The Ashtarak Kat Company, Armenia’s leading cheese producer, has had the strongest influence on prices in Armenia. The RA Commission for Protection of Economic Competition found out that Arshtarak Kat was the first to raise prices. Others followed suit. The company began gradually raising cheese prices this August. The other 78 companies began raising prices this September.

Although Ashtarak Kat is not dominating the market, it has market power. In 2010, the company’s share in the cheese market was 32.8%, with only 0.5% lacking for it to dominate the market.

The Commission arrived at the conclusion that the company raised its prices much higher than it needed. With a 40 AMD rise in the purchase price for milk, the company should have been content with a 430 AMD rise, whereas it raised its price by 815 AMD per kilogram.

The Commission did not rule out anti-competitive practice in the market. Commission Chairman Artak Shaboyan does not believe such conduct to be highly likely. He pointed out that the company slightly reduced the cheese price this mid-November. However, its brand and distribution network enables it to sell its products at high prices.