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Peru: Dairy industry denies price-fixing; rejects potential M&A regulation

By  |  January 17, 2017
Peru: Dairy industry denies price-fixing; rejects potential M&A regulation

Rolando Piskulich, President of the Association of Dairy Industrialists of Peru, has rejected the accusations that the largest players in the sector have engaged in a long-standing scheme to control the prices of their products. “Such a thing doesn’t exist. Things cost what they cost, and as much as the market will allow us. This is not something we are allowed to do in the food market” said Mr. Piskulich.

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    Piskulich followed with remarks dismissing the damages that may be caused by un-checked mergers and company acquisitions in the country, speaking against current efforts to codify M&A regulation. “Peru is not in a position where mergers are a factor dragging back development. There is only one very concentrated sector. In my opinion, I hope it doesn’t happen. I don’t see the benefit.”

    Agriculture minister José Hernández recently called out the high rate of concentration in the dairy sector, as well as expressing doubts regarding the industry’s transparency. “We have one milk company, Gloria, which has a dominant position in the market for purchasing milk. Because of this they are able to import powdered milk, set the prices for the milk made in the country, and still pay producers the same amount… It begs attention. If there were more competition the price of dairy should not rise so much” warned Mr. Hernández.

    Full Content: La República

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