Russia: the cost of milk is growing, production has begun to decline

Produkt.by published extensive material on the state of development of the dairy industry in the Russian Federation. The comments of experts indicate that 2021 has become unique in terms of the growth rate of the cost of milk in the country.

The cost of producing raw milk for 10 months of 2021 increased by 28%, its processing - by 14-16% compared to the same period in 2020. Growth was provoked by an increase in the cost of feed, spare parts, mineral fertilizers, veterinary drugs, fuels and lubricants and other things. At the same time, the price tag on the trading shelf grew only by 4.5%.

Alexei Gruzdev, General DIRECTOR of Streda Consulting, is sure that by the end of the year the situation will not be able to seriously change and the growth in milk yield in the country's agricultural enterprises will not exceed 1%, but rather be closer to 0.5-0.7% - this is only about 150 thousand tons commercial milk. Moreover, a decrease in production from 2% to 8% continues to be recorded in a number of dairy regions.

“In 2021, a number of negative factors formed into a single wave in the dairy industry, which together led to a reduction in production,” continues Gruzdev. “At first, a sharp increase in the cost, not won back by an increase in milk prices , forced the farms to save and curtail investment plans, and then the weather factor was added: first, the heat hit milk yields and herd reproduction, and then rains and early snow affected the quality of feed.”

According to the expert, the industry will meet the year 2022 in a different reality: the cost of milk has reached a new, higher level, which has sharply raised the requirements for the efficiency of dairy farms, and in the future will adjust their investment priorities.

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