Artem Belov: Regulation should not drive business into conditions in which it cannot develop freely

The expert noted that 2021 was in many ways a turning point for the dairy industry:

‘We have moved from the paradigm of import substitution to the export paradigm. At the same time, over the past year, the number of state initiatives that affect the economy of production has increased by a multiple. These are attempts to control prices, positions related to the environment: not distributed over time, but those that need to be implemented here and now. And these questions are correct, but they should not drive business into conditions in which it cannot develop freely,’ Artem Belov stressed.

The specific economic situation inside the country has made it worse. Raw materials, feed, veterinary medicines, breeding material, packaging, even pallets have become more expensive – which means that profitability in all key industries, both in production and processing, is decreasing. In such conditions, riskier investors can stay, and more conservative ones can leave, and agriculture is the territory of conservative investors, Artem Belov stressed. A possible point of growth, exports, also faced its limitations, the expert added.

Speaking about the forecast for 2022, the CEO of Soyuzmoloko suggested that the year would be difficult, it could become the basis for further growth:

‘After 2014, production of raw materials grew well, we reduced imports, and our exports increased. In 2021, we see that profitability is declining, and regulation is seriously strengthening. I hope that in 2022, through the joint efforts of business and the state, it will be possible to find a solution and bring the industry to a new level.’