Monopolies lead to higher prices
Baku/18.01.22/Turan: There are rumors that after the increase in the price of bread, meat has also risen in price. Meat prices increased by 1-1.5 manats, according to social media. Beef and lamb, which were previously sold for 10-10.5 and 13-14 manats, respectively, are now sold for 12 and 14.5-15 manats. Meat prices are expected to rise again in the near future.
Was the rise in meat prices inevitable? What other products are expected to rise in price in the near future?
Expert Vahid Maharramli answers these and other questions in the program "Difficult Question".
According to him, over the past year, almost everything has risen in price - food and industrial goods, services. And this, in his opinion, was expected.
“Against the backdrop of rising prices, manufacturers are forced to buy raw materials and components at a higher price. The same applies to merchants and merchants - the goods they purchase for sale are now more expensive. The service sector is no exception. Therefore, they all try to sell their goods and services as expensive as possible to compensate for their losses,” Maharramli said, adding that the situation is aggravated by the fact that an atmosphere of uncertainty reigns in the country.
As for the rise in prices for meat and meat products, according to the economist, if feed, livestock care, transportation costs (earlier diesel fuel has risen in price), water supply are becoming more expensive, this will inevitably affect the price of the product.
The expert also drew attention to the fact that the livestock sector in Azerbaijan has long been monopolized. “There are large firms involved in fattening livestock. They have thousands of cattle. These monopolists also dictate the prices for meat.
The meat prices jumped within one day in all slaughterhouses, trading posts, etc. This suggests that the monopolists have worked,” Maharramli said.
If meat would be traded as in former times, cattle farmers, then, of course, there would be a rise in prices. But it would be phased, and not as sharp and total as it is now.
“In the past, family farms played a significant role in the livestock sector. Later, agro-parks arose, which turned pastures into agricultural land. So there were problems for families engaged in cattle breeding. This led to an increase in costs in animal husbandry. In addition, many began to reduce the number of livestock. As a result, small farms do not develop animal husbandry, while large farms are in the hands of agro-monopoly farms. So they dictate the prices. –0—
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