Mikhail Mishchenko: The main reason for the high cost of milk is a large import component in the industry

Источник: The DairyNews
Director of the Dairy Intelligence Agency (DIA) Mikhail Mishchenko said that the cost of production of dairy products is growing, reports The DairyNews.

According to the analyst, this is due to a number of factors. First of all, this is the high cost of money, including loans, for most market participants, because concessional lending is not available to everyone. The second thing is the constant increase in prices for the products of natural monopolies. This includes an increase in the cost of energy, fuel, electricity, and so on. The third – there is a very large import component in the industry.

- This applies to equipment, and in most cases; seeds, feed additives and veterinary drugs. Their rise in price is due to the ruble exchange rate, and it is constantly falling in our country. This year, we have seen several quite significant drops in the exchange rate, which, accordingly, negatively affected the cost of dairy products, - Mikhail Mishchenko concluded.

We will remind that on December 7, 2020 Dairy Index DIA amounted to 28.38 rubles (about 0.32 euros)/kg (excluding VAT, fat and protein content 3.6% and 3.0% respectively), which is 0.07% higher than last week and 6.09% higher than in early December 2019. According to the Index DIA app, the key factor in the growth of the indicator was the continued increase in prices for raw milk in Russian regions. The import price increased slightly last week due to increase in prices for some exchange-traded dairy products and the weakening of the ruble.

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