OLAM: The effect of price increase on dairy products consumption will become obvious by the New Year holidays
Russian import of SMP and butter increased as a result of 2012 drought. During the 7-month period Belarus alone increased supplies of SMP to Russia by 1.8%. This is according to Yuri Shevchuk, Olam Int. representative. Demand for SMP had spurred the price to 180-200 rubles per kg. The expert believes such a high price is sure to reduce dairy products consumption already by the New Year holidays.
“In 2010 the SMP price reached record 140 rubles. The consumption decreased, - Yuri Shevchuk gives an example. – I am not expecting a miracle to happen. I think the consumption now can’t but fall. <…> By the end of the year the price may not decrease first of all due to holiday period. But when the 10-12 off day’s period comes, the results of the prices increase will become obvious”.
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