FAS IDENTIFIES COMPANIES THAT DOMINATE IN THE RAW MILK MARKET
26-07-2023 | 09:29
FAS Russia is currently conducting a corresponding analysis
The authority checks pricing in the chain "manufacturer-processor-trade network".
During the preliminary analysis, it was identified that milk producers do not have the opportunity to influence the cost of the products they sell.
Taking into account the fact that milk is a perishable product, producers need to quickly sell it at a price set by dairy plants.
In this situation, the buyer (dairy plant) has a stronger market side in relation to the seller (milk producer).
A low purchase price may lead to a reduction in the number of raw milk producers, especially peasant (farmer) households and owners of personal subsidiary plots, which will affect the competitive environment.
In the current situation on the market, when determining the dominant position, we can talk about the establishment by dairy plants of a monopoly low price for raw milk, which is a violation of antimonopoly legislation.
At the same time, there is no proportional decrease in consumer prices for dairy products in retail chains.
FAS Russia warns of the obligation to strictly comply with the requirements of the antimonopoly legislation. If it detects signs of illegal behavior and setting economically unreasonable prices, the authority will take response measures, including imposition of fines.