Farmers' share in milk production will grow - Rosselkhozbank
Due to this, peasant farm holdings will be able to maintain and even increase their share in the milk production segment, which by the end of 2019 was estimated at 9% in Russia as a whole, said Andrey Dalnov, Head of the Center for industry expertise, during the online conference "Dairy sessions: 9.1». According to him, investment activity remains high in the dairy industry as a whole, and new major players are entering the milk processing market.
‘Today, the milk market has reached a high level of maturity. With the support of the state and the Rosselkhozbank, the production of milk and processed products is growing. Now we see a tendency for large producers to enter a more marginal segment of milk processing and create vertically integrated full-cycle complexes. In the future, this will increase competition between processors for resources,’ explained Andrey Dalnov.
This trend will be most characteristic for Western Siberia, where processing capacity has the potential to grow by about 600 thousand tons by the end of 2021.
Increased competition in milk processing can potentially lead to an increase in concentration in this segment. The expansion of federal retail chains can strengthen this trend. According to industry associations, large food retailers accounted for 33% of food retail turnover by the beginning of 2020. It is expected that this share will increase, primarily due to the increased presence in the regions of Russia located to the East of the Urals.
According to the expert, these trends open up opportunities for preserving and increasing the share of peasant farm holdings in the structure of commercial milk production. Over the past decade, milk production has doubled on peasant farm holdings.
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