The results of the Second Congress of Russian milk producers and processors

The 2nd Congress of Russian milk producers and processors took place in Moscow on March 14. During the meeting SOUZMOLOKO has demonstrated the results of successful cooperation between market participants and the government as well as the benefits of consolidated approach in the industry. The opening speech was delivered by the First Deputy Prime Minister of Russia Viktor Zubkov and the Chairman of the Board of SOUZMOLOKO Andrei Danilenko.

The participants in the Congress consisted of owners and managers of different milk production and processing companies in the Customs Union, representatives of other, with dairy associated companies and associations, top government officials of Russia, Belarus and Kazakhstan. The Congress was also attended by the Russian Minister of Agriculture E.Skrynnik, the Head of Russain Rospotrebnadzor G.Onishchenko, the Minister of Agriculture of Belarus M.Rusiy, the Vice-Minister of Agriculture of Kazakhstan S.Khasenov and others.

Over 500 attendees participated in the congress in order to discuss the development prospects of the Russia’s strategically important industry. The Congress was organized by SOUZMOLOKO.

During the meeting two important documents were signed. First document is the cooperation agreement between SOUZMOLOKO and Rosagroleasing, signed by company’s CEO V.Nazarov and SOYUZMOLOKO Chairman of the Board A.Danilenko. The agreement gives the opportunity for union members to purchase machinery, equipment and breeding livestock on favorable terms. «Presently Rosagroleasing is one of the most flexible financing tools for dairy industry», said A.Danilenko.

The second document signed is the cooperation agreement between SOUZMOLOKO and MICEX Group. According to this agreement the first dairy trading platform in Russia will be set up. At the initial stage milk powder spot trade is planned. Later on the product range will be expanded and futures contracts trading will be launched. The first bidding is planned in the 2nd quarter of 2011.

First Deputy Russian Prime Minister Viktor Zubkov considers it possible, that in the future the subsidy level received by milk producers will depend on produced milk volume and not on the number of cattle, as it is happening now.

He also noted that the priority in receiving state support, in the future will be given to companies, aiming at reducing production costs through the implementation of innovative technologies.

The Minister of Agriculture of Belarus M.Rusiy said «The main purpose of cooperation within SOUZMOLOKO is to improve the situation in the dairy industry, to boost the quality of milk and to increase the industry’s investment attractiveness. We are successfully cooperating with SOUZMOLOKO since last June, and our further cooperation plans include the establishment of the union, which will bring together milk producers and processors within Customs Union».

SOUZMOLOKO Chairman of the Board A.Danilenko in his speech noted that «During the Congress it became clear that the Union brings together not only Russian but also the whole dairy industry of the Customs Union. The union manages to run the constructive dialogue with both the government and market participants of three states. During the Congress current industry problems and solutions were discussed; and the agreement with MICEX Group without doubt is a new stage in the development of the Russian dairy industry, public trade of dry milk will make the market stable and transparent for all its participants».