Russian Government may stimulate milk production

Low milk prices in Russia are reportedly forcing some producers to cull their cattle in order to reduce costs. According to the Russian Union of Milk Producers, 200,000 animals have been culled in the first six months of the year, equivalent to 2.1 % of the total milking population. This is due to poor returns, which are now below the cost of production, according to Russian farmer groups. In an attempt to stabilise prices the Russian Government has hinted that it is preparing to offer an intervention scheme for dairy products to encourage farmers to continue producing and growing the domestic industry and make the country less dependent on imported dairy products.

However, unlike the EU and US, Russia does not produce a surplus of milk powder, so it may instead purchase ultra heat treated (UHT) milk under an intervention system . In order to avoid a surplus of stock building in the country, which would be likely to delay any price recovery, it is proposed to donate the milk to school children.