Cheese sector crisis in Russia is expected in spring 2014
This is according to an opinion, passed by Anna Vedernikova, Belebeyevsky Dairy Plant, JSC Sales and Marketing Director, within the conference “Milk and Dairy Market” held by DairyNews the previous week in Moscow.
As a consequence of raw milk price increase prices for Russian cheese were growing at a rate of 5, 10, 15 and even 20 per cent per month this year. In November – December the prices for Dutch and Rossiysky cheeses, known to be the cheapest market commodities, will exceed 300 rubles, estimates the expert.
Big retailers’ interests are currently the main driver of market development, not consumer choice. While cheese production is decreasing this year, retailers loose the “price dispute” with manufactures. At the moment the retailers are forced to accept producers’ prices, as a result the demand is likely to decrease. The expert predicts spring will be the most challenging period for producers, as the price will start to roll back and the raw milk deficiency will start.
