Armenian Dairy Producers Seek Revised Payment Terms Amid Ongoing Sector Challenges

Dairy producers in Armenia, represented by the Hay Kat NGO, have called for revised payment terms during a discussion at the Competition Protection Commission (CPC) led by its President, Gegham Gevorgyan. The meeting explored the specific needs of the dairy sector, particularly concerning perishable products such as milk, sour cream, and cottage cheese.

The producers proposed a revision of payment deadlines, suggesting shorter terms to align with the short shelf lives of these products. Additionally, they requested an increase in the allowable percentage of spoiled products that can be deducted from income taxes, pointing out that spoilage often exceeds the current 1% allowance in the dairy industry.

CPC President Gegham Gevorgyan mentioned that since last year, new legislative regulations require retail chains to settle payments to suppliers within 30 days for food products. If payments are overdue for more than 90 days or if the unpaid debt surpasses AMD 3 million, the CPC has the authority to initiate administrative actions. These changes have reportedly improved the financial landscape, with a recovery of accumulated debts amounting to AMD 2.5 billion.

Despite these advancements, dairy producers have expressed further concerns that need to be addressed to support the industry's unique challenges.

The meeting concluded with a consensus to explore mutually acceptable solutions to the issues raised, with a focus on influencing consumer behavior to aid the dairy sector further.