Tridge summary
In 2021, dairy prices in Russia increased by approximately 30% compared to pre-pandemic levels, due to a 20% rise in the cost of raw milk production and higher costs of concentrated feed, fertilizers, and imported components. Despite these increased costs, producers and retailers managed to limit the price increase for dairy products on store shelves. The retail prices for milk and dairy products experienced a lower increase compared to other food products, with the introduction of labeling potentially reducing price volatility and decreasing costs or slowing down the price growth for products. The primary factor contributing to the increase in prices for packaged dairy products is the rise in the cost of raw materials, industrial packaging, imported veterinary drugs, electricity tariffs, and exchange rates.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
In 2021, the increase in dairy prices continued, and the increase compared to the pre-pandemic level reached about 30% reaches 80%. According to experts, in 2020 the cost of raw milk production increased by 20%, in 2021 the growth continued, and the increase compared to the pre-pandemic level has already reached 30%. In particular, on dairy farms, the cost of concentrated feed and fertilizers increased significantly due to rising prices on world markets, and the devaluation of the ruble increased the cost of all imported components, whose share is estimated at 20-30% of the cost. These are veterinary drugs, premixes, repair of equipment, the cost of growing our own feed, etc. In processing, the increase in the cost of production ranged from 15% to 30%, depending on the type of product. The increase in milk prices was also accompanied by an increase in other cost items - packaging, transport (logistics), all imported ingredients, equipment service, etc. According to experts, ...
Source: Agroxxi
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