The milk cost index resumed growth in April
The main driver of cost growth is currently the devaluation of the ruble and the subsequent rise in price of a number of cost items, mainly with a high import component. In April, all cost items included in the cost model increased, with the exception of energy resources (electricity and diesel fuel). The most significant increase in costs is for feed and mineral fertilizers, medical and veterinary drugs, and disinfectants.
The increase in production costs in April is the first increase at the beginning of this year after a steady decline during the first quarter. According to updated data, in January 2020, the operating cost of raw milk production decreased by 3.1% for the month, in February – by 1.1%, in March – by 0.2%.
In comparison with the beginning of 2017, the cost of milk production in April 2020 remained, according to preliminary data, 14.0% higher, in March, according to updated data, – 13.0% higher. If we compare the dynamics for the year, the growth since April 2019 was about 3.5%.
The main drivers of cost growth in recent years have been wages, feed, devaluation of the national currency and general inflation.
At the same time, as experts of the Union point out, the average purchase prices for raw milk have increased to a lesser extent since 2017 – by only 2.8%. However, according to Rosstat, in April 2020, the price per liter of commercial milk was 26.1 rubles / kg without VAT, which corresponds to the historical maximum for this month. Before that, the highest value of the price level in April was reached in 2017, when the average price for raw milk was 25.2 rubles/kg.
The next round of devaluation of the national currency in March 2020 contributes to the growth of costs for imported goods, which is reflected in the increase in the corresponding cost items in the cost of milk production as imported goods are involved in production at a higher price. The analysis showed that a part of the goods with a significant share of foreign exchange costs in the cost price is involved in the production process within 1 to 2 months (for example, it is the cost of veterinary drugs and medicines, disinfectants, spare parts, etc. other categories of goods are attributed to the cost of production over a longer period (depreciation of equipment, livestock).
Цитаты дня
