Milk price increase not expected in Russia
Источник: The DairyNews
According to Ministry of Agriculture information, purchasing price for raw milk is steadily growing during the last several weeks. However market participants’ attitude towards the price increase is pessimistic, the price is unlikely to exceed 0.5-1 ruble, they say.
Production of ready dairy products has increased by 2-3% while the demand has decreased, according to a processor from Central Federal District. Producers do not have guaranteed price for raw milk because the country doesn’t provide itself with this product. Dairy market participants note that raw milk price in Russia has almost reached a firm level in 2015.
According to experts, current purchasing price cannot meet the producers’ demand and cover the whole production cycle. Vasily Redin, head of EEDA, estimates decrease of milk profitability by 5-10% at dairy complexes.
According to experts, current purchasing price cannot meet the producers’ demand and cover the whole production cycle. Vasily Redin, head of EEDA, estimates decrease of milk profitability by 5-10% at dairy complexes.
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