Milk price is increased to RUB 22/kg in Russia

Russian dairy market is growing on the eve of winter season. After growth of prices for commodity dairy products, activation of raw milk market followed in the second half of October.

According to operators, growth of prices for milk is not connected with its shortage, but with autumn speculative agiotage on the market (first of all butter and whey powder). Therefore processors have to increase the bottom prices to market average level.

In the end of October the average milk price makes RUB 20-24/kg in Russia. Milk solids, content of which are at seasonally high level now, also make a certain impact on growth of prices.

The official figures on milk production in January-September showed the decline at 0.3% to 24.172 mio t in the Russian Federation. At the same time the production of milk in agricultural enterprises showed positive dynamics – it grew by 2% to 11.331 mio t.

Cardinal changes are not expected on the market in the near future: producers and processors will rise the prices further, and Russian buyers will prefer cheaper products.

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