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Russia - Problems in the dairy industry

10 Feb 2010

 Milk shortage in Russia caused by the new technical standards for dairy products,  has led to a significant reduction in output and deterioration of financial performance of leading local dairy producers, such as Wimm-Bill-Dann (WBD) and Unimilk in the fourth quarter of 2009, according to Russian media reports.
The fourth quarter of 2009 was extremely difficult for the whole Russian dairy industry due to the acute shortage of raw milk, which was closely related with a seasonal decline in milk production in the country, and unexpected shortages of milk powder, analysts said.
According to official data the supply of dairy products to the Russian market in recent months declined by 30%, while the most intensive drops observed in the case of WBD and Unimilk and some foreigners operating in the local market.
Many of the Russian dairy producers was being forced to halt production, especially in the second half of the fourth quarter, which result in significantly lower sales for them.
According to analysts’ forecasts, the Russian dairy industry will continue to experience a decline in the coming months due to the reluctance of producers to label their products in accordance with the new standards and massive supplies of cheap milk from neighboring Belarus.

Source: foodbizdaily.com

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