Russians don’t have money for expensive dairy products
Situation with demand for dairy products is complicated in Russia — prices are growing, people began to save expenses.
Inflation on drinking milk made 10.5% for a year, sour cream — 10.7%, cheeses — 10.1%, curd — 12.6%. That it is only official data, and actually the situation is much worse. Quickly weakened ruble has additional influence on consumer attitude. If demand decreases at such fast rates, Russian dairy market will at last be self-sufficient in a few years.
Production of milk will grow this year: the government expects 2% increase in comparison with previous year, and Head of the Department of Animal Husbandry and Breeding at Russian Ministry of Agriculture Vladimir Labinov forecasts 6.4% growth by 2016 in comparison with 2013.
Forecasts are optimistic, but there are also risks. It is necessary to buy cows for increase of milk production, to borrow money. In this case a help of the state is needed: subsidized programs, discounts for crediting.
Today cost of dairy business is already high enough in Russia in comparison with other countries, and in the conditions of financial sanctions and probability of limited financing, absence of additional support can brake plans of the government.
While state support is planned only at level of «not lower than in 2014», and the Ministry of Agriculture is deciding, whether it is necessary to cancel in 2015 a quality condition when a subsidy for 1 kg of milk is determined. The government and Russian Union of Dairy Enterprises support a keeping of the system which should stimulate to raise quality of milk. At the same time, National Dairy Producers Union Souzmoloko and large agricultural associations believe the scheme does not work and generates corruption additions in regions.