Soyuzmoloko: According to the results of 2021, the increase in raw milk production will amount to 200 thousand tons

She called 2021 "very difficult" for the dairy industry: there were many negative factors that affected the cost of production of milk and dairy products. As a result, the key milk producing regions showed negative dynamics.

‘We do not expect a large increase in milk production, by the end of this year it will be 200 thousand tons, that is, we expect some stagnation in the industry, no matter how sad it may sound,’ the speaker stressed. ‘The increase in the cost of milk production and processing negatively affected the profitability of the entire sector. All market participants are very concerned about how they will live on.’

According to the expert's forecasts, the average regional players will leave the market, which was confirmed by the recent closure of LLC Ivmolokoprodukt in Ivanovo region. Dairy plants are also closing in the north of Russia.

‘And this, of course, is the result of both an increase in the cost of production and a decrease in the purchasing power of the population,’ commented Maria Zhebit. ‘The industry is also experiencing an increased administrative burden: labeling was introduced this year, it is planned to increase the recycling fee, there are other factors.’

According to the speaker, it will be "easier" in this situation only for strong players who will take over the share of sales due to the closure of dairy plants.

‘We can't say that everything is so pessimistic for everyone: hard times are coming for uncompetitive industries,’ the expert concluded. ‘Therefore, we need to look for opportunities for transactions – mergers, acquisitions, attracting investors, upgrading factories in order to reach a new level and continue to work smoothly.