The agriculture Ministry has sent the government a proposal to regulate the price of milk. Close to the Ministry source explained that we are talking about interventions in the dairy market by analogy with the grain market.

The mechanism implies that the government purchases from producers surpluses of products (usually in summer), and then sells it in case of an insufficient (usually in winter). This allows you to avoid seasonal price spikes for products.

Executive Director of the National Union of milk producers Artem Belov said that the volatility of prices for raw milk throughout the year in some regions is about 30%. He said that intervention need not in all areas of the country. "Regulation is needed in 10-15 regions with the highest volatility. This is Altai, Bashkiria and other", — said Artem Belov.

He also said that in contrast to grain for intervention on the dairy market the government will purchase recycled products, which is stored for several months. This dry milk, nonfat dry milk and butter.

The interventions will allow to equalize the prices of raw materials during the year and due to their predictability, to increase the investment attractiveness of the industry, noted Artem Belov.
 

"Accordingly, the volume of supply will increase. Will increase competition, and in the long term this will contribute to lower prices, including the consumer", — said the expert.

The report of the Ministry of agriculture noted that Russia, a decrease in the consumption of dairy products, including in connection with the increased cost of production. According to Rosstat, last year milk and dairy products rose by 9.5% – almost double inflation (to 5.4%).

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