Cheese price

Источник: The DairyNews
Possibilities of quality cheese production and marketing in Russia are narrowing. Market participants say one of the main problems of the market is vague cheese price formation. Today a consumer may find on the shelves traditional Russian cheeses at different process – from 200 to 900 rubles per kg.
After the food embargo was introduced in August 2014 a significant decrease of cheese supply was forecasted. According to Federal State Statistics Service (Rosstat) data, in 2014 import of cheese and cheese products to Russia decreased by 35%: in September-December 2014 the country imported 63.5% less compared to the same period of 2013.

As per April, 1st 2015 share of Russian cheeses reached 82% from total sales, in 2014 it was 47%, said Oksana Tokareva, METRO Cash & Carry Head of Corporate & External Communications. The expert associates this fact both with the embargo and local producers’ product line expansion.

Below is a price formation formula by Andrey Dahnovich, Foodland Sales Director.

The expert believes it would be comfortable for both milk and cheese producers to work with milk purchase price at 23-24 rubles per liter, cheese factory price – around 300 rubles per kg, consumer price – 420-430 rubles per kg. Current milk purchase price is 20 rubles per liter, factory price – 250-270 rubles per kg, consumer price – 400 rubles per kg. Mr. Dahnovich believes the level of 20 rubles per liter to be low for quality milk production. The factory cheese price (250-270 rubles per kg) is possibly comfortable for processors, says the expert, but it is decreasing and in the nearest future it may cause problems for cheese factories. The consumer price, according to Foodland representative, could be 370-380 rubles per kg, but today it is around 400 rubles per kg.

It’s worth mentioning, that annual cheese production growth reached 32.7% in 2014, while milk production increased only by 0.2-0.3% (to 30.62 mln tons).
30.01.2024
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