The paultry sector will soon come to a standstill, we will be left without domestic production, Mamuka Nozadze, the founder of "Nozadze Poultry", told "Commersant" .
According to him, due to the increased cost, the company has to revise its price policy in the recent period, but despite the chicken meat price has reached the highest level, even if it is sold for 12 GEL, the company will still suffer losses.
"I will probably quit this business soon. The government is not taking any steps despite we warned it to remove VAT or the sector would come to a standstill, but they did not listen to us. The cost of all the components included in the product has increased, the chicken meat production depends on imports, for example we cannot buy Georgian corn as it is exempt from VAT while chicken is taxed. It turns out that I taxed that corn and I have to pay , for this reason I have to buy imported, as well as medicines, soybeans, concentrates. Producers also pay an increased rate for taxes, gas and electricity tariffs are unrealistic. Agriculture is free from VAT, only eggs and chickens are taxed. A few days ago I talked to the industry representatives and everyone is going to quit this business.
Raw material prices have increased by 100%-110%, corn prices have increased by 60% and we cannot hike prices for chicken meat despite the current situation. Even if we sell the chicken meat for GEL 12, we will be still in loss. So the country will face a shortage of local production by the New Year, the country will switch to imports and we will be left without domestic production," says Mamuka Nozadze.