Konstantin Sukharev: reducing the consumption of dairy products will lead to lower prices

According to Konstantin Sukharev, this assumption is due to a stable economic rule, according to which the higher the price rise, the greater the rebound in product prices.

‘As soon as people further reduce their consumption of dairy products, dairy producers will be forced to make a rebound in the opposite direction. In practice, we have seen a stable rule for many years: the higher the price rise, the greater the rebound,’ shared his opinion with The DairyNews the Head of the Pyatigorsky dairy plant.

He also noted that the current economic situation is atypical, complex and indirect, but there are certain economic laws that can be used to predict future developments.

Konstantin Sukharev noted that there is a limit to purchasing power in the market.

To date, Russia has seen a steady decline in the income of the Russian population, which has continued for several years. Household incomes fell even more in 2020, due to the economic crisis caused by the coronavirus pandemic and restrictions imposed, as well as the situation in the currency market. As a result, customers save on everything. The number of people living below the poverty line has also increased. Therefore, any increase in prices is always limited by demand.

According to the Director of the dairy plant, today's prices for dairy products are leveled by processing: prices for raw materials increased, processing enterprises took part of the costs and reflected these costs on retail shelves.

Also, as proof of the deplorable situation with the incomes of the Russian population, Konstantin Sukharev referred to the material of RBC, according to which two-thirds of young families (64%) cannot afford durable goods.

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