"Gross raw milk production in the Novosibirsk Region is growing at a serious pace, the region produces approximately 2 (two) thousand tonnes of marketable milk every day, and the region is actually in a state of local overproduction crisis," says the statement.
According to the Union, the lack of raw milk processing facilities has led to the fact that more than half of Novosibirsk's milk is processed in neighbouring regions - mainly the Altai Territory, Omsk and Kemerovo Oblasts. Siberian dairy farmers note that due to the unfavorable situation with the spread of coronavirus infection, the demand for milk and dairy products, as well as their sales, has dropped.
As an example, the letter cites the situation with the largest processor of the Altai Territory agricultural holding "Capital of Milk". Stocks at its warehouses by main categories of finished products have increased. Thus, the company has about 3.5 thousand tons of butter in storage. The drop in solvent demand of the population, the growth of stocks in warehouses, the fall in purchase prices for raw milk increase the risk of non-payment, according to "Soyuzmoloko. Siberia".
"There are fears of an unprecedented collapse of prices of milk and raw materials in connection with the supply of cheap dairy products from the Republic of Belarus to the Russian market," reads the address of the Union.
In this regard, Souzmoloko.Sibir believes that the supply of cheese, butter and dried milk from Belarus should be reduced in order to reduce the volatility of the milk market.