There are many unsolved problems in milk production and processing, in prospects of foreign trade.
EU milk deliveries increased by 5.5% in November, the highest monthly increase in 2015, according to latest data from the Milk Market Observatory (MMO).
The market of dairy commodities reached ceiling in Russia.
51 per cent of Russians have cut their food spending. This data has been provided by the survey performed by the Public Opinion Fund.
In the end of January some traders decided to sell out the products at lowered prices.
The situation became aggravated for Russian traders/operators. They have two problems now: devaluation which makes import noncompetitive (even from Belarus), and deficiency of means.
Russian dairy market entered this year with many problems: high rate of inflation, ruble devaluation, growth of credit rates, etc. Now the situation is aggravated, and forecasts for the current year force operators to lay essential risks in production and processing.
Russian economic problems affect Belarus, therefore this year will also be heavy for it. Devaluation of Russian ruble influences Belarusian currency which is dependent on exchange rate in neighbor country.
Because of limited import of dairy products, an increased demand is still felt on the market of raw milk.
The current Russian embargo on countries in the EU and other nations has been discussed thoroughly in the industry as it has been placing downward pressure on global wholesale prices.