The margin on dairy products is higher than 100% only in the premium segment - Ministry of Industry and Trade
‘It should be noted that for premium types of dairy products, the margin in trade can really reach 100% or more. At the same time, a large part of the assortment of all dairy products produced is included into the list of socially significant ones. And for this group, high trade margins do not apply,’ the report says.
As the deputy minister noted, dairy products are the most in demand, and almost every buyer leaves the store with a purchase from the dairy assortment, so retail operators are forced to keep a low margin on these products, damping the manufacturer's purchase price.
Earlier it became known that the Dairy Union of Russia appealed to the government of the Russian Federation and the Federal Antimonopoly Service with a request to take measures in connection with high margins on dairy products in federal retail chains. ‘As for the position of the Dairy Union of Russia, it is certainly their right to apply to the FAS of Russia. Competent specialists work in the FAS, they will conduct an inspection and figure out what the situation really is,’ Yevtukhov said.
He also added that representatives of trade in general are reluctant to increase prices due to the fact that low prices are their competitive advantage. Yevtukhov added that, according to Rosstat, the average trade margin for socially significant food products in retail trade is 16.5%. ‘Retail chains are trying not to raise prices for socially significant food products. Some chains set zero and even negative trade margins on food products at the expense of their own margin, since a lower final price for socially important goods and food helps to win a tough competition for consumer traffic,’ he concluded.
