Current situation on the CU dairy market may cause problems to local producers
If the situation on the CU dairy market is not changed, local producers will lose its share, according to EEC forecasts. In January-November 2013 period import of dairy products from non-CIS countries into Customs Union increased by 25.7% in terms of value and by 17,6% - in real terms compared to the same period of 2012. Import of curd and cheese grew by 12%, yoghurts and kefir – by 33%, butter – by 46%, milk powder and condensed milk – by 2.1 times.
According to EEC Trade Minister Andrei Slepnyov, the main reason of import increase is the deficiency of raw milk in CU countries. Among other factors – lack of investments into dairy farming sector, lack of feed and feed price growth, low milk quality, withdraw of small and medium milk processing companies from the market. By the way, reduction of Customs Union Common Customs Tariff in 2012-2013 on some dairy products within the WTO requirements implementation also contributed to import increase. Price non-competitiveness of some dairy products from CU compared to products from non-CIS countries also prompted imports. The last reason of foreign supplies growth – changes in consumers’ preference, resumed the Minister.
CU countries should take joint measures to protect its dairy market, to increase competitiveness of dairy farming and milk processing industry, said Slepnyov.
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