Anatoly Losev: Since December 2020, the profitability of the dairy industry has decreased three times

‘The current year is difficult for the dairy industry. Since December 2020, profitability has decreased almost threefold and continues to decline. At the same time, the cost of production is growing due to an increase in world prices for the cost of raw materials, packaging, mixed feed, fuel and lubricants and veterinary drugs. For example, the cost of raw milk has increased to 10% over the past year, sugar - by 67%, corrugated cardboard - by 67%. The introduction of two stages of mandatory labeling of dairy products (since June 1 and September 1) also led to a drop in profitability. The costs of its introduction (purchase of equipment, codes, recruitment of additional personnel, etc.) will reduce the revenues of companies by at least 25%,’ commented Anatoly Losev.

As a result, the expert concluded, taking into account all these factors, dairy farming loses its investment attractiveness:

‘In addition, many enterprises have carried out reconstruction, so the industry is heavily credited, taking into account all the above factors, I assume that not all companies will be able to pay back loans and this will lead to sad consequences - bankruptcies.

Anatoly Losev also shared information about the priority sales regions for the group of companies in the foreign market:

‘As for exports, we have been actively developing this direction since last year. We supply whole-milk products (ultra-pasteurized cheeses, yoghurts, butter, cheeses, cream) to the near abroad - these are Kazakhstan, Azerbaijan, Georgia, Armenia and Uzbekistan. In addition, since the beginning of this year, we have started exporting powdered whey permeate to China. These products are in demand mainly by the confectionery industry. For us, in general, the Southeast Asian market is interesting from the point of view of exporting dry milk ingredients.