Without subsidies, the production of milk in Russia is uncompetitive

Источник: The DairyNews
The General Director of LLC "EkoNiva-Agroindustrial holding" Stefan Duerr, in his presentation at the conference "Exporters of the future in the global dairy market", noted that without subsidies, the Russian milk producers are uncompetitive compared to foreign counterparts, reports The DairyNews.
Comparing production costs of a farm in the North of Germany (400 - 1000 cows) with the costs of a modern Russian farm (2,000 cows) in Central black earth region, Stefan Duerr noted that feed costs and labor are cheaper in Russia but the depreciation of fixed assets and interest payments on loans (including subsidies) are cheaper in Germany.

"In general, the costs of producing milk on the Russian farm are about 27 cents per kg, in Germany - 30 to 32 cents per kg," said Stefan Duerr.

However, if you do not take into account subsidies, production costs for
the Russian farm will amount to 32.5 cents per kg.

"Without the investment and interest rate subsidies, the production of milk in Russia is uncompetitive on the world market," highlighted Stefan Duerr.

We’ll remind that LLC “EkoNivaAgro”, a part of the management company "EkoNiva-Agroindustrial holding" has headed a rating of the largest enterprises-producers of milk by the results of 2015. The volume of milk production at LLC “EkoNivaAgro” made 120211 tons per year.

The conference "Exporters of the future in the global dairy market" was held on November 16, 2016 in Hanover, Germany in the framework of the international exhibition EuroTier.

The organizers of the event:

The Russian Dairy Research Centre (RDRC)
DLG e.V.

The main media partner: The DairyNews
Bronze partner: Animat
Innovative partner: Dairymaster
Partner: Nita-Farm

Read more news on the EuroTier exhibition here
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