There is an upward trend in the Russian production of raw milk and dairy products. For example, milk production increased by 2017% in 4,7 to 18,1 million tons. It can be seen as a positive development, because Russia wants to meet the domestic demand for dairy products itself from 2020 onwards.
The country would like to continue with the line it has taken. That's why the government comes in Russia with a supporting package of measures. This is not only to further develop dairy farms, but also to boost the processing of raw milk. The aim is to professionalize the entire processing chain.
According to statistics bureau Rosstat, the production of milk powder (whole milk powder, skimmed milk powder and whey) has increased by no less than 25% last year. Also this year, the Russian dairy sector is likely to record growth figures, as raw milk production increased further in the first 6 months.
Lower prices
The growing milk powder production also has a negative effect: lower prices. For example, the price of skimmed milk powder was more than 8% lower in mid-July than 1 year earlier. The price of whey powder actually fell by more than 25%.
The market situation for powdered dairy products is currently quite stable. The decline in recent months also results in a lower payout price. The Russian milk price for September is 21,38 rubles per kilo (about €0,27 per kilo). Compared to 1 year earlier, this is a decrease of 2,18 rubles per kilo.
Another big gap
Russia wants from 2020 self-sufficient are when it comes to dairy. The gap between the production (65.000 tons) and consumption (105.000 tons) of whole milk powder is still quite large. Whether this ambition can be realised, therefore, remains to be seen.
To close the gap, the Russian Ministry of Agriculture wants to better coordinate and further professionalize the production and processing of dairy.
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