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Milk exports from Russia increased only by 4%

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Milk exports from Russia increased only by 4%

In the first 10 months of 2019 Russia exported 541 thousand tons of dairy products abroad but milk exports from Russia increased only by 4%. The volume of exports of dairy products in the first 10 months of this year exceeded the results of 2018 by 4% and amounted to 541 thousand tons for $263 million, according to the analytical center Milknews. About 90% of deliveries were to the CIS countries. Also, consumers of dairy products from Russia are Mongolia, Abkhazia, Georgia and China.
In January-October, shipments of cheese increased by 17%, Kazakhstan, Ukraine and Uzbekistan became the main buyers, and deliveries of cheese products mainly to Uzbekistan, Tajikistan and Ukraine increased by 22%. Exports of ice cream increased by 8%, external sales of dairy products were 3% more, skimmed milk powder – by 1%. At the same time, exports of drinking milk and cream fell by 25%, whey — by 16%, butter — by 19%, whole milk powder — by 3%, cottage cheese-by 9%, according to the report.

milk exports from Russia increased only by 4%
However gradually the export of milk from Russia continues to grow

The main export market of Russian dairy products is the CIS countries, Alexey Gruzdev, managing partner of the consulting firm Streda consulting, confirmed to Agroinvestor. “The negative dynamics in the export of milk and cream, whey, butter and cottage cheese is associated with increased competition from Ukraine and Belarus,” he explained. — If you look at how much the export of Belarusian dairy products has increased, you can see that it has grown by about the same amount as the Russian one has lost.”
Next year, a similar situation will continue: dairy products will be delivered to the same markets where they are already represented, he said. “It is true that exports to China are growing, the market of which opened for Russia last year, but then everything will depend on the state organization in terms of gaining access to new markets,” says Gruzdev. — But even if new directions are opened, first there will be trial deliveries, so next year breakthroughs should not be expected.” However, there will be an increase in supplies in any case, because the competitiveness of Russian dairy products is increasing, he added.

During the conference” Agroinvestor “” agricultural Holdings of Russia”General Director of the National Union of milk producers (“Soyuzmoloko”) Artem Belov predicted that by the end of the year, the export of dairy products will increase by 3-5%, which, according to him, is a very good dynamics and at this year milk exports from Russia increased only by 4% .
Deputy Chairman of the state Duma Committee on agricultural issues, President of Soyuzmolok Airat Khairullin believes that one day Russia will feed all kinds of food to 1.3 billion people. “In order for this to happen faster, we need to develop each area of agriculture very deliberately,” he says. — We are already the most competitive in the world in terms of grain, and in the future, I think, there will be no problems with this, and with animal husbandry is always more difficult.” According to him, the development of exports of dairy products depends on government assistance, investment and well-established competition. “Our main task is to learn how to produce a huge amount of high-quality milk with low cost, and without the support of the state it is impossible. We have very good prospects for dairy farming, but we need significant investment from business and the state, ” Khairullin said. He also believes that the Russian market of dairy products is highly competitive. “In China, for example, our dairy products are considered environmentally friendly, because, in their view, the poor Russian farmer has no money for pesticides,” he comments.

Earlier, The milknews portal reported that in the first 10 months of this year, imports of dairy products increased by 14% compared to the same period in 2018 due to the growth of supplies from foreign countries and Belarus. Russia mainly buys cheeses abroad, which accounted for about 40% of imports in value terms, butter (22%), dry and condensed milk and cream (16%). In total, in January-October, 5.5 million tons of products were imported for almost $ 2.3 billion. that is, exports were more than 10 times less than imports in physical terms and 8.7 times less in value. In 2019 milk exports from Russia increased only by 4%. .
Khairullin confirms that Russia still depends on imports of milk and beef, but the development strategy now is to become the largest supplier of these products. “If we can reduce the cost of our products, we will not be afraid of any imports. But while we can not fully provide for themselves, although every year we increase the production of milk, – he complains. “The main thing is that the existing support measures do not stop working, and then in five or six years we will not only be able to provide for ourselves, but also there will be some surpluses.”
During the meeting of the state Council concerning an agrarian policy which took place on December 26, Minister of agriculture Dmitry Patrushev announced that the export of agricultural products and food in 2019 will be about $25 billion versus $25.8 billion in 2018 and a planned level of $24 billion and he has noticed that with a steady decline in imports, the volume of export of agricultural products during the five years increased by 30%, but at this year milk exports from Russia increased only by 4%.

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