Eurasian Economic Union (EAEU).

The prices of butter increased in Armenia in September 2016 which was conditioned by the increase in import prices, in other words the increase of butter price in the international market affected also the prices in Armenia.