Dairy Producers in St. Petersburg to Increase Prices from November 1
Dairy producers have sent letters to retail chains in St. Petersburg notifying them of price changes starting November 1. The news was reported by the publication 'Fontanka' on October 18, citing a representative of one of the retailers; the documents were also made available to the editorial office.
According to these notifications, GK 'Galaktika' plans to increase its product prices by 3-9%. The company 'Ecomilk' indicated an increase of 5%, while 'Severnaya Dolina' mentioned an 8% rise. The extent of the change depends on the manufacturer and specific product lines listed in the letters to the retail chains.
Some companies had already changed prices in October. 'Logika Moloka' increased their prices by 4.2%, and 'Wimm-Bill-Dann' by 5-11%. Thus, the notifications for the November increase follow earlier changes by individual suppliers.
One of the factors affecting the cost of dairy products is the price of raw milk. Artem Belov, head of 'Soyuzmoloko', reported that in September and October, the raw material prices were rising rapidly, with dynamics differing across regions. According to him, the raw material costs in milk processing account for 40% to 80% of the production cost, depending on the segment.
Based on the assessment of Andrey Dakhnovich, Director of Development at GK 'Foodland', raw milk has increased in price by 15% since the beginning of the year. He noted that this could affect either the cost of finished products or the profitability of producers. In the Leningrad region, agricultural producers had previously estimated the price of raw milk at 36–38 rubles per liter, while later it reached 42–43 rubles.
The head of one dairy plant predicted a further increase in raw milk prices in the Leningrad region to 45–46 rubles per liter by the end of the year. This statement was made in the context of discussing the dynamics of procurement prices for raw materials; in the published letters to retail chains, producers specified the exact price increase for finished products.
