September 15, 2014

Czech dairy suffers lossesfrom Russia's food ban

Czech dairy producers have lost at least 300 million crowns (about US$15 million) from the Russian food embargo on some western countries in response to sanctions over Ukraine.

Jiri Kopacek, chairman of the Czech Milk Producers Union, says that just a month ago, the Czech dairy industry was "developing fairly well" with very bright prospects in the Russian market.

The market was very promising that many of the country's dairy producers spent heavily on advertisements in various Russian media.

Now, with the embargo in place, these marketing losses could run up to US$2.5 million, Kopacek said.

Until the food embargo,Russia bought fluid and dry milk, butter and different cheese pastes from the Czech Republic.

On August 6, Russian banned imports of beef, pork, poultry, fish, cheeses, fruit, vegetables and dairy products from Australia, Canada, the EU, the United States and Norway in retaliation for the economic sanctions the US and the EU had imposed on Moscow for its involvement in the Ukrainian conflict.