Large milk and dairy processing companies have announced new price increases from June 6 in all retail outlets. About 55 items of buttermilk, cheese, yoghurt, etc. will increase from 10 to 50 percent, according to the attached list that one of the major factories has distributed to retail outlets across the country. 

This is the fourth organized price increase within this year. According to the data from the attached list, the price of butter has experienced the highest increase, which for some types is expected to be 50 more expensive after June 6. One of the packages of sheep butter will be sold for 1200 lekë after June 6 from 800 lekë currently sold. Sheep bathtub butter will be sold for 600 lek after June 6 from 375 lek currently. 

A glass of 380 grams of yogurt will be sold for 55 lek from the current 50. A 950 gram bottle of yogurt will be sold for 137 lek from the current 127 lek. 400 grams of buttermilk will be sold for 40 lek out of 32 currently. A box of 900 gram sheep cheese will be sold for 840 lek from 770 lek (see the new price list below). 

Sources from the market claim that after the price increase there are many reasons. Initially electricity that was reflected earlier in the year and now the rising cost of raw materials especially milk, at a time when the number of livestock on small farms is falling rapidly. 

While milk production is declining demand is also increasing due to the increase in the number of visitors compared to a year ago. 

Managers of one of the largest dairy processing companies in the country said, many small farmers raising 1 or 2 cows are leaving for emigration. Large farms have grown, but their number is much smaller compared to small farmers, which fails to balance the amount of milk produced in the market. 

The price of milk has risen by over 15 per cent this year, as a surge has occurred for all raw materials since electricity by around 300%, packaging products and other costs that came from the tax change. 

The livestock sector has entered a crisis spiral in recent years due to the lack of subsidies in agriculture and the mass abandonment of the village in the last decade. According to INSTAT data, the number of livestock heads has decreased by about 20 percent over the last 5 years, while this year the decline will be faster. 

Small farms with few heads are being closed by abandoning the village, while large farms are facing high costs as almost all livestock feed is imported from abroad. After the war in Ukraine feed prices have risen, while farms are not subsidized by the government. Very soon Albanian dairy products will compete with imported products. 

(Source: Monitor)