Decline of prices for cheeses, which was observed in Russia in April, was slowed down in the first half of May. But the general tendency is not changed yet – cheeses continue to become cheaper.

The authorities still hope for miracle but milk prices will probably fall further – milk become unclimed. Prices for commodity product has also not reached a bottom yet.

New Ministry of Agriculture make the first active actions in dairy direction. Fight against substitution of milk fat by plant oil is increasing. New minister Alexander Tkachev wants very much to separate the products with non-dairy substitutes from dairy products on shop shelves, and that on Eurasian Economic Community scale. The Ministry of Agriculture of Russia already developed the amendments in Technical Regulations. Now they pass coordination in Russian Federal Service for Supervision of Consumer Rights Protection and Human Welfare and in the Ministry of Economic Developmant.

It seems the demand and prices for milk and dairy products will fall further. It is good idea, but it will be interesting to look at the result of this separation on shelves. Consumers will probably become more distrustful to quality of dairy products. After all, many Russians do not know that buying cheap cheese and butter, they in most cases buy cheese product and spread. And after ban, the supply of these products was considerably increased. Only in first months of this year, Russia increased import of palm-oil by 40%!

It seems the demand and prices for milk and dairy products will fall further.

infagro.com.ua