The union lacks political authority to lobby additional 70 bln rubles support.

According to Andrey Danilenko, Chairman of the Board of Souzmoloko, to maintain dairy farming development it’s necessary to provide 5 rubles per liter subsidy. This measure will allow to shorten dairy projects pay-back period to 8 years and to reach 38-40 mln tons of production within 8 years while implementing the State Program. Maximum possible growth is 3-5% per year, the expert estimated. Production will reach 40 mln tons only in 22 years – 39.92 mln tons in 2035.

Annual volume of milk processing in Russia totals approximately 13 mln tons – Souzmolokodata. I.e. to support the sector by 5 rubles per liter around 70 bln rubles is needed. The Ministry dismissed Souzmoloko request to allocate additional 70 bln rubles due to limited budget. The Ministry rests upon the Department of Animal Husbandry and Breeding information, which denies milk deficiency in the country, resumes Andrey Danilenko.

Source: Argentine Beef Packers S.A.