Milk Production Costs in Krasnodar Krai Rise by 10-12%
The cost of milk production in Krasnodar Krai has risen by approximately 10-12% over the past year. This was reported on October 1st in an interview with RBK TV Yug by the CEO of Yuzhnyy Molochnyy Soyuz, Konstantin Sinetskiy.
According to Sinetskiy, the increased costs are due to several expense categories. He mentioned fuel, including gasoline and diesel, equipment, and labor costs. The union leader noted that prices for energy, equipment, and wages are not decreasing.
Among the equipment used on farms, Sinetskiy mentioned milking machines, machinery for farm operations, and equipment used in feed production. These expenses contribute to the overall cost of milk, which has increased by 10-12% compared to the previous year.
The rise in production costs has not yet led to a comparable increase in retail dairy prices. According to the head of Yuzhnyy Molochnyy Soyuz, retail prices in 2026 are almost stable. He linked this situation to market participants' intention to increase sales volumes.
Sinetskiy noted that over the past year and a half, discounts of 30-40% have regularly been applied to dairy products. He described this as retail networks' policy and highlighted that dairy products are significantly cheaper than other goods on shelves, such as meat and bread.
Despite the rising costs, Krasnodar Krai has increased milk production. According to preliminary estimates by Russia's Ministry of Agriculture, 1.3 million tons of milk were produced in the region in 2025. This is a 2.8% increase over the previous year.
According to data published by RBK Krasnodar, the region ranked fifth among Russian regions in milk production growth rates in 2025. The volume and dynamics assessments refer to the previous year, while the cost data provided by Yuzhnyy Molochnyy Soyuz compare current levels with those of a year ago.
