The market of milk and dairy products in Russia: peculiarities, tendencies and prospects of development

The dairy industry is of particular importance for the economy and population of Russia. In the dairy industry and related industries employs more than 21 thousand organizations and more than 1.2 million people, milk and dairy products to 15% of the turnover of retail trade networks. In the 90 years the production of milk and dairy products is characterized by significant decrease of production and by 1999, the decrease amounted to 45,16%. The result of research of market of milk and dairy products: production declined faster than consumption of milk and dairy products. In 1990, per capita consumption of milk and dairy products was 370 kg per year, in 2014 this figure was only equal to 243 kg. The decrease in consumption of milk and dairy products is a result of lower real incomes. Constant excess consumption of milk and dairy products on total volume of production over a long period of time led to the growth of imports. The volume of imports in the period between 1990 and 2014 has increased by 11.84%, while in 2014 the volume of imports decreased by 3% compared to 2013. The sanctions imposed in August 2014, could not ensure rapid growth of production volumes of milk and dairy products in the country. The main reasons for low production of milk and dairy products in Russia, according to experts are: shortage of raw materials, long investment cycles in dairy cattle, the increase of production costs of milk and dairy products, low level of profitability of the dairy industry; low purchasing power of the population, reducing the number of existing enterprises of the dairy industry.