Reorganization in connection with trade sanctions continues on Russian dairy market. 

But switching to import from Latin America not as easy as Russian authorities sounded. It is impossible to reorient commodity streams quickly. After all Argentina, Uruguay or Chile didn’t keep products for a case of trade wars of Russia. So, suppliers agree to increase export to Russia only at considerable increased prices and it is impossible to supply the products urgently.

Only Belarus gains from sanctions of Russia. Demand for Belarusian products has sharply grown. At the same time there are no additional volumes of raw milk for processing.

The situation is the same in Russia. Statements of the Deputy Prime Minister of Russia A. Dvorkovich about increase of milk processing are optimistic, but do not correspond to reality. After all, it is impossible to increase production of milk for one month even if big money is allocated.

Therefore the prices of dairy products are growing in Russia. It is good thing the government didn’t support the initiative of communists about state control of prices. Participants of the market will control them by signing of memorandums. It means the prices will be formed by market.

Source: infagro.com.ua