Artem Belov: dairy producers have exhausted the reserve of not raising their prices

Источник: ria.ru
The increase in the cost of milk and, as a result, of dairy products will inevitably affect the final price, since many producers can no longer sacrifice their profitability, said Artem Belov, CEO of Soyuzmoloko, which unites milk producers and processors, to RIA Novosti.

Earlier, the Ministry of Agriculture of the Russian Federation reported that it does not expect a sharp increase in prices for dairy products in 2022, but admits that prices will rise for certain items. The ministry stressed that, despite a significant increase in producer costs, over the past year, the dynamics of prices for milk and dairy products remained below the rate of food inflation.

‘Until now, manufacturers preferred to sacrifice their profitability, but maintain consumption, but this year many have run out of this buffer, and this situation will inevitably put pressure on prices,’ Belov said.

The head of Soyuzmoloko reminded that the cost of producing a liter of milk ‘increased by 15-16% in 2021.’ ‘The cost of processing has also increased significantly - by 14-16%, depending on the category of dairy products,’ Belov added.

At the same time, according to him, the increase in the cost of dairy products was not compensated by the increase in prices on the shelf and on the farm. ‘Milk and dairy products belong to a socially significant category of goods, and it is not so easy for the manufacturer to shift the increase in the cost of production to the price on the shelf, especially in conditions of a reduction in the real disposable incomes of the population,’ Belov said.

The Danone Group, which, in particular, owns Prostokvashino and Activia brands, has notified retailers about an increase in the cost of part of the assortment by almost 10% since February 2022 against the background of an increase in production costs, the Kommersant wrote on Monday. Meanwhile, last week, Deputy Prime Minister of the Russian Federation Victoria Abramchenko instructed to work out additional measures to support the dairy industry, as well as providing compensation for the cost of purchasing feed in 2022 in order to prevent an increase in prices for these products.



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