Soyuzmoloko Expects Dairy Product Demand to Increase by 3%

Source: milknews.ru
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The National Union of Milk Producers anticipates a roughly 3% increase in demand for dairy products by the end of the year. The head of the organization, Artem Belov, reported growth in commercial milk production and a recovery in the industry's profitability.
Soyuzmoloko Expects Dairy Product Demand to Increase by 3%

Artem Belov announced the expected growth in demand at the XXVIII Russian Agro-Industrial Exhibition 'Golden Autumn'. According to him, the price of raw materials began to rise in September, and the production of commercial milk maintains a positive trend. He described the current situation in the industry as comfortable, noting that the main issues are medium- and long-term in nature.

The head of Soyuzmoloko identified tight monetary policy as one of the main medium-term constraints. He noted that it significantly affects investment activity, and the number of new projects is declining. Belov expressed hope that a reduction in the key rate will lead to a new surge in investments in dairy farming.

Another risk he highlighted is veterinary threats associated with the industrialization of production. Large complexes account for about 60% of commercial milk production. Belov noted that the dairy industry has begun to fully face problems in recent years that the poultry and pig farming industries experienced five, seven, or ten years ago.

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In this context, according to the head of Soyuzmoloko, managing veterinary risks, including insurance mechanisms, becomes particularly important. He urged to give this direction top priority. As one of the tools to reduce risks, the industry also uses digital solutions.

Belov reported that discussions on digitalization have been ongoing for about seven to ten years. Now, in his view, the industry has moved from the first AI-driven startups to the industrial application of technologies in animal husbandry. Among the solutions used, he mentioned big data analysis, digitalization of genetics, genomic evaluations, and the creation of a breeding value index. Certain systems help assess animal health, lameness, and udder condition.

Belov stated that such tools have already been implemented in actual operations and allow improving the evaluation of indicators, maintaining animal health, and reducing certain risks. However, he emphasized the need to critically verify AI recommendations: blind trust in the system could lead to false positives. According to him, humans remain a necessary part of decision-making, with AI used as a tool.

It was previously reported about plans to create a specialized food cluster in the Voronezh region. Enterprises for agricultural raw material processing and finished product production intend to locate in the 'Perspective' industrial park. The project has been allocated 10 hectares with the potential to expand to 20 hectares, with a construction area of approximately 60,000 square meters. Infrastructure investments will exceed 200 million rubles, and the first phase is scheduled to launch in the fourth quarter of 2026.


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