Decline of the prices for commodity products is stopped in Russia

There is process of inflation in Russia now. Purchasing capacity is declined. All these are resulted in decrease of consumption of dairy products in the country.

According to Russian Statistics Committee, inflation made 0.9% in Russia last month, and prices for food increased by 1.5%, though prices for raw milk and dairy products in large wholesale were considerably declined, especially in April-May.

Decline of the prices for commodity products was stopped in the beginning of June. There were a few reasons. First of all, there was an influence of information about beginning of purchases by Russian Reserve on butter market. Additionally the information appeared about beginning of formation of stabilization fund in Belarus, which have to reduce stocks of butter (basically) and milk powder (possibly).

Secondly, officials use favorite lever for influencing – “protection of home producer”, restricting import from some foreign plants, or from whole countries.

The second, you might say the political, lever is especially effective, when demand decreases and the prices decline in the country.


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