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Competition Authority in-depth investigation into major producers of dairy by-products

2024-01-18 11:23:34Biznes SHKRUAR NGA REDAKSIA VOX

Competition Authority in-depth investigation into major producers of dairy

The Competition Authority announces that it has opened an in-depth investigation into the market for the production and wholesale of milk by-products.

The institution announces that the Competition Commission, in its meeting on 29.12.2023, considered the investigation procedure against the enterprises Erzeni LLC, Gjirofarma SHA, ADG LLC (Lufra), SHAKA Boboshtică LLC in the market of production and wholesale of by-products of dairy (cheese and butter).

Referring to the analysis of the market for the production and wholesale of milk by-products, it turns out that the behavior of companies with significant market shares, Erzeni SHPK, Gjirofarma SHA, ADG SHPK (Lufra), SHAKA Boboshtića SHPK, may constitute abuse of position dominant, according to Article 9 of Law no. 9121/2003.

For these reasons, the Competition Commission decided to open the in-depth investigation procedure against these four companies in the market of production and wholesale of milk by-products. The in-depth investigation will cover the time period from January 1, 2022 to December 31, 2023.

Although the decision was taken at the end of December, its full content and the detailed reasoning that motivated the opening of the investigation have not been published yet.

The opening of the in-depth investigation was decided following a preliminary investigation procedure in the market of production and wholesale of milk by-products. The investigation was opened in February last year, to assess the behavior of the companies in the period from January 1, 2022 to March 31, 2023.

From the monitoring of the market that the Authority carried out in that period, after reports in the media about the announced increase in prices, it resulted that the prices of dairy by-products, mainly white cheese, cottage cheese and butter, had increased by up to 38% from some of the enterprises that operate in the market of production and wholesale of milk by-products. The growth occurred over a period of time.

According to the Competition Commission, the strong and simultaneous increase in the price of dairy by-products (mainly cheese and butter) may be signs of price fixing as a result of agreements and/or concerted practices between two or more enterprises, according to forecasts of article 4 and 9 of the law no. 9121 dated 28.07.2003 "On the protection of competition".

From the information administered by the National Food Authority and cited by the Competition Authority in the decision to open the preliminary investigation last year, it results that in the milk production, processing and trading market in the territory of the Republic of Albania, about 240 subjects, including natural persons who process milk in limited geographical areas and with very small quantities.

Based on the submitted data, the Competition Authority carried out inspections at enterprises that own significant parts of the milk production, processing and trading market in the cities of Tirana, Durres, Kavaja, Divjaka, Lushnja, Fier, Vlora, Berat, Kruja and Shkodra.


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