Nikoloz Beniaidze, the founder of dairy company Shiraki declared that raw milk price would increase by 20% during the winter season due to the expensive feed and labor force.
Beniaidze noted that currently, raw milk price stood at GEL 1.80, while the company had to increase its cost to GEL 2 to compensate the increased costs for farmers.
"In general, it is relatively cheap for the farmer to produce milk in the period of 2-3 months. When the season is over, we already have to buy expensive food. Apart from that, it used to cost a farmer 35 GEL to hire a worker, now it costs at least 50 GEL. Fuel used to cost two GEL, now it costs twice as much.
If we don't give incentives and encourage the farmers, even 30% that we produce will disappear. You know that 70% is imported, while we have production potential, but the farmer needs support. Products have become more expensive, but the farmer cannot get a proper price, cannot compensate the cost price, everyone has a loan.
As for the price increase, I think that it will increase by 20% before January-February, while late April or early May, the price will come down. In this condition, the minimum raw milk price should be 2 GEL, which does not affect the products. If the farmer does not receive the appropriate amount, milk producing companies will become distributors of powder or Iranian milk-paste," said Beniaidze.
