Andrey Danilenko of Soyuzmoloko on the current state of dairy in Russia

Andrey Danilenko, Board Chairman of the National Union of Milk Producers “Soyuzmoloko” during the press conference on the development of Russian dairy, provided his view on the current state of the dairy market in the country.

“We live not in vacuum, but in global space and market. In 2014, when Russia restricted imports, it began a fairly active restructuring of the dairy market. Before imports were 50/50 – Belarus / far abroad countries. Agrarians were set the task to increase production. So, the state significantly strengthened state support. Over these years, Belarus has become the main importer in the history of the Russian Federation, more than 90% of imported dairy come from the territory of Belarus. We see a large flow of dairy products (or products under different codes) that come from the territory of Ukraine, Poland and other countries, because by law it is possible to supply processed products, raw materials for which were purchased in the sanctions countries”.

“Prices have risen sharply since 2014, we also saw a drop in demand for dairy products. Anyway, I would like to clarify that technical regulations have long existed, and there is the separation in two types of products – dairy and milk containing products (with up to 50% of vegetable fats). Our consumer, saving his resources, has increased consumption of products with vegetable fats and substitutes by more than 30% simply because they are more affordable. What has happened since the beginning of the year: amendments to the technical regulations have been made, by the way, thanks to the Ministry. Since July 16, Russia will require more readable labeling, so that the consumer can choose consciously. The problem with deception of consumers has existed for a long time, there is a list of those who were caught, on the website of Rospotrebnadzor, but the fines for violators are 50-100 thousand rubles, and it is only possible to get a legal solution on the matter within one and a half years. The big problem is that there are no serious consequences for the falsification. ”

“What we can see on the market today – our own production has grown, demand has fallen, and the main supplier operates in the same economic space with us. Producers found themselves in a difficult situation. The government stimulated production of milk. But then our producers find out that the niche is already occupied by the neighbors. In Russia, prices for milk are different – there are regions in the Central Federal District and in the South, where the fall is not so noticeable, but the average statistics is as follows:
The average lowest price in summer is 23 rubles.
The average lowest price now is 21.30 rubles. ”


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