Liters and loans
Russian Ministry of Economic Development and Trade proposed the Ministry of Agriculture to reconsider the scheme of dairy industry support and to consider the possibility of subsidies per liter of commercial milk by investment loans subsidizing replacement. The proposal was supported by RSPMO. In 2014 it is planned to allocate 2.3 bln rubles for investment loans in dairy farming subsidizing. But at the moment the Ministry of Agriculture decided not to allocate subsidies for new investment projects and to clear former debts first.
Market participants are of the opinion that it is important to keep dairy farms’ profitability in the context of budget expenses reduction. But at the same time it is impossible to invite investments into the dairy industry without 15 years’ subsidized loans. Vladimir Labinov assured that the ministry will insist on funding increase for this kind of support. At the moment the initiative to replace one subsidy by another is not finally adopted.
