THREE BIG PRODUCERS FINED FOR RAISING EGG PRICES THROUGH ANTICOMPETITIVE AGREEMENT
Noyan Tapan
Apr 11 2007
YEREVAN, APRIL 11, NOYAN TAPAN. At the April 11 sitting, the RA State
Commission on Protection of Economic Competition made a decision about
fining the three biggest economic entities in the egg sale market –
the poultry factories of Lusakert, Arzni and Yerevan in the amount
of 1% of their 2006 revenues.
The fine was imposed for raising egg prices through an anticompetitive
agreement.
A study conducted by the commission has revealed that in April-December
2006, the price of egg produced by Lusakert Poultry Factory rose
from 31.1 to 51.1 drams (about 0.14 dollars), while the price of
food for hens remained unchanged in this period, making up 66%
of cost price. In the indicated period, the profitability of the
company increased from 11.4% to 57.7%. According to the commission,
the same policy of price changes was used by the poultry factories
of Arzni and Yerevan, particularly in December 2006 when production
of eggs exceeded their sale. The last circumstance was considered as
a case of sale restriction.
It is noteworthy that the representative of Lusakert Poultry Fcatory
(unlike representatives of the two other companies) was not present
at the commission’s sitting.