The increase in prices for dairy products in the south of Russia may amount to 10-12% - Konstantin Sinetsky

‘First of all, it will affect a certain category of goods - milk, kefir, sour cream,’ Mr. Sinetsky said. At the same time, he stressed that in order dairy producers were able to return at least to the indicators of 2019 in terms of profitability, growth should be at least 25-30%.’

On November 3, the Ministry of Agriculture of the Russian Federation warned of an increase in prices for dairy products. The department notes that the increase in the cost of production for all types of livestock and dairy products is due to the rise in price of feed and feed additives for livestock, as well as packaging and fuel and lubricants. In addition, producers incur huge costs due to the introduction of mandatory labeling of dairy products since September 1, 2021.

According to Konstantin Sinetsky, the additional costs of Kuban manufacturers for the purchase and implementation of equipment for its application will amount to 1.5 billion rubles, and they will have to spend another 1.1 billion rubles annually on the purchase of labeling codes.

According to the Ministry of Agriculture, the cost of raw milk from producers was 27.6 rubles/kg (+7.7% per year), pasteurized - 49.1 rubles /kg (+7.9%), butter - 526.3 rubles/kg (+5.9%), cheese - 391.5 rubles /kg (+4.1%). The press service of the department also noted that manufacturers have been holding back the "explosive" growth of production costs all year. The Ministry of Agriculture plans to send 10 billion rubles of subsidies to companies to compensate for the cost of more expensive livestock feed.