The dairy industry faces an alarming future -Konstantin Sinetsky

Источник: The DairyNews
General Director of the Southern Dairy Union Konstantin Sinetsky said that the experts of the organization predict an alarming situation in the dairy industry in the near future, writes The DairyNews.

The expert noted that currently the President and the Government of the Russian Federation pay special attention to regulating prices for essential products. These include dairy products, the level of consumption of which, according to Konstantin Sinetsky, is almost twice as low as recommended by the Ministry of Health of the Russian Federation and the Institute of Nutrition.              

‘At the same time, our concerns are based on the fact that today the price of raw milk is significantly increasing, which will directly affect the cost of finished products. The cost of raw milk for the first time exceeded the mark of 29 rubles/kg. At the same time, numerous state initiatives are being put into effect in the industry, which require huge financial investments from enterprises, which will significantly affect the cost of production. These are the state information system "Mercury" of the Rosselkhoznadzor, the mandatory digital labeling of the Ministry of Industry and Trade, changes in the legislation on sanitary protection zones of enterprises, new environmental requirements, changes in TR CU 021 in terms of rationing about a hundred antibiotics, comprehensive pressure from control and supervisory agencies, etc. All this is happening against the background of inflation (according to Rosstat for 2019, 4.9%), the devaluation of the Russian currency and a decrease in the purchasing power of the population. As a result, we will see a significantly higher price of dairy products in the trading halls and a buyer who is simply not able to buy them in the same volumes as before,’ said Konstantin Sinetsky.

He noted that in this regard, most likely, the demand for dairy products will significantly decrease.

‘Experts of the Union draw attention to the fact that we have already seen a similar situation in the spring of 2018, when the volume of inventories in the warehouses of dairy processing enterprises in Krasnodar region significantly exceeded 2 billion rubles, and regional retail chains could not cope with the sale of products due to a drop in consumer demand. A whole chain mechanism is launched: expensive raw materials – expensive products that are not sold – accumulation of residues in the warehouses of enterprises - restriction on the purchase of raw milk – an overabundance of raw milk – lowering the cost of raw milk – dissatisfaction of milk producers who have nothing to pay for loans, and who do not have the opportunity to fulfill obligations under previously received subsidies, - said the General Director of the Southern Dairy Union.

Konstantin Sinetsky said that in the current situation, it is very important to be ahead of the curve, comprehensively stimulating the development of the dairy industry, which needs the support of the state, and not the creation of additional administrative barriers. In his opinion, the unsolved problem may lead to the fact that the population will be forced to engage in subsistence farming and refuse to purchase dairy products of industrial production.

‘The Southern Dairy Union expresses hope that our forecast will not be confirmed, and the authorities will react to the situation in a timely and proper manner, without causing damage to the dairy industry,’ Konstantin Sinetsky concluded.

13.05.2021
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