Milk price increase is inevitable in Russia – expert
According to an independent expert Tatyana Rybalova estimate, by the end of the year the price of dairy products in Russia may jump by 12-15% due to the food embargo.
She explained that because of the ban it will be necessary to replace nearly a quarter of imported products and to find suppliers from far abroad. This will mean additional costs – for new logistics systems and execution of supporting documents and certificates. Increase of domestic production will also result in additional expenses.
The price of dairy products will also be influenced by currency rate. Experts forecast further rise in the dollar, as a result cost of import from abroad will also increase. The expert also links her price increase forecast with the fact, that Russian importers of dairy products may include the losses they suffered after the embargointo the price of dairy products.
The price increase will first of all affect cheese, believes Ms. Rybalova. Russian factories are unable to replace all categories of cheese imported from France and other countries before. Cheese of mid-price segment may be replaced by domestic production and imports from Argentina, Uruguay, New Zealand and some other countries; but to find an alternative for high-class segment cheese will be impossible, believes the expert. Though it is worth noting that only 3% of Russians consume cheese of this category.
