National Dairy Producers Union addressed the President of the Russian Federation
National Dairy Producers Union (SOUZMOLOKO – covers around 70% of Russian dairy sector) collected a block of letters from regional producers, in which the actual state of dairy sector is described and immediate measures aimed to remedy the tragic situation are offered. Copies of letters will be sent to the President Vladimir Putin, Prime Minister Dmitry Medvedev and Minister of Agriculture Nikolay Fyodorov.
More than 50 letters from 38 Russian regions contained numerous facts indicating of dairy sector crisis. Milk production cost is growing due to feed price increase, while the manufacturer’s price is not changing and has stuck at the level of end 2011 – beginning of 2012. As a result as of July 1st 2013 dairy herd population in all types of enterprises decreased by 170 thousand heads (-2% against July 2012). Volumes of milk production also decreased – by 4.6% or 729 thousand tons in first half of 2013 compared to the same period of 2012. According to market representatives, raw milk deficiency is growing, together with imports and adulteration. Market share of adulterated dairy products reaches 10% of total consumption or more than 4 mln tons.
Russia’s WTO accession also fell into line with the negative facts ruining the country’s dairy sector. Government support was cut what made the sector less competitive. Letters’ authors also indicate weakening of the investment attractiveness of the sector and first of all of dairy breeding.
It is necessary to take urgent measures to save the market, otherwise the aim to increase milk production to 38 mln tons by 2020 will become unreal, as well as the aim to cover the country’s demand in dairy products by 90%. The flow of adulterated dairy products constitute a real threat to the nation’s health. The union analyzed and structured all information contained in letters from processors and producers and prepared a list of urgent measures aimed to remedy the sector and to stop its negative development.
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