Major Armenia Egg Producer Fined 100 Million Drams for Withholding Goods

State Commission for the Protection of Economic Competition of the Republic of Armenia, at its Mar. 30 meeting, decided to fine major player in Armenia’s egg market Lusakert Pedigree Poultry Plant LLC about 100 million drams (about $273,973 US).

According to the Commission, a deficit was created as a result of Lusakert not putting its products in the market. According to the Commission, the company abused its dominant position in the market.

The Commission began investigations into the egg market after a sharp increase in the price of eggs and an alarming egg deficit in the country just before the new year’s celebrations in Dec. 2010.

It became evident during inspections that during those days when there were sharp increases in the price of eggs and an obvious egg deficit in the country, egg manufacturers were storing large quantities of eggs, the majority being stored by Lusakert (LPPP).

“Thus, in the period of Dec. 23–27, 2010, when there were no eggs in stores, the average daily surplus kept by producers was 4,506,849 eggs, [a little over] 83% (or 3,763,838 eggs) of which belonged to LPPP. This company also provided 52% of the average daily production volume of 6 poultry plants.

“During the last week in December, when there were unmet demands for eggs in stores, LPPP did not deliver a part of its production; that is, it didn’t deliver the full amount of the eggs it produced, which contributed to the emergence of the deficit,” reads the Commission’s statement.