Russia's dairy industry doesn't come on the legs - opportunities for the EU?

Russia milk production falls sharply for 25 years - imports.

Russian milk production has not succeeded since the political changes 25 years ago, to increase the offer amounts. On the contrary, the milk production is declining. In a high and rising demand in Russia for milk and milk products. The supply deficit is offset by growing imports.

40% of the consumption of butter from abroad obtained. Skimmed milk powder imports accounted for nearly 70%. In the case of whole milk powder, 43% are imported. Imports of cheese are 46% of the total demand. Together that is import weight 660,000 t per year. Cheese imports accounted for half of them.

Belarus provides 27% of the imports of the cheese, 35% of butter imports, and 95% of whole milk powder imports. Germany's cheese exports have been scaled back because of Russian objections to 40% in 2013. The Netherlands jumped up and could increase their market share. Otherwise, the New Zealand helping out.

In 2014, the Russian milk production again by 1 million tons to about 30 million tons to fall. In 1988, the milk production was 54.5 million t. A major reason for the low increase of milk production is that about 48% of the milk producers are self catering. The average milk yield is 3,800 kg, in commercial farms 4,500 kg per cow. Producer prices in 2013 were converted from 13.5 to €15-ct per liter. consumer prices for butter have risen in recent years at €1.5 per kg.

The Government subsidization of the dairy sector lagged far behind those of other agricultural products. The dairy sector has received €15.3 billion. The period of discounted loans was too short 8 years for many companies. Now to extend the repayment period to 15 years. In addition receive decoupled area premiums. However, the payment of the State institutions is unstable. Delays to financial troubles in the lead up to a year and reduce capital spending.

The recent strengthening of the agricultural subsidies should benefit for the purpose of saving agricultural particularly dairy farming. To what extent this intention against the backdrop of the Russian operation structures (small farms in a land-big country?) successful, remains open for the time being.

The European-Russian relations are currently not conducive to an increase in commercial traffic. This can change as well. The EU has sufficient export potential in the dairy sector.

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