FAS marked dairy market stagnation
Dairy herd population decrease due to feed prices rise resulted in raw milk production fall and raw milk price increase. According to Federal Anti-Monopoly Service, raw milk prices in some Russian regions increased more than by 30% compared to the previous year. This has a negative impact on dairy products prices and demand. During the last two months dairy products consumption didn’t change.
Dairy herd population decrease due to feed prices rise resulted in raw milk production fall and raw milk price increase. According to Federal Anti-Monopoly Service, raw milk prices in some Russian regions increased more than by 30% compared to the previous year. This has a negative impact on dairy products prices and demand. During the last two months dairy products consumption didn’t change.
One of the main negative factors is the current system of subsidies per 1 liter of commercial raw milk allocation, which depends on milk qualitative characteristics (grade, fat and protein content). A system of interventional procurement could stabilize prices on the domestic market, believes Anna Mirochinenko, FAS representative.
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