SRO in Russian dairy sector – utopia or reality?
Creation of a self-regulatory organization (SRO) in the Russian dairy sector – utopia or hard to achieve reality?
The majority of Russian dairy market participants took the initiative of the National Dairy Producers Union (SOUZMOLOKO) to create a self-regulatory organization with suspicion. The initiative was launched within the Dairy Sector Development Program 2020 draft, its discussion started in the beginning of July 2014. The new body’s aim is supposed to include monitoring and analyzing of the pricing scheme, determination of milk and dairy products minimal prices, struggle with counterfeit and defective products, social advertising of milk, education programs for dairy market participants, cooperation with banks, government commodity interventions coordination.
By the example of self-regulatory organizations in other sectors, such a scheme assumes that the participants will have to grant certain fees – as experts expect, the amount of this fee may reach 0.1-0.2 rubles from a liter of milk. This fact makes the market players doubt, as it appears from The DairyNews inquiry.
“Creation of SRO is the right way of dairy sector development, which is used in many countries, - says Marina Balabanova, Danone representative. – We know a perfect example of SRO in French dairy sector, where lots of important questions are solved via this organization, not the government”. Though Yelena Stafeyeva from Ural Livestock Farmers Union believes, this idea is comparable with utopia taking into account country’s size and certain dairy business conductions.
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