Revised Scheme of Consumer Prices for Pasteurised Milk

The Ministry of Finance and Commerce and Malta Dairy Products Ltd have just concluded discussions on a revised scheme of consumer prices for pasteurised milk sold in 568cc cartons (1 pint) unflavoured and in 1 litre cartons flavoured.

The need for these discussions was felt following the proposed introduction on the market of fresh milk in 568cc (1 pint) cartons to replace the 1 pint bottled unit. Consumer request for this latter product has decreased drastically over these last years to the extent that its sales make up less than 10% of the total production. Moreover, the present bottling and washing plants have come in for replacement and Malta Dairy Products do not deem it economically viable to invest in a similar plant for a product whose consumer sales are decreasing from year to year.

In its submissions, Malta Dairy Products stated that the consumer price of 568cc (1 pint) pasteurised milk sold in cartons should be 16c as against the present 12c5 in 1 pint bottles. Moreover, while the consumer price of unflavoured milk in 1 litre cartons could be retained at 26c, that for flavoured milk in a similar capacity should go up to 30c.

The Ministry of Finance and Commerce, while giving judicious consideration to the commercial interests of the Company for its economic viability, also reckoned the interests of consumers, particularly those in the lower income group, from the social aspect which arises from such an essential commodity as fresh milk. For that purpose a package was proposed which included partial concessions to the Company's request and which provided at the same time for diluting any financial imbalances which could be brought about by that part of the request which could not be conceded.

Government, therefore, is regulating by means of a Price Order the consumer price of pasteurised milk as follows, until further order:

1 568cc (pint) unflavoured carton 15c

1 litre carton (unflavoured) 26c

1 litre carton (flavoured) 28c

The price of 1 pint bottle shall remain 12c5 while still in production.

Government also conceded that the price of yoghurt shall be increased by 1c. Moreover, it was exempting the Company from further contributions, after the Agreement, of the Lm100,000 per annum towards the Beef Subsidy Scheme. Government also confirmed its commitment to provide an adequate site to the Company to enable it to construct a new modern factory after it had secured its financing from its own resources.

The Ministry of Finance and Commerce committed itself also to revisit the Agreement within twelve months if documented audited evidence is produced to show any adverse effects of the new price order on the financial situation of the Company. Such a revision, however, was not to be interpreted as an increase in the consumer price of milk.

If the Company would stop producing fresh milk in 568cc (1 pint) cartons, the adverse financial effect which it was projecting would, therefore, certainly not materialise and Government would consequently reserve the right to review the price structure of flavoured milk in 1 litre cartons and demand immediate payment of MDP 's annual contribution towards the Beef Subsidy Scheme.

Skema Riveduta ta' Prezzijiet ghall-Konsumatur tal-Halib Frisk

Il-Ministeru tal-Finanzi u Kummerð u l-Malta Dairy Products Ltd kellhom taódidçt dwar skema riveduta ta' prezzijçt tal-óalib frisk mibjuæ lill-konsumatur fil-kartuna ta' 568cc (pinta) bla essenza u fil-kartuna tal-litru bl-essenza.

Il-ótçía ta' dawn it-taódidçt inóasset minóabba li se jiddaóóal ma jdumx fis-suq il-bejæ tal-óalib frisk fil-kartuna tal-568cc (pinta) li se jçóu post il-flixkun tal-pinta. Dan æalçx it-talba tal-konsumatur æal dan il-prodott naqset tant, li l-bejæ tçæu kçn sew taót l-10% tal-produzzjoni kollha. Barra minn dan l-impjant tal-ibbottiljar u tal-óasil tal-flçxken kçn wasal bçx jinbidel u l-kumpanija óasset li ma jkunx kommerðjalment vijabbli li tinvesti f'impjant çóor simili meta t-talba æall-prodott qed tonqos minn sena æall-oóra.

Fit-talba taæha, il-Malta Dairy Products Ltd kçnet qed tæid li l-bejæ ta' 568cc (pinta) tal-óalib frisk abjad kellu jitla' æal 16ð fil-kartuna mill-prezz ta' 12c5 fil-flixkun kif inhu llum. Barra minn dan, filwaqt li l-prezz tal-óalib abjad (bla essenza) fil-kartuna tal-litru kellu jibqa' 26ð, dak bl-essenza kellu jitla' æal 30c.

Il-Ministeru tal-Finanzi u Kummerð, filwaqt li wiúen sew u óares l-interessi kollha tal-Kumpanija mil-lat ta' vijabilita' kummerðjali, óares sew ukoll l-interessi tal-konsumatur speðjalment dak bi qlçæ baxx mil-lat soðjali miíjub minn utilita' essenzjali li æandu l-óalib pasturizzat. Æalhekk ippropona 'pakkett' li fih inkluda konðessjonijçt parzjali æat-talba tal-Kumpanija u pprovda æal xi úbilanð finanzjarju li tista' tóalli dik il-parti tat-talba tal-Kumpanija li ma setæetx tiíi milquæa.

Æaldaqstant, il-Gvern qed jirregola, permezz ta' 'Price Order', li l-bejæ tal-óalib frisk sakemm joóroí avviú çóor, æandu jkun kif íej:

Kartuna ta' 568cc (pinta) bla essenza ... ... ... ... 15c

Kartuna ta' 1 litru bla essenza ... ... ... ... ... 26c

Kartuna tal-litru bl-essenza ... ... ... ... ... 28c

Il-bejæ tal-óalib frisk fil-flixkun tal-pinta æandu jibqa' 12c5 sakemm dan jibqa' jinbçæ fis-suq.

Il-Gvern ikkonðeda ukoll li l-prezz tal-prodotti tal-'yoghurt' joæla b'1c. Barra dan eúenta lill-Kumpanija mill-kontribuzzjoni ta' Lm100,000 fis-sena li obbligata taæmel æall-Iskema tas-Sussidju tað-Ðanga b'effett mid-data ta' qbil ma' dawn il-proposti. Il-Gvern tenna wkoll l-impenn tçæu li jipprovdi sit adegwat lill-Kumpanija bçx din tkun f'qaæda li tibni fabbrika ídida moderna li tilqa' l-ótiíijçt taæha wara li tkun assigurat il-finanzjament taæha mir-riúorsi propji.

Il-Ministeru tal-Finanzi u Kummerð wçæed ukoll li jirrevedi il-ftehim fiú-úmçn tnax-il xahar kemm il-darba jitressqu dokumentazzjoni verifikata minn awdituri li turi effett avvers ta' dawn il-miúuri fuq il-qaæda finanzjarja tal-Kumpanija. Din ir-riveújoni, iúda, ma kellhçx tfisser riveújoni tal-prezz tal-óalib.

Jekk kemm il-darba il-Kumpanija ma tkomplix bil-produzzjoni tal-óalib frisk fil-kartuna tal-568cc (pinta) allura l-effet finanzjarju avvers li l-Kumpanija qed tibúa li jista' jkollha ma jimmaterjalizzax ruóu u æaldaqstant il-Gvern jirriserva d-dritt li jirrevedi l-qaæda dwar il-prezz tal-óalib bl-essenza fil-kartuna tal-litru u jitlob il-ólas dovut mill-Kumpanija bóala kontribuzzjoni æall-Iskema tas-Sussidju tað-Ðanga.