Milk producers in Russia want tariff cuts and new subsidies

Published 2021년 3월 26일

Tridge summary

The Director General of the National Union of Milk Producers in Russia, Artem Belov, has appealed to the Ministry of Agriculture, seeking a reduction in import duties on Russian dairy products in China. This move aims to enhance Russia's export competitiveness, particularly in products such as butter, cheese, whey, and milk powder. In 2020, Russia witnessed a 23.7% increase in dairy exports, totaling 871.8 thousand tons, with China's imports surging by 36%. Despite the growth, the industry faces challenges due to high customs duties on products from Russia compared to those from New Zealand and Australia. Belov's proposal includes significant investments for the modernization of dairy processing facilities, seeking to boost exports and increase the tax base in the long term. Additionally, the article highlights the dependence on imported raw materials for baby food and emphasizes the need for continued support for the production of raw materials to enhance Russia's competitive position in the Chinese market.

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Original content

Director General of the National Union of Milk Producers ("Soyuzmoloko") Artem Belov asked the Ministry of Agriculture to resolve the issue of reducing import duties when importing Russian dairy products into the PRC. This will help boost exports of butter, cheese, whey and milk powder. The proposal was announced at a meeting of the State Council commission on March 24, two of its participants told Kommersant. The Ministry of Agriculture said that they would analyze and consider the proposals of Soyuzmolok. As Artem Belov explained to Kommersant, in 2020 Russian producers began supplying exchange-traded goods of the dairy industry to China - milk powder, whey, etc. But the market is dominated by producers from New Zealand and Australia, he continues. According to him, the customs duty rate for these countries varies from 0% to 5%, for Russia - from 10% to 20%, which reduces not only the competitiveness, but also the profitability of companies. According to preliminary data from ...

Source: Agrovesti