November 27, 2007

Russia's milk output seen up by 2.8 percent this year

Russian milk production this year is projected to increase by 32 million tonnes, up 2.8 percent from the previous year, however it will remain below the country's target outlined by Russia's National Priority Project for Agriculture.

According to the US Department of Agriculture, Russian milk production is seen up slightly in 2008 as imported dairy herd will replace low-yielding domestic cows. High grain prices is also seen to hurt the industry with dairy prices, which saw increases in the start of the year, will also intensify until 2008.

The Russian government has pressured local producers to freeze prices in an attempt to stabilise soaring food prices. Strong local demand will call for more pedigree cattle and bovine genetics as the country gears for increased productivity by using better generic stock.

For more of the USDA report, please click here