Artem Belov: the growth rate of commercial milk has approached zero level

‘Since 2014, the average annual growth rate of raw materials was about 3.5%, in 2019-20 it reached 5% - these were very good figures. Nevertheless, according to the results of 9 months of 2021, the increase in the production of commercial milk has already amounted to less than 1%, that is, a five-fold decrease has actually been recorded. This is to the question of where the milk is now,’ the expert said.

Artem Belov explained that the balance established in the dairy market of Russia (and Belarus, which is also important in this matter), suffered greatly in 2021 due to natural and climatic conditions, and as a result, we see a decrease in production volumes in a huge number of regions.

‘There used to be a balance influenced by not only Russia, but also by Belarus, which gradually reoriented its exports to third countries - Asia, China. In Russia, the production of commercial milk was steadily growing, which made it possible to produce products and replace Belarusian imports. Everyone understood how the situation would develop. But 2021 has unbalanced the situation,’ Artem Belov added.

The expert summed up that in this situation, the task of regional and federal authorities is to work on supporting profitability in the industry.