Russian milk producers are significantly affected by the exchange rate - Alexander Kostikov
- The share of costs linked to the currency is very large. This is equipment maintenance, packaging material, and so on, he said. - We see a 15-20% devaluation of the ruble this year, and it puts very serious pressure on the cost. There is also a reverse trend – a reduction in income for consumers. However, while milk, in principle, feels normal, at least the basic line of dairy products. However, in terms of more complex value-added products, which include yoghurts, desserts, and so on, the situation is worse.
According to Alexander Kostikov, this is due to the lack of funds from the consumer.
- Consumption of such products per capita is much lower than in Eastern Europe, Poland, and Turkey. In other words, there is a potential for growth, but for its implementation, it is necessary that the consumer has money, - the expert concluded. – However, it is still unclear how the further situation with lockdowns and other downturns will develop. It is worth noting that in such a situation, it is always very important what additional costs fall on the business or vice versa: what makes it easier for a business to exist.
Alexander Kostikov also noted that many discussions are developing around the upcoming introduction of labeling of dairy products, but one thing is obvious: it will entail huge costs, which will fall first on the manufacturer, and then on the consumer.
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