Rules of state support can be changed for milk producers in Russia
Against the background of dairy market in Russia the first news were discussions concerning the draft regulation on Modification of Rules for granting of subsidies from federal budget to budgets of regions.
This regulation is directed to facilitate the access to state support for milk producers against the import embargo and milk deficiency. The Ministry of Agriculture suggests the agricultural producer «to not reduce the volume of milk production, number of cows or goats. Those producers who have average yields above 7000 kg, can decrease them by not more than 5%. Other criteria which are in force now: fat and protein content, annual calf crop, yields per cows, etc – will be abolished.
It is interesting that both branch unions of Russia which always have different views on the events, agreed in opinion this time.
National Dairy Producers Union Souzmoloko: ‘the changes offered by the Ministry of Agriculture will lead not to increase of farms efficiency, as the authors of the bill declared, but to falsification of data on livestock and production’.
Russian Union of Dairy Enterprises: ‘subsidies per 1 kg of produced milk should receive the effective farms producing high quality milk. Thus, there will be no “dilution” of money between all producers’.
The regulation had to be in a force from January 2017, but after the dairy unions interfered, adoption of it is in doubt.