Russia's National Dairy Producers Union expects stable production in 2023

Market impacted by weak demand, decreasing global dairy prices
calendar icon 2 May 2023
clock icon 2 minute read

A regular meeting of the board of Soyuzmoloko, the National Dairy Producers Union, was held in the Moscow region in recent weeks, during which the owners of the largest dairy enterprises discussed the current situation in the industry, tools and measures to support the sector.

Artem Belov, CEO of Soyuzmoloko, noted in his speech that in 2022, the industry ended with positive results: production of raw milk had increased, and yields have recovered to a pre-Covid levels. This year, the union expects milk production to remain at the level of long-term averages.

"Today, several main factors affect the market: weak demand, a decrease in world prices for dairy products, as well as significant stocks of exchange goods and cheeses in the warehouses of producers," Belov stressed.

The industry is in a situation of finding a new price balance, he continued. Adjustment of prices for raw milk and - along the chain - in processing and on the shelf will contribute to the revival of demand, as well as the gradual restoration of export sales.

The Soyuzmoloko directorate reported on the work done during the first quarter. Artem Belov drew attention to the fact that in 2023, all systemic measures and planned volumes of state support for the dairy industry were preserved and expanded. It is expected that about 65 billion rubles will be allocated for the development of the sector. The Union continued to work on justifying proposals for improving the support system, export development, reducing administrative barriers and burden on business, including the introduction of marking.

During the meeting, the board members visited the Hochland cheese factory, where they got acquainted with the production processes of processed and curd cheeses.

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