Kyrgyzstan’s Large Plants Enforcing Restrictions on Milk Purchase
Large Dairy Processing Plants in Kyrgyzstan Temporarily Limit Milk Purchase
Bishkek – 14:34, 11 June 2024 – Dairy processing plants in Kyrgyzstan have recently started to limit their purchase of milk or even temporarily suspend production, as reported by the Ministry of Agriculture.
One of the affected companies, Issyk-Kul LLC, a subsidiary of Umut and K LLC, did not purchase milk for three days but has since resumed the process with restrictions starting from June 10th. Similarly, Ala-Too Sut Agricultural Complex has been closed for the second day due to repairs but has now resumed the purchase of milk. Ak-Bulak Plus LLC also temporarily halted operations on June 10th but has resumed purchases in limited quantities.
Other companies, such as Sut-Bulak and Ak-Zhalga CJSC, are also purchasing milk with restrictions. Smaller enterprises like May-Bulak Karakol and Balykchi-Sut LLC continue to purchase milk within the capacity of their plants, typically around five tons.
Following a meeting between the heads of these enterprises and local authorities in mid-May, an agreement was reached to pay farmers 27 soms per liter of milk, excluding any margin for milk collectors. This payment arrangement was maintained for the last ten days of May, with a slight decrease to 25-26 soms per liter from June 1st to 10th.
According to the Ministry of Agriculture, the current restrictions on milk purchases are primarily due to the inability of plants to make payments to farmers and a lack of sales of finished products. Some plant managers have also cited necessary repair work as a reason for production stoppage. However, they expect the dairy market to stabilize in the coming days, with the purchase price for milk likely to settle around 25 soms per liter.
Overall, the Ministry of Agriculture reassures that the situation is expected to improve soon, allowing dairy processing plants to resume their operations fully.
