Associate Professor of the Department of Finance and Prices of the PRUE G.V. Plekhanova Maria Dolgova on Monday, February 14, explained what factors take into account the prices for dairy products.
According to her, the dynamics of milk prices depends on the cost of feed, transportation and labor costs, prices for veterinary drugs and herd maintenance (electricity, space heating, equipment depreciation), as well as on the development of the situation with the coronavirus pandemic.
“Prices for dairy products depend on the cost of raw milk purchased by processing enterprises, the cost of additional ingredients, packaging, labeling, and transportation. Changes in prices for these products will correspond to the dynamics of milk prices and even overtake it – the reduction in the raw material base, the change in the prices of imported ingredients will affect, ”the Prime agency quotes the expert as saying.
Dolgova also clarified that in the best scenario, milk will rise in price within the limits of inflation. The financier cited data from Rosstat, according to which, since the beginning of the year, prices for whole pasteurized drinking milk have increased by 1.65%, and whole sterilized drinking milk – by 1.6%. Inflation was 1.07%.
As Dolgova explained, forage, herd maintenance and veterinary services account for almost half of the cost of milk. Moreover, a significant share of feed additives, veterinary drugs is imported.
The expert also noted a decrease in the number of livestock in the country. Last year it fell by 1.9%.
Earlier, on February 3, Minister of Agriculture Dmitry Patrushev said that the Ministry of Agriculture would work out measures to support bread and milk producers. He noted that the Russian government is taking the necessary measures to contain the cost of basic products. To support livestock breeders, it is planned to additionally allocate at least 10 billion rubles to them for the purchase of feed.
On January 24, Deputy Prime Minister Viktoria Abramchenko, following a meeting on the situation in the dairy industry, announced that she had instructed the relevant departments to work out additional measures to support the dairy business and provide for compensation for the costs of enterprises for the purchase of feed in 2022, following the example of last year.
Those present at the meeting acknowledged that the economic impact of the pandemic has affected the dairy industry. Manufacturers complain about the rising cost of feed, veterinary drugs and electricity.
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
