Russia can get by without dairy market interventions in 2017 - AgMin
MOSCOW. Dec 20 (Interfax) - Russia's dairy industry is now developing at a satisfactory rate and the country might be able to do without dairy market interventions next year, First Deputy Agriculture Minister Dzhambulat Khatuov said in the State Duma.
"We're working very closely with Rosrezerv [the federal agency for state reserves] as we close the year, and think that our joint work will enable us to make effective use of state support measures next year and possibly get by without interventions," he said.
"State-of-the-art, concerted effort, along with measures being taken by Rosrezerv, will make it possible to eliminate the tense situation at dairy processors that operate for a certain period using accumulated inventories," Khatuov said.
The dairy intervention mechanism has been prepared in full. "Conducting them will make it possible for agricultural producers during the 'big milk' period not to lose three-four - and in some regions even five - rubles per liter, which ought to remain with them," he said.
The Agriculture Ministry expects to conduct purchase interventions on the market in dry milk and butter in 2017. In addition, interventions are possible on the liquid milk and cheese markets.
Of the 30.8 million tonnes of milk produced last year, agricultural enterprises accounted for 49%, family farms for 7% and households for 44%. The marketability of the milk (the amount supplied for processing) is 66%, including 94% for agricultural enterprises, 70% for family farms and 34% for households.
Cattle stalls for all farm categories increased by 69,000 in 2015, while the cattle population declined by 68,000 head. "This decline is occurring against the backdrop of fairly effective state support," Khatuov said.