Between the consumer and the state: how taste preferences, trade wars and other global trends change the dairy market
The main industry trends of the past year, according to the Director of RDRC Mikhail Mishchenko, were the tightening trade wars, in particular, between the key players of the global market: the US and China. In 2017 exports of dairy products from the US to China approached $ 600 million. However, in response to the restrictive measures of the US authorities against exports from China, the latter increased tariffs on American skim milk powder, whey and cheese. In just four months, from July to October 2018, the value of exports of dairy products from the US to China fell by a quarter and this, according to many experts, will inevitably put pressure on the markets of other countries and regions in the coming years.
Participants of the Dairy Olympics will be able to learn firsthand the US position on this issue: Mark Beck, Executive Vice President of the US Export Council (USDE), will make a report "American ambitions in the dairy market: what the United States wants". Other experts will also talk about various examples of state regulation of the dairy industry: Alexey Bogdanov, Head of the Main Department of foreign trade of the Ministry of agriculture of the Republic of Belarus, Nikola Grushkova, adviser on agricultural issues of the Embassy of the Czech Republic, Susan Kilsby, senior analyst of the research Agency NZX AgriHQ (New Zealand), experts from Japan, China and other countries.
Among other things, they will pay attention to the second sector, where the role of the state is especially great: the development of transport and logistics infrastructure, including ports and railways. Under the conditions of globalization, effective access to the supply of raw materials and equipment as a means of minimizing costs and to export markets – to maximize revenues - is a key element in ensuring the competitiveness of the dairy industry.
On the part of consumers the world dairy market, as noted by experts of the RDRC, is influenced by two trends: changing preferences towards food products of plant and not animal origin, as well as increasing demand for goods of cheaper price segments. Both of these trends lead to an increasingly active replacement of dairy fats and proteins with vegetable ones. For example, the German Association of farmers associated the last year's drop of milk consumption in Germany by 3% with the switching of consumers to juices and cocktails. Within the framework of the event in St. Petersburg, a special expert discussion will be devoted to effective strategies for the development of the dairy business: "Milk producer in defense of milk – strategies for the promotion of milk and dairy products".
Special attention will be paid to the issues of unfair competition, as the problem of growth in the volume of falsified dairy products is becoming more acute in Russia. According to the Rosselkhoznadzor, at the beginning of this year the products of ten out of ten tested consignments in Sakhalin region were found to be of poor quality. In Yamalo-Nenets Autonomous district, Astrakhan and Murmansk oblasts, Khanty-Mansi Autonomous district this figure amounted to 73.4%, 71.9%, 60.71% and 59.65%, respectively. The Director of the RDRC Mikhail Mishchenko will tell about the modern objective realities of milk and dairy products consumption.
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Irina Solomina, +7(968)926-18-39, is@dairynews.ru
Margarita Zaporenko, +7(903)964-11-52, mz@dairynews.ru
Anastasia Fedotova, +7 (906) 034-44-27, af@dairynews.ru
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