The Ministry of Agriculture does not expect significant fluctuations in prices for dairy products

Источник: The DairyNews
The Ministry of Agriculture does not expect significant fluctuations in prices for dairy products caused by the eco-fee, reported in the press service of the department to The DairyNews.

The production of raw milk in our country has been growing steadily in recent years. At the end of 2020, it reached 32.2 million tons, and this year the figure will be at least 32.6 million tons. The increase in volumes also stimulates the growth of the output of finished dairy products. Thus, industrial production of packaged milk in January-February amounted to 917 thousand tons, which is 2.7% higher than in the same period in 2020. According to the forecast of the Ministry of Agriculture of Russia, this will make it possible to meet the target of the Food Safety Doctrine for the provision of milk and dairy products (90%) by 2027.

A set of measures of state support for the dairy industry contributes to the positive dynamics. Producers receive appropriate subsidies, concessional loans, reimbursement of part of capital expenditures, and grants. At the same time, it is worth noting that in 2020, more funds were allocated by the regions to increase milk production than in previous periods. This also indicates the prospects and investment attractiveness of this area.

Taking into account the stable situation in the dairy market, the Ministry of Agriculture of Russia does not expect significant fluctuations in prices for these products in 2021. It is worth noting that over the past year, the dynamics were comparable to the level of inflation. Thus, as of March 24, the producer price for raw milk was 26.7 rubles/kg (+4% compared to the same period last year), pasteurized milk 3.2% - 46.8 rubles/kg (+3.5%), whole milk powder - 257.1 rubles/kg (+2.8%), butter 82.5% - 507.8 rubles/kg (+1.1%), hard and soft cheeses - 386.5 rubles/kg (+4.8%).

A number of measures that are already being implemented and are being worked out will allow us to maintain the necessary level of profitability of the industry's enterprises in the long term, support their financial stability and ensure an affordable level of prices for dairy products for the population. Thus, the application of measures of customs and tariff regulation of grain exports contributes to reducing the costs of milk producers for the purchase of feed. To minimize the costs of enterprises associated with the labeling of dairy products, it will be possible to compensate for the costs incurred, as well as preferential investment loans and leasing for the purchase of labeling equipment, preferential "short" loans for its maintenance, purchase and application of codes. These measures are currently being worked out by the Ministry of Agriculture, including the ones in cooperation with the Ministry of Finance.

Earlier, we reported that the industry warned about the rise in the price of milk due to the eco-fee.

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28.07.2021
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