Russia could increase milk production 3%, sunflower oil by 16.7% in 2023 - experts

MOSCOW. Nov 30 (Interfax) - Agro-industrial complex producers unions are predicting an increase in agricultural and food production this year.

In comments on his industry's results for the first ten months of the year presented Wednesday by Rosstat, General Director of the National Union of Milk Producers (Soyuzmoloko) Artyom Belov told reporters that milk production in Russia this year could increase 3% versus last year.

"By the end of the year, we expect a 3% increase in commercial milk production," he said.

Last year, 33 million tonnes of milk were produced.

As for the price situation on the market, he said that "despite the negative dynamics for raw materials prices at the start of the year, in the second half of the year prices began to recover. Since September, the price of milk has shown strong growth and has almost returned to 2022 levels, although the recovery is delayed in some regions," he said.

The recovery in prices for raw materials comes from a revival in domestic demand due to lower wholesale and consumer prices and rising household incomes, as well an increase in export shipments of dairy-intensive products, Belov said. Exports made it possible to unload stocks in warehouses. Another reason is the reduction of imports in certain categories to a minimal level, he said.

"All this reinforces the upward trend in raw milk production in the industrial sector," Belov said.

Production growth in the oil and fat industry is also predicted.

According to Mikhail Maltsev, executive director of the Fat and Oil Union, sunflower oil production this year could reach 7 million tonnes. "Seeing as domestic consumption is fully accounted for, over 4.4 million tonnes are planned for export," he said.

Rosstat data show sunflower oil production reaching 6 million tonnes last year. Thus, this year growth could reach 16.7%. Exports in 2022 totaled 3.3 million tonnes.

Based on the forecast from Sergei Yushin, head of the National Meat Association, production of meat and meat products this year may set another record, giving Russia another year in fourth place in the world for this indicator.

In 2022, Russian meat production totaled 16.2 million tonnes (in live weight, for slaughter).