There will be a decrease in demand for dairy products, but it will be insignificant - Ildar Fayzullin

Источник: The DairyNews
General Director of Ufa city dairy plant Ildar Fayzullin said that prices for dairy products in Bashkiria for the first 4 months of 2021 increased slightly, writes The DairyNews.

‘In Bashkiria, since the beginning of the year, prices have been growing by about 1% per month. According to Bashstat, in January-April, prices increased by 3.9% for food products. The biggest growth is shown by fruit and vegetable products - 13.2%, as well as meat products - 5.6% and cereals - 5.1%. Prices for milk and dairy products have increased by 1% in 4 months,’ the expert said.

At the same time, he noted that, according to Bashstat, the real monetary income of the population for January-March 2021 decreased by 5.5%. According to Ildar Fayzullin, this situation is reflected in the decline in demand. At the same time, the expert believes that the decline in demand for basic food products, including dairy products, will be insignificant.

‘When the level of income decreases, there is a natural redistribution of demand in favor of products with a lower price. I am sure that the government is working in the direction of restraining sharp price hikes for groups of goods,’ Ildar Fayzullin said.

He stressed that the government also needs to work in the field of restraining energy prices, the prices of which, according to the expert, have been constantly rising recently, which has an impact on the growth of the cost of finished products.

At the same time, Ildar Fayzullin believes that manufacturers in such a situation need to work on reducing costs without harming the quality of products.

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