PRECONDITIONS RULE OUT FAVORABLE EXPECTATIONS FOR ARMENIAN CHEESE MAKERS – ARMEN GIGOYAN
21:07 * 31.03.15
Cheese makers cannot now say that Armenia’s membership in the Eurasian
Economic Union (EEU) has affected them.
However, a number of preconditions rule out favorable expectations,
Armen Gigoyan, Chairman of the Cheese Makers Union of Armenia,
told Tert.am.
The reason is the depreciation of the Russian ruble and higher-quality
cheeses Belarus and Ukraine are exporting to Russia.
“We have information that Belarus is offering Russia cheeses at
extremely low prices by showing an approach of statesmanship. And if
the cheeses enter Armenia rather than Russia, local producers will
face problems,” Mr Gigoyan said.
Numerous economists claimed that cheese had good export prospects in
the context of Armenia’s accession to the EEU.
“Our cheeses are specific as compared to theirs. Of course, we have
demand every year. Some of our producers make some taste changes to
make their cheeses closer to the natural taste of cheese on Russia’s
markets. But the price is the most important,” he said.
Armenia is not yet ready to start competition.
Armenian cheese makers hope that Russian markets will take more
interest in the price for Armenian cheeses after the Russian ruble
has stabilized.
“The world milk price is declining, and it means problems for farmers
not only in Armenia, but also in other parts of the world. We are
going to have a hard year,” Mr Gigoyan said.
The reason is a lower price for milk powder, which is a serious
challenge to whole milk producers.
“Producers of cultured milk foods prefer milk powder to spending
money on whole milk,” he said.
It will cause a decline in demand and prices, and famers will have
to choose between waiting for another year and slaughtering their
animals. As a result, it will cause a deficit of the primary product
for cheese.
“We are very concerned because if we have such a trend this year,
it will cause a decrease in the cattle head. It will be a serious
problem for the following years.”