Milk production in Russia is increasing

Milk production in Russia is increasing

5 February 2021 News from the Company

Prevent a sharp increase of consumer prices for dairy products. - This goal became one of the main topics at the XII. Congress of the Russian Association of Milk Producers ("Soyuzmoloko"). Representatives of the dairy industry, relevant authorities and ministries gathered to look back on the association's work over the past year and to formulate the most important goals for the near future. Stefan Dürr, Chairman of the Board of Soyuzmoloko, traditionally opened the Congress.


"In 2020, the dairy industry continued to grow successfully despite the pandemic," Stefan Dürr reported. "Thanks to government support, demand for dairy products has not fallen, but has risen continuously. Of course, the costs for raw milk production and processing have also increased. The state support measures have been maintained at the same level and we should thank the government for that. It's good that the priorities of the state and the dairy industry, the most important of which is to prevent a sharp rise of prices on shop shelves, are aligned."

The congress was also attended by Dmitry Patrushev, Minister of Agriculture of the Russian Federation. In his welcoming speech he emphasized that the government continues to stimulate the development of the dairy industry thanks to a wide range of state support instruments. Last year, more than 28 billion rubles were allocated for this purpose. It is also planned to maintain all existing support measures for milk producers in 2021. These include subsidies, CapEx and low-interest loans.

"As part of the additional support for livestock farms and dairies, the direction for the targeted use of short-term loans has been expanded," the minister said. "Starting this year, they can also be used for the purchase of grain as well as the purchase of other feed components."

It is worth noting that milk production in 2020 increased by 850,000 tons in Russia and exceeded the 32 million tons mark. This is the best result in the last ten years. Another record was marked by the milk yield of over 6,000 kg per cow. According to experts, the production of curd, butter, cheese and ice cream increased last year. The production of dried milk and sour milk products remained at the same level as in 2019.

"We expect milk production to reach the volume of 32.6 million tons in 2021. We have every opportunity to achieve this," Patrushev emphasized. "This is to happen primarily through an improved feed base as well as healthy animals."

In the last five years, the export of dairy products has increased by one third. In 2020, foreign trade in dairy products exceeded 300 million US-Dollars, 12% more than in 2019. Work in this direction will continue, while the focus will remain on the domestic market, ministry officials underlined. According to the food security doctrine, the self-sufficiency level for milk and dairy products should be at least 90%. So far, according to experts, this value is only just over 84% so far.

The issues of dairy product labelling were also lively discussed by the congress participants. Voluntary labelling of dairy products was introduced in Russia on 20 January 2021, and from 1 June this year labelling will be mandatory. Companies are actively preparing for this. Dairy industry representatives appealed to the ministry to consider additional mechanisms to support the industry, as the additional costs of labelling products will require RUB 12 billion annually. In turn, representatives of the Ministry of Agriculture have already submitted a proposal to the government to consider the possibility of compensating the dairy industry for part of the costs of labelling.

By Tatiana Ignatenko