Kirov region lacks processing
It should be reminded that in early 2017, the Governor of Kirov region Igor Vasiliev announced plans for a large-scale increase of the production of raw milk in the region under the program "Million tons of milk". At the same time, milk production in the region is growing from year to year, including the indicator of milk production per capita, but the volume of production of dairy products is falling.
"The policy aimed at increasing the production of raw milk against the background of reducing the production of dairy products, in our opinion, is not entirely justified. The increase of milk production in Kirov region will lead to greater dependence of the region on processors from other regions and an increase in the volatility of the price of raw milk on the Russian market,- said Mikhail Mishchenko, Director of the Russian Dairy Research Center.- As part of this policy, there is a threat of further reduction of the number of cows in the region. The decline of prices for raw milk in terms of supply growth can hurt the producers of raw milk of Kirov region. In this region, it may be more effective to develop deep processing of milk and production of milk-consuming products such as cheese, butter and milk powder. Taking into account the rather advantageous position of the region in terms of logistics, with the growth of the production of dairy products it would be possible to develop export".
In 2017 the enterprises of Kirov region produced 602575 tons of milk in total, which is 6.3% more than in 2016. Agricultural enterprises increased production by 6% to 594659 tons, peasant farm holdings - by 13% to 7.9 thousand tons.
At the same time the number of producers in the region decreased, in 2017 in Kirov region there were only 12 peasant farm holdings and 189 agricultural enterprises.
Also, the number of cows decreased by 0.5% at agricultural enterprises to 84.5 thousand heads, by 53% in peasant farm holdings to 1113 heads. The average size of the farm was 426 cows.
Milk production per capita in Kirov region increased by 7% to 469.6 kg, milk consumption continued to decline and amounted to 277.5 kg per capita. At the same time, the region ranks second in the country in terms of milk consumption per capita, after Leningrad region (including St. Petersburg).
Thus, the surplus of raw milk increased by 18.9% to 246.5 thousand tons.
On the other hand, the deficit of processing capacity increased by 0.8% to 310.6 thousand tons. Kirov region continues to be one of the largest regions-exporters of raw milk. The production of dairy products in the region, in terms of milk decreased by 14% to 264.2 thousand tons in 2017.
Production of whole milk products fell by 24.5% to 162.4 thousand tons in 2017.
Production of cheese decreased by 2.8% to 2,534 tons, production of cheese products decreased by 9.7% to 1,200 tons. The volume of production of curd products decreased by 11.3% to 1322 tons, while the production of cottage cheese increased by 21.6% to 8164 tons.
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The enterprises of Kirov region produced 3727 tons of butter in 2017, which is 8.2% more than in 2016, and 1940 tons of skimmed milk powder, which is 24.7% more than during the previous year.
Production of condensed milk in 2017 decreased by 29.3% to 782.8 tons.
More information about the dynamics of development of the dairy industry in Kirov region is available on the page "Statistics by region" of the Dairy Map RDRC: http://www.dairynews.ru/company/region/kirovskaya-oblast/stat/
The Center is currently updating the indicators of development of the dairy market of Russian regions for 2017.
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