The aggravating dairy crisis in Russia will, as a minimum, strike the northern provinces of Kazakhstan.
Kirill Pavlov, famous agricultural expert, discusses above in his Facebook account. Literal translation below:
“We need to pay more attention to dairy industry. According to statements made by Artiom Belov, Director of Russian Union of Milk Producers, the situation in Russia is complicated. The milk production is going up, but demand and imports have dropped down, which two circumstances were to the detriment of prices.
Smaller producers are at the edge of closure – that is a matter of time. Belov says, that in a couple of months the market will come to balance, but it will be then that individual milk producers will increase milk output and sales will fall down more. The Russian dairy products operators will either find new markets, or decrease output, which is of low probability.
May be Russian dairy products will flood stores in our northern provinces, which provinces already have excessive stocks of imported products. Those imported products are mainly from Russia. As for indigenous producers in the provinces, they will face complications, especially those mediocre of them. Smaller producers shall not survive, at all. Falling into oblivion, they will liberate stores from their products for imports.
Our famous producer Sauer will survive in that competition, although it will be some challenge. As for Zinchenko, he will have some hard times, although he is big, but is located right on the border. As for logistics towards Astana, that sector is very sensitive, especially because of diesel fuel prices.
Growing diesel prices will make forage more expensive. There is one good factor – enough raining, but that is a drop in the ocean, while our rulers will always find something to make life worse.
If we want to be nutritionally independent, we need to do something, we must motivate farmers, create new dairy farms, expand existing ones, provide help who is in the shaky position. But not through forcing farmers to keep prices on leash. Or, the market should be totally submitted to imports.
