The Ministry of Agriculture announced the stability of milk prices

‘This year, there is an increase in the cost of raw milk production due to the increase in the cost of feed, which accounts for 45% in the cost structure, as well as an increase in tariffs for energy resources, fuel, labor remuneration,’ the ministry points out.

‘At the same time, selling prices for raw milk and dairy products remain at a stable level — over the past year, their growth in price is comparable to the level of inflation,’ the report says.

To support the enterprises of the industry, the government of the Russian Federation, as the Ministry of Agriculture reminds, has taken a set of measures that, among other things, allow reducing the costs of producers. In particular, the application of customs and tariff measures to regulate the grain market contributed to a reduction in the cost of feed. Livestock breeders can receive preferential short-term loans for the purchase of veterinary drugs and feed, as well as preferential investment loans for the construction, reconstruction, modernization and technical re-equipment of farms, acceptance points, and primary milk processing.

‘There are also such support measures as compensation for part of the direct costs incurred for the construction and modernization of dairy livestock complexes (CAPEX), subsidies for milk production, grants to small businesses for the development of dairy production, compensation for part of the costs of paying loans on investment loans received before 2017, export duties on milk powder, support for milk processing,’ the agency points out.

In general, in January-May 2021, milk production increased by 1.6% compared to the same period last year. ‘The Ministry of Agriculture expects further production growth and expects that in 2021 the final figure will be at least 32.6 million tons,’ the ministry concludes.