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President Sargsyan Invited Meeting with Agro Processing Companies
Economic News (Information Agency Oreanda)
May 10, 2011 Tuesday
Yerevan. OREANDA-NEWS . May 10, 2011. President Serzh Sargsyan invited
today a meeting with the participation of the management of Armenias
largest agro processing companies. At the meeting with the leaders
of a dozen of the processing companies from the capital and marzes,
which was held at the Yerevan Beer Ltd, present were the RA Ministers
of Agriculture, Finance, and Chairman of the State Revenue Committee,
who presented problems existing in the area of agro purchases and
processing, reforms carried out in the areas of tax and customs
administration, which will touch different spheres, including creation
of favorable conditions for the development projects for the private
enterprises engaged in the area of agro processing.
At the outset, the President noted that his meetings with the major
enterprises and taxpayers are intended to discuss directly with the
businessmen their problems, talk about the present and the future of
the enterprises working in different areas, and speak about their
cooperation with the government. According to Serzh Sargsyan, at
these meetings he has been stressing the importance of working with
the State Revenue Committee and, in general, importance of the entire
process pertinent to tax collection. When I say process, I dont mean
just the entries into the state budget, but rather simplification
of the process, relieving the businesses of unduly burden with the
expectation that the entrepreneurs will consciously do their best
to fulfill their tax obligations, since we dont have other sources
of revenue to pay pensions, wages and defense expenses. Thats why,
in this process we take every precaution not to create risks related
to budget spending.
After the meeting with the leaders of the mining industry and the
bankers, I felt it would be right to hold the next meeting with the
leaders and owners of the processing enterprises because we meet every
year, talk about purchases of agricultural produce and interaction
with the farmers. However, I believe such meetings would be more
efficient if they are held not in the end of summer or beginning
of fall, when it becomes necessary to organize the entire purchase
process, when there is time pressure and it becomes impossible to
solve certain problems but rather now, when the time is right for us
to discuss the problems which your companies face.
I am well aware that youre conducting regular meetings with the Minster
of Agriculture. He was once working in your area, thus I trust hes
fully aware of the problems existing in that particular area. I am also
confident that cooperation of especially processing companies with
the government, precisely, with the Ministry of Agriculture, will be
more efficient. Our agreements are intact and the government, first
of all the Ministry of Agriculture will support you in the process.
The Ministry of Agriculture will be your willing partner on all issues,
and in fall, as we noted at our last meeting, the state will stand
by the farmers.
We have been constantly highlighting the importance of some issues,
and today I would like to articulate them once again so that we dont
forget them. First, it is unacceptable when you sign contracts with
the farmers but later, when circumstances change the quantity of the
produce, etc., start certain discussions related to the prices. It
looks somewhat odd when in two neighboring regions, which do not
differ much, we observe different prices for agricultural produce. I
dont think, its right. I believe the right approach is to start with
the contract signing, so that folks understand the price their produce
will be purchased by; it will also be easier for you to make up your
future programs.
I realize that each product has, so to speak, two prices: one for the
seller, the other for the buyer. The buyer wants to get it for less,
the seller wants to sell it for more. But in both cases, the farmers
as well as the businesses should be able to fix a reasonable price,
so that next year the farmer is interested in growing that produce,
and you, on the other hand, are able to purchase produce for the next
year and sell it with profit. This process must be a two-way street.
I believe that even if not this year, then certainly next year, we
should be able to ensure that all businesses, processing companies
have preliminary assessment of the quantities of the produce to be
purchased and consequently, have contracts. Contracts are essential. I
assure you, that if we are able to sign contracts with the farmers
on the quantity of the produce, next year the quantities of produce
will increase. The number of processing companies is growing, their
capabilities are increasing, and thank God, demand is great too.
Probably, we should be able at some point to solve the issue of
circulating assets so that the wheel spins faster. Every processing
company I spoke with says that there is no problem with selling,
save, of course, for some unforeseen force major situations and the
fact that because of the crisis, the cognac sales have dropped. But it
looks like we are approaching the highest - 2008 level of sales. What
I mean is that you also have a mission to promote the production of
agricultural products not only to process more produce, export it
and have profit but also because the production will have a dramatic
impact on inflation. And this is a significant factor.
We have agreed with the Prime Minister that he will be pursuing this
issue personally until fall. In fall, we will come together with
the Prime Minister and, of course, the Minister of Agriculture and
review the results. I trust, at that time we will be able to talk
more precisely about the conducted works and about certain results
in the context of the entire year.
Just like other meetings, our todays meeting is attended by the
Chairman of the State Revenue Committee. I believe, in his remarks Mr.
Khatchatrian will also touch upon the reforms which are being
implemented in the structure today and speak about the problems that
exist in the area you represent. As I have already noted, these changes
are aimed at the regulation of the field, are aimed at freeing you
from unnecessary red tape so that you spend less time in arranging
your relations with the Committee and spend your valuable time for
producing more goods, President Sargsyan said at the meeting with
the leaders of the major processing companies.
Afterwards, the participants of the meeting discussed with the
President of Armenia problems existing in the area which impede its
development. They also made proposals to address them.
Before the meeting, at Yerevan Beer Ltd President Serzh Sargsyan
familiarized with the working process at the factory and its
development programs, toured the agricultural produce storing,
processing and juice producing units.
Economic News (Information Agency Oreanda)
May 10, 2011 Tuesday
Yerevan. OREANDA-NEWS . May 10, 2011. President Serzh Sargsyan invited
today a meeting with the participation of the management of Armenias
largest agro processing companies. At the meeting with the leaders
of a dozen of the processing companies from the capital and marzes,
which was held at the Yerevan Beer Ltd, present were the RA Ministers
of Agriculture, Finance, and Chairman of the State Revenue Committee,
who presented problems existing in the area of agro purchases and
processing, reforms carried out in the areas of tax and customs
administration, which will touch different spheres, including creation
of favorable conditions for the development projects for the private
enterprises engaged in the area of agro processing.
At the outset, the President noted that his meetings with the major
enterprises and taxpayers are intended to discuss directly with the
businessmen their problems, talk about the present and the future of
the enterprises working in different areas, and speak about their
cooperation with the government. According to Serzh Sargsyan, at
these meetings he has been stressing the importance of working with
the State Revenue Committee and, in general, importance of the entire
process pertinent to tax collection. When I say process, I dont mean
just the entries into the state budget, but rather simplification
of the process, relieving the businesses of unduly burden with the
expectation that the entrepreneurs will consciously do their best
to fulfill their tax obligations, since we dont have other sources
of revenue to pay pensions, wages and defense expenses. Thats why,
in this process we take every precaution not to create risks related
to budget spending.
After the meeting with the leaders of the mining industry and the
bankers, I felt it would be right to hold the next meeting with the
leaders and owners of the processing enterprises because we meet every
year, talk about purchases of agricultural produce and interaction
with the farmers. However, I believe such meetings would be more
efficient if they are held not in the end of summer or beginning
of fall, when it becomes necessary to organize the entire purchase
process, when there is time pressure and it becomes impossible to
solve certain problems but rather now, when the time is right for us
to discuss the problems which your companies face.
I am well aware that youre conducting regular meetings with the Minster
of Agriculture. He was once working in your area, thus I trust hes
fully aware of the problems existing in that particular area. I am also
confident that cooperation of especially processing companies with
the government, precisely, with the Ministry of Agriculture, will be
more efficient. Our agreements are intact and the government, first
of all the Ministry of Agriculture will support you in the process.
The Ministry of Agriculture will be your willing partner on all issues,
and in fall, as we noted at our last meeting, the state will stand
by the farmers.
We have been constantly highlighting the importance of some issues,
and today I would like to articulate them once again so that we dont
forget them. First, it is unacceptable when you sign contracts with
the farmers but later, when circumstances change the quantity of the
produce, etc., start certain discussions related to the prices. It
looks somewhat odd when in two neighboring regions, which do not
differ much, we observe different prices for agricultural produce. I
dont think, its right. I believe the right approach is to start with
the contract signing, so that folks understand the price their produce
will be purchased by; it will also be easier for you to make up your
future programs.
I realize that each product has, so to speak, two prices: one for the
seller, the other for the buyer. The buyer wants to get it for less,
the seller wants to sell it for more. But in both cases, the farmers
as well as the businesses should be able to fix a reasonable price,
so that next year the farmer is interested in growing that produce,
and you, on the other hand, are able to purchase produce for the next
year and sell it with profit. This process must be a two-way street.
I believe that even if not this year, then certainly next year, we
should be able to ensure that all businesses, processing companies
have preliminary assessment of the quantities of the produce to be
purchased and consequently, have contracts. Contracts are essential. I
assure you, that if we are able to sign contracts with the farmers
on the quantity of the produce, next year the quantities of produce
will increase. The number of processing companies is growing, their
capabilities are increasing, and thank God, demand is great too.
Probably, we should be able at some point to solve the issue of
circulating assets so that the wheel spins faster. Every processing
company I spoke with says that there is no problem with selling,
save, of course, for some unforeseen force major situations and the
fact that because of the crisis, the cognac sales have dropped. But it
looks like we are approaching the highest - 2008 level of sales. What
I mean is that you also have a mission to promote the production of
agricultural products not only to process more produce, export it
and have profit but also because the production will have a dramatic
impact on inflation. And this is a significant factor.
We have agreed with the Prime Minister that he will be pursuing this
issue personally until fall. In fall, we will come together with
the Prime Minister and, of course, the Minister of Agriculture and
review the results. I trust, at that time we will be able to talk
more precisely about the conducted works and about certain results
in the context of the entire year.
Just like other meetings, our todays meeting is attended by the
Chairman of the State Revenue Committee. I believe, in his remarks Mr.
Khatchatrian will also touch upon the reforms which are being
implemented in the structure today and speak about the problems that
exist in the area you represent. As I have already noted, these changes
are aimed at the regulation of the field, are aimed at freeing you
from unnecessary red tape so that you spend less time in arranging
your relations with the Committee and spend your valuable time for
producing more goods, President Sargsyan said at the meeting with
the leaders of the major processing companies.
Afterwards, the participants of the meeting discussed with the
President of Armenia problems existing in the area which impede its
development. They also made proposals to address them.
Before the meeting, at Yerevan Beer Ltd President Serzh Sargsyan
familiarized with the working process at the factory and its
development programs, toured the agricultural produce storing,
processing and juice producing units.