Dairy producers, processors and the government are partnering up in order to improve the investment attractiveness of the industry

The merged company Danone-Unimilk and the National Dairy Producers Union SOUZMOLOKO in the presence of Russian Minister of Agriculture E. Skrinnik signed the market price monitoring agreement.

Understanding the current situation in the market and the ability to forecast is essential for the effective functioning of the market, budget planning and investment decision making. Under this agreement SOUZMOLOKO undertakes to perform systematic market price monitoring as well as produce reports containing analysis of current prices and the twelve-month forecast of indicative base prices. The results should reflect expert opinion in light of global trends and domestic situation in the dairy industry.

Russian Minister of Agriculture E. Skrinnik:

«The signed agreement is another result of successful cooperation between milk producers and processors. All market participants are in need of timely price monitoring and analysis of the current market situation. I believe that indicative prices provided by SOUZMOLOKO ensure acceptable profitability of the industry as well as its investment attractiveness».

Chairman of the board of SOUZMOLOKO Andrei Danilenko:

«According to the experts of SOUZMOLOKO, taking into account the increase in production costs, the average monthly indicative base prices should be in the range of 12-16 rubles (excluding VAT) per 1 kilogram of first grade raw milk (3,4% fat , 3,0% protein content). The factual base prices in the regions may deviate from the mean in either direction depending on the milk production seasonality and supply and demand balance in particular region».

General Manager of Danone-Unimilk Filip Kegels:

«Danone-Unimilk currently is the largest producer of dairy products in Russia. We are interested in establishing long term partnerships with all market participants and we hope that this agreement will facilitate stable development of the sector and will improve efficiency of milk production and processing. The price forecast prepared by SOYUZMOLOKO seems to be fair and it will allow us to estimate our production costs more accurately».