The authorities of Bashkiria intend to stimulate producers and processors of milk to long-term contracts
Источник: The DairyNews
The dairy industry of Bashkiria, the leader of the Russian Federation for the production of milk, is experiencing a crisis; the regional Ministry of agriculture is developing measures for the transition of dairy enterprises to long-term contracts with farmers.
"The (regional) dairy market is underdeveloped, it is based on the remnants of the Soviet past, and we do not have a new development strategy, as in Europe. The Ministry of agriculture (of Bashkiria) will insist on long - term contracts - at least 3 years - between milk producers and processors", -said Deputy Prime Minister of the regional government Ilshat Fazrakhmanov at the operational meeting in the Ministry on Wednesday.
Currently, milk prices in the region and in the country are unstable, they are falling, but the "bottom has not been reached yet". "There is no understanding of the formula of pricing for raw milk, and this is a matter of individual negotiations of the parties, before the end of this year we will develop it", - said I. Fazrakhmanov.
"The state of our (Bashkir) farmers is becoming quite difficult. The price of fuels and lubricants has substantially increased; farmers lack of working capital for the carrying out of forage production. The payment for the delivered milk by the processors could be a kind of support for producers, but here we have started to accumulate debts", said I. Faizrahmanov.
The participants of the meeting admitted that the purchase price of raw milk from producers in the Republic is one of the lowest in Russia, 15-16 rubles. This forces small farms to "slaughter cattle, reducing the number."
According to the Deputy Prime Minister, an effective measure to stimulate long - term contracts between producers and processors can be "preferential loans for agricultural producers and the innovation - preferential loans for the reconstruction and modernization of the dairy plants". "The money will be seen by those who will sign long - term contracts", the Deputy Prime Minister said.
He added that at present, in addition to financial problems, the situation is aggravated by the negative information background: "Everywhere they say that milk is harmful, wrong, because there are a lot of additives, such as palm oil in it".
"The Ministry of agriculture has not been engaged in this before, but now we will have to explain that the milk produced in our territory is not harmful, but also useful and we need to launch appropriate advertising", the Deputy Prime Minister said.
Read full article in Russian on DairyNews.ru
Currently, milk prices in the region and in the country are unstable, they are falling, but the "bottom has not been reached yet". "There is no understanding of the formula of pricing for raw milk, and this is a matter of individual negotiations of the parties, before the end of this year we will develop it", - said I. Fazrakhmanov.
"The state of our (Bashkir) farmers is becoming quite difficult. The price of fuels and lubricants has substantially increased; farmers lack of working capital for the carrying out of forage production. The payment for the delivered milk by the processors could be a kind of support for producers, but here we have started to accumulate debts", said I. Faizrahmanov.
The participants of the meeting admitted that the purchase price of raw milk from producers in the Republic is one of the lowest in Russia, 15-16 rubles. This forces small farms to "slaughter cattle, reducing the number."
According to the Deputy Prime Minister, an effective measure to stimulate long - term contracts between producers and processors can be "preferential loans for agricultural producers and the innovation - preferential loans for the reconstruction and modernization of the dairy plants". "The money will be seen by those who will sign long - term contracts", the Deputy Prime Minister said.
He added that at present, in addition to financial problems, the situation is aggravated by the negative information background: "Everywhere they say that milk is harmful, wrong, because there are a lot of additives, such as palm oil in it".
"The Ministry of agriculture has not been engaged in this before, but now we will have to explain that the milk produced in our territory is not harmful, but also useful and we need to launch appropriate advertising", the Deputy Prime Minister said.
Read full article in Russian on DairyNews.ru
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