GC Losevo: Dairy products will remain in the consumer basket in any case

The company notes that the beginning of self-isolation was accompanied by a sharp chaotic increase in demand, but in the summer this season, the drop in consumption was more than usual.

- In general, it is too early to talk about a complete change in consumption, the pandemic redistributes demand, and it is not yet possible to say whether it will change the picture radically. Dairy products will remain in the consumer basket in any case, - stated in the press service of the organization.

GC Losevo noted that the most popular dairy products among consumers are milk, cottage cheese, sour cream and butter. They are always in demand and the change in consumption is only related to the number of purchases and the quality of products. In the face of uncertainty and loss of revenue, everyone chooses an "affordable" product, said in the organization.

Purchasing power is most affected by economic factors. 

- Solvency is constantly falling, income is not growing. People are psychologically ready to save on everyday goods, we see this in the trends in retail and the emphasis on the development of the model of hard discounters, - said in GC Losevo.

As for the increase in the cost of raw materials, according to experts, prices for them grow annually, constantly outstripping inflation. Changes are affected by the cost of feed and fuel, as well as the exchange rate. This year, due to the impact of the pandemic on the economy, growth was recorded more than usual.

The press service of GC Losevo added that sooner or later this will affect either the shelf or the quality of goods. Some manufacturers keep prices at their own expense, while others immediately raise them using open or hidden downsizing.

- This is all subject to maintaining the quality. However, of course, in this situation, it is easier for many producers to start saving on raw materials, replacing raw milk with milk powder. We try to raise prices very rarely, but we initially have a high cost, we use raw milk of the highest quality, it is important for us to keep the retail price affordable to the buyer and increase production volumes, which also allows us to reduce the cost by reducing overhead costs. A normal general practice is a small annual increase in prices, stressed in the press service of the company.

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