The Competition Authority in Albania has commenced a preliminary investigation into the dairy by-products production and wholesale trade market.
The investigation was initiated in February of this year, but the decision was kept confidential to avoid influencing the ongoing investigative process.
According to market surveillance conducted by the Authority in February, following media reports of anticipated price hikes, it was discovered that prices of dairy by-products, primarily white cheese, kashkaval cheese, and butter, had surged by up to 38% from certain businesses engaged in the production and wholesale trade of dairy by-products. This price escalation occurred over a relatively short period.
The Competition Commission suggests that this significant and simultaneous increase in dairy by-product prices, especially cheese and butter, may be indicative of price-fixing resulting from agreements and/or coordinated practices among two or more enterprises, as outlined in Articles 4 and 9 of Law No. 9121, dated 28.07.2003, “On the Protection of Competition”.
Due to these concerns, the Commission has decided to initiate a preliminary investigation to evaluate the conduct of enterprises during the period from January 1, 2022, to March 31, 2023.
Based on data provided by the National Food Authority, it is evident that approximately 240 entities are involved in activities related to dairy production, processing, and trade in the territory of the Republic of Albania. This includes individual entrepreneurs processing milk in geographically limited areas and in small quantities.
Drawing from this information, the Competition Authority has initiated inspections at enterprises that hold significant shares of the dairy production, processing, and trade market in cities such as Tirana, Durrës, Kavajë, Divjakë, Lushnje, Fier, Vlorë, Berat, Krujë, and Shkodër.
In early February 2023, media reports indicated a spike in the prices of dairy by-products, particularly those from sheep.
However, in a subsequent response, the Dairy Processing Industry Association issued a press release stating that the price increase for sheep products was only announced by one company, primarily affecting products made from sheep and goat milk. This increase was attributed to a substantial rise in milk collection prices from farmers.
The association clarified that other operators had not announced price hikes for these products and emphasized that no processing company in the market had intentions of raising prices for cattle dairy products.
Nevertheless, despite the arguments presented by the Association, the Competition Authority, through market monitoring, identified price increases by some enterprises and decided to initiate the preliminary investigation procedure.
