Localisation for Russian Dairy Industry

Against a background of a devalued ruble and high inflation rates, the Russian dairy industry may be characterised as undergoing a period of localisation, according to Emily McCormack from the Moscow office of Bord Bia, the Irish Food Board.According to the Russian Ministry of Agriculture, milk production in Russia increased by 0.1 per cent in 2014 to 30.8m tonnes. Regions such as Altai and Bashkortistan recorded the highest increase in milk production. Soyuzmoloko, the National Union of Dairy Producers, in a plan for the Russian dairy industry to 2020 state that they aim for domestic production to account for 78 per cent of the share of domestically available dairy, an increase on current levels of 66.5 per cent. The Russian dairy industry is, however, in much need of reform. With milk quality and production levels both needing improvement, the industry continues to rely on imports to serve demand.

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