PepsiCo facing milk powder deficiency since February
Russia needs to import dried milk products, believe milk processors. One of the Russian market leaders PepsoCo was short of milk powder already in February. It addressed Arkady Dvorkovich, Deputy Prime Minister of the Russian Federation, with a request to provide the market with necessary volumes of imported raw materials. The letter addressed to the official was signed by Silviu Popovici, Managing Director in Russia.
The company distinguishes three main problems of running a dairy business in Russia: nontransparent system of subsidies allocation per 1 kg of commercial milk, compulsory veterinary certification of ready (processed) dairy products and limited supply of strategic raw materials for the dairy industry in Russia (WMP, SMP and butter).
According to other market participants, domestic production of WMP, SMP and butter is not enough to provide the market demand. With closed borders Russia has two ways – either to import ready products from abroad or to import raw materials and give local producers a possibility to work, said Anatoly Losev, Molvest General Director. Import of milk powder is not the best alternative, but at the moment is the best way to solve the problem. Otherwise dairy products prices may increase by 30%, the demand – decrease.
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