Russia Ups Dairy Support in 2016

RUSSIA - Russia's Agriculture minister Alexander Tkachev promised extra money for the country's dairy industry during the recent 'Agrofarm 2016' event.
calendar icon 22 January 2016
clock icon 2 minute read

Mr Tkachev said that the state support of the dairy industry is unprecedented, and it is necessary to achieve self-sufficiency for 90 per cent of milk production.

State support of the dairy industry in 2016 increased by almost half to about 30 billion rubles.

"We need to build a new dairy complex, support the development of family livestock farms and to increase the productivity of dairy cattle," he said.

Mr Tkachev drew attention to the issues that limit the growth rate of the domestic production of high-quality milk products, which he saw as:

  • Increased cost of milk production, as a result of which the majority of producers of raw milk are on the edge of profitability;
  • Reduced demand for finished products because of reduced the purchasing power of the population;
  • Reduced availability of credit and, as a result, many investment projects have been frozen;
  • Increased influence on the dairy market of Belarus in terms of both the volume of milk and the price.

Considering these factors, the Mr Tkachev said the government is ready to increase support dairy farming.

The head of the Ministry of Agriculture of Russia in his speech also drew attention to the fact that the main resource of cattle meat in Soviet times was provided by livestock culled cows and fattening calves in dairy cattle breeding.

"The organisation of feeding can further ensure the production of 400-500 thousand tons of beef annually," said Mr Tkachev.

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