Milk production has risen in price by 18%

Materials of the National Union of Milk Producers (Soyuzmoloko) testify to a significant increase in the cost of producing raw milk. According to his calculations, in March 2021, the cost of milk production was 18.2% higher than in March 2020. The reason for this, the general DIRECTOR of the union, Artem Belov, calls the rise in price of feed, breeding material, equipment and spare parts, and veterinary drugs.

The cost of raw milk production increased by 20-30% in 2021 compared to last year, estimates Dmitry Matveev, president of the Kabosh agricultural holding (one of the ten largest producers of raw milk in RUSSIA and produces more than 20 varieties of traditional cheese). According to Matveev, the depreciation of the ruble against the DOLLAR and the euro also had an impact on the increased cost of production. Only animal feed last year went up by 30%, says the president of Kabosh. The cost of feed increased by 3 rubles. per 1 kg, while the cost of selling raw milk increased by only 0.5-1 rub., confirms Stefan Duerr, president of the Ekoniwa agricultural holding.

Dairy producers and processors are now working in the face of “significant increases in costs for veterinary drugs, logistics, electricity, packaging and other cost components,” admits a representative of the Ministry of Agriculture. According to him, customs-tariff measures for regulating the grain market will help reduce the cost of feed and reduce the costs of milk producers.

The industry union so far names the average cost of raw milk only according to the results of February this year: this month it was 29.5 rubles. (without VAT) per 1 kg, which is only 3.6% higher than in February 2020. The Ministry of Agriculture has data as of April 21, 2021: the selling price of raw milk from agricultural producers was 26.6 rubles. per 1 kg, which is 4.1% more than a year earlier.