Milk-processing enterprises of Ukraine have colluded

The Administrative Board of the Sumy Regional Territorial Department of the Antimonopoly Committee of Ukraine began consideration of a case on May 16, 2014, regarding the simultaneous reduction by milk-processing enterprises of purchase prices for milk intended for industrial processing, which is purchased from the population, to the same level, which is currently the lowest in Ukraine. Such actions contain signs of anti-competitive concerted practices by business entities. The case was initiated during the review of submissions from the Department of Agro-Industrial Development of the Regional State Administration, the Sumy District State Administration, as well as numerous complaints from villagers regarding the sharp simultaneous reduction of milk purchase prices across most of the region.

In particular, starting from April 1, the price of milk fell from 2,600–3,200 hryvnias per ton to 2,300 hryvnias per ton, and from April 16—to 2,000 hryvnias per ton. As a result, competition in this market was eliminated, and people selling milk experienced a restriction in their choice of milk-processing enterprises.

It should be noted that in 2012, milk-processing enterprises purchasing raw milk in the Sumy region had already been fined for price collusion in the total amount of 400 thousand hryvnias. Let us recall that at that time Russia declared a “milk war” against Ukraine.

Yuliia Yaroshenko