March 17, 2008

Russia's imports of meat, milk powder grow
 

Russia's increased imports of meat and milk powder in the past two months cut the prices of locally produced natural milk by RUB1.5 (US$0.06), and raised the share of imported meat in the domestic market to 46 percent.

Russia's Agricultural Minister Alexei Gordeyev reported this to Prime Minister Viktor Zubkov while they were visiting a cattle-breeding farm near St Petersburg.

The production cost of milk was RUB12.5 (US$0.53) to RUB13 a litre (US$0.55). It was sold to dairy farms at RUB17 to RUB20 (US$0.72-US$0.85). Prices have gone down due to increased imports of powdered milk, said Gordevev. A kilogram of milk powder cost RUB140 (US$5.97) in the summer. Now it only costs RUB90 (US$2.13).

Dairy farms began to buy milk powder instead of natural milk from producers because 1 kilogramme of powder yields 7 litres of milk, said the Minister.

Pork is sold at RUB40 (US$1.70) a kilogram of live weight to attract consumers. Imported pork and beef, with prices falling, have better quality.

Prices of domestic meat in Russia have been stable despite rising production costs.