As soon as labeling is launched, milk will begin to be poured "into the ravine" - Vladimir Osipov
‘As soon as mandatory labeling of dairy products is launched, milk will begin to be poured "into the ravine". Companies that are not ready for labeling will stop accepting it, which will create surpluses. The collective farmers will start slaughtering the cattle,’ the expert said.
In his opinion, the market will be balanced only when the range of dairy products decreases and their consumption decreases. At the same time, Vladimir Osipov believes that the prices of goods on the shelf will increase in proportion to the slaughtered cattle.
Thus, according to the expert, not only to the costs of producers on the cost of labeling, equipping enterprises, increasing staff for its needs and losses from unreadable codes and refunds will contribute to the increase in prices, but also the shortage of milk provoked by labeling.
Vladimir Osipov noted that, according to industry representatives, one of the main goals of labeling dairy products is the elimination of small and medium-sized, often regional enterprises. According to the expert, the promised subsidies will not reach the production facilities that are geographically remote from the center and have only a micro-share of the production market.
‘Probably, according to the calculations of the representative of the Research Financial Institute Ms. Rykova, who once a year makes ambivalent calculations either about the benefits or harm of labeling, taking into account the introduction of criminal liability for the turnover of unlabeled dairy products, it is beneficial for the state to build several new prisons in which they will put dairy farmers and sellers from the gray zone, for example, sellers from markets, who are easy to catch. Subsequently, there will also be released personnel of collective farms and dairy processing plants, remote from major cities, which, due to the loss of job, will add to either psychiatric, or drug treatment, or criminal statistics,’ said Vladimir Osipov.
we remind, previously, Head of the Center for Macroeconomic Research of the Research Financial Institute of the Ministry of Finance of the Russian Federation (RFI of the Ministry of Finance of the Russian Federation) Inna Rykova stated that the labeling of dairy products is appropriate and will not lead to various negative consequences.We also wrote earlier that the cost of labeling would affect the price of the final product.