Prices for raw milk increased in Stavropol region due to drought

According to analysts of the Dairy Intelligence Agency (DIA), for the last two weeks in Russia there has been a stable increase in prices for raw milk. Stavropol region is no exception, where market participants expect a significant increase in prices due to the lack of precipitation this season, a shortage of forage crops, which affects production indicators.

According to the Director of the Stavropolsky Dairy plant, a rollback to a lower cost of milk is most likely not possible.

We will remind that on October 19, 2020 the Dairy Index DIA was 28.25 rubles/kg (excluding VAT, fat and protein content - 3.6% and 3.0%) respectively, which is 1.5% higher than last week and 7.5% higher than in October 2019. A key factor in the growth of the indicator was the increase in the import price caused by an increase in prices for exchange-traded dairy products and an increase in the share of imports in the calculation of the Dairy Index DIA. Prices for raw milk in Russian regions also continued to grow, according to the Index DIA app.

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