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Milk Supply Increases, More Subsidies in the Pipeline

29 May 2012

USDA Foreign Agricultural Service

RUSSIA - Milk production in Russia continues to increase, as prices continue to show resiliency to the onset of seasonally higher production, according to the USDA Foreign Agricultural Service.

A higher revised 2012 milk production forecast reflects 4.5 per cent stronger milk production in January- March compared to the previous year.

In addition to favourable prices, output remains supported by slowing dairy herd contraction, new market access trade barriers, maintained levels of state support, higher per cow feed stocks and improving milk yields and animal husbandry at agricultural enterprises.

With uncertainties surrounding Russia's ascension into the World Trade Organisation (WTO), the government is looking at increasing farm support.

Combined, federal and regional state programs allocated more than RUR27 billion ($900 million) for dairy cattle husbandry in 2011 and RUR94 billion ($3.1 billion) over 2008-2011.

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