Russia: Why is the price of dairy products on the rise?
Dairy
Russia
Published Jan 18, 2022
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, ...
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