Souzmoloko determines three factors of negative situation in Russian dairy sector
The existing negative situation in Russian dairy sector is connected with three factors: 1) Russia’s WTO accession and weakening of customs-tariff shelter for local producers; 2) 2012 drought in several Russian regions and as a result raw milk production profitability decrease; 3) disequilibrium of state support of dairy sector.
As a result, according to Rosstat, cow population in all categories of enterprises decreased by 2% or 180 thousand heads in Q1 2013 compared to the same period of 2012. Raw milk production decreased 4% or 260 thousand tons. The most significant loss was detected in Volga (-1.6%), Siberian (-8.6%) and Central (-4.3%) Federal Districts.
As a result of raw milk deficiency as per 1 May 2013 production of cheeses and butter decreased 10.4% and 3.3% respectively. The situation at hand provoked import increase.
