Will there be a collapse in the dairy industry with the transition to an electronic system of veterinary certification?
Market participants and experts generally agree that such a system is necessary. But, despite the fact that the terms of connection to “Mercury” have been repeatedly postponed, not all enterprises are ready to connect to it. Because of this, some experts predict an increase in prices for dairy products and even interruptions in delivery to retail chains.
The National Union of milk producers is cautious with comments, referring to the fact that the situation is now being discussed by a special working group under the Ministry of agriculture of the Russian Federation, which includes representatives of more than 20 companies. Meanwhile, some skeptics emphasize that many outlets, especially small ones, are not ready for “Mercury” in principle, and the system itself has significant drawbacks that are difficult to eliminate in a short time.
The authorities believe that this is slyness. The transition to electronic certification was announced in advance, and all manufacturers had time to prepare. And the reluctance to join the system can be seen as an attempt to get away from control.
- Already now, many manufacturers prepare documents in electronic form. In April 2019 more than 3.5 million electronic certificates were issued. The certification involves almost six thousand manufacturers of dairy products, - said chief veterinarian of Russia Nikolay Vlasov in an interview with "RG".
"The talk that the dairy market may collapse because of this is held not the first year and is estimated by the service as groundless. There are no big difficulties with the introduction of electronic veterinary certification in technical terms", believe in the veterinary service of Rostov region.
In April 2019 the regional veterinary service began to issue certificates on veterinary and sanitary well-being on dairy farms owned by owners of personal subsidiary and peasant farms, individual entrepreneurs and legal entities. On average, about 3500 electronic veterinary accompanying documents for raw milk are issued every day in the region.
- Some still predict the collapse of the dairy industry because of “Mercury”. It is worth noting that the system works perfectly in the chain from the farm to the shop. Of course, we have our own specifics: short shipment time and perishable products. But there was time to prepare, and everyone who really wanted had time to do it, - says the Head of the Sales Department of the dairy plant in Rostov region Elena Velichko. - A few months ago, we conducted testing and identified certain difficulties. We have provided a separate workplace for the veterinarian, and still we couldn’t avoid delays in shipment. The laboratory assistant and the veterinarian slowed down shipment as for each client, and among them there are also small clients, they had to issue accompanying documents in electronic form in full: different types of certificates. But I think we will find a way to avoid delays when “Mercury” is fully operational. It will take a month or two to debug.
But even the manufacturers themselves believe that there are more advantages of this system and those who have something to hide resist it.
- The illegal players who mix ingredients of unknown quality into dairy products resist it. They have up to 700 percent of profit with this.
Automation of the process will nullify the sales of falsified products, it will be possible to clearly trace where and what the product is made of. Conscientious producers of raw materials are certainly for this system and are ready to work in accordance with its requirements, as it will put an end to competition with illegal producers, who are simply impossible to win against. Try to get and sell true milk, not a surrogate that does not deteriorate for six months. To us, producers of a final product, it is easier to work with official suppliers of raw materials, - Velichko considers.
As for the rise in prices for milk and dairy products, market participants are more cautious.
- Many experts agree that retail prices may increase by an average of three to four rubles. But we, like all participants in the process, be it a farmer, a dairy plant or a store, do not get profit from price increases, as the purchasing power is not growing, - says the representative of the Marketing Department of the retail chain Valery Kapustin. - I believe that milk processors are not yet fully ready to work in the “Mercury” system. They should organize a workplace for veterinarians with Internet access. This will require significant additional investments at the initial stage, and then annual operating costs.
Who and to what extent will be able to reduce their costs to keep prices down or, on the contrary, to wind up the cost of the final product, shifting costs to the consumer - the near future will show.
According to the statistics of the Rosselkhoznadzor, 151 million electronic veterinary accompanying documents were issued in Russia in April including 3.5 million documents for finished dairy products. "In total, in April 2019, 13172 economic entities participated in the certification of finished dairy products, 5994 of them produced finished dairy products and the rest only participated in circulation.
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