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SPAYKA responds to article

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The administration of SPAYKA LTD has issued the following clarification.

"In relation to the comments that some farmers of Darbas village made in a video posted on "A1+"'s website on 17 November 2011, SPAYKA informs that it has never signed any agreements on cabbage sales with the mentioned farmers since there hadn't been any sale agreements.

The prices for each product are linked to the demand in the internal and external market. The company is liable to the farmers that had initially signed contracts.

Taking into account the recent sharp fall of the temperature and snow, the farmers are taking adequate measures to protect the crops or move them to different locations for protection, just like they have always done. It is obvious that the company can't be held liable for the farmers' products, especially since there are no agreements on that.

In addition, the company always receives offers from farmers that initially hadn't signed contracts and are having trouble with selling their products in the maturity season and give their products through a discussion on mutually beneficial conditions. For instance, that is how more than 4,000 tons of cabbage were sold and exported in 2010.

SPAYKA works with thousands of farmers in the Ararat, Armavir, Vayots Dzor, Sisyan, Kotayk, Gegharkunik, Tavush and Shirak provinces. The contracts are signed during the beginning of each season. The company often provides prepayments to farmers that responsibly meet the obligations that they have assumed.

The company has always supported the farmers that it works with by providing fertilizers and consulting. In 2010-11, the company provided large-scale payments to farmers for organizing agriculture.

Even in 2011, the company sold apricots at high prices based on its obligations stated in the contracts. Most of the farmers, especially those from Armavir, Artashat and Vayots Dzor provinces, still owe the company since they have trouble providing crops in exchange of the money due to natural disasters, incorrect use of the technical equipment and the lack of ability to provide high-quality products.

By exporting Armenian products, the company competes in foreign markets where there are rules in the international pricing market and quality standards. To raise the quality of products and the level of competitiveness, the company always works with farming economies by providing them with free seminars and consulting on the products in demand abroad and the adequate technical equipment.

SPAYKA LTD administration