The government predicts a decrease in the financial stability of the dairy industry

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The government predicts a decrease in the financial stability of the dairy industry
The government predicts a decrease in the financial stability of the dairy industry
14 March, 09:20SocietyPhoto: 1MI
The Ministry of Economic Development and the Ministry of Agriculture, on behalf of the Russian government, studied the current state of the dairy industry, including the production of raw milk and the processing industry.

They came to the conclusion that if the industry does not receive additional support, it is threatened with a decrease in financial stability, and individual enterprises - with bankruptcy.

According to Interfax , due to the rise in feed prices, there is a risk of a decrease in milk yields and a reduction in the load on processing capacities.

Prices for the main components of the raw milk production cost grew quite quickly. In December last year, compared to the average price for 2020, the growth for feed wheat was 24.7%, for premixes - 64.3% , for compound feed - 16.9% . The share of feed in the cost structure of farmers is about 55%, the share of raw milk in the cost structure of processors is 74%.

In the nine months of 2021, the cost of raw milk production increased by 11%, while profitability decreased to 11.9% . The processing industry showed an increase in cost by 17.2% and a decrease in profitability to 5.1% .

Now the Russian authorities intend to allocate 10 billion rubles to the industry for the purchase of feed.

In early March, Deputy Prime Minister of the Russian Federation Victoria Abramchenko announced the preparation of additional measures to support the agro-industrial complex. Proposals have been developed to reimburse part of the costs for producers of bread and bakery products. Measures to support the dairy industry are being worked out.

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