Yogurts in Russia are getting more expensive output followed by the Volga Federal District – 7.7% and the Siberian Federal District – 5.8%. As a result, in largest cities, including Moscow and St. Petersburg, as well as in remote regions of Siberia and Far East the prices for yogurts are 15-20% higher compared to the European part of Russia. In general, Kirillov suggested that price will be one of the most important factors which determine the future of the Russian yogurt market over the next odd years. 70% of Russian citizens are saving money on food, according to recent study of the Russian Higher School of Economics, and even amid continuing quality scandals in the market Russians may keep purchasing yogurts if prices would be more attractive. Unclear future after lifting of the embargo Meanwhile, at St. Petersburg’s International Economy Forum in May, several Russian dairy producers warned the Russian government about the threat of a possible lifting or weakening of the food embargo, including the yogurt segment. Manufacturers are scared with recent steps of authorities with the cancellation of the ban for import of dairy products destined for children consumption and call on officials to put an end to the restrictive measures against European food companies. In particular, speaking at St. Petersburg’s Forum, general director of one of the largest Russian dairy producer Molinvest, Anatoli Losev, explained that there are several dozens of projects in the country, developed under the current market conjuncture, and with the lifting of the sanctions the country may lose up to 20-30% of capacities for yogurt production. "If we talk about certain segments that would be under attack: it is yogurt and cheese producers. In my opinion we will lose 20% of internal yogurts production and up to 20-30% of cheese capacities" – he indicated. In Losevs opinion, the decrease of consumer demand and the uncertainty around the food embargo are among the main factors which are concerning manufacturers of yogurt. He called the government to determine some certain position on the food embargo. "If they government would lift it in two months, I would not launch anything new, but if there would be left two years from now, I will definitely enter into some new projects. This changing of market conjuncture will produce problems to me, my bank and actually to everyone involved" – he explained. At the same time, according to the pressservice of Russian Agricultural Ministry, the demand of dairy producers can not be fulfilled, since the food embargo depends fully on the sanctions issued by Western countries against Russia and this position is not likely to change over the coming years. As the result, it is hard to say who is benefiting now from the current situation in the yogurt market. Consumers with less income have to opt for products with suspicious quality, while manufacturers are in limbo over the uncertain market future. The Stabiliser People Hydrosol at Gulfood Manufacturing 2016 7-9 November 2016, Dubai, U.A.E., Stand SA28 We do what it takes for your yogurt. Whether Greek yogurt, skyr or high-protein, Hydrosol develops tailor-made stabilising systems. Use our fresh ideas to open up new markets for your cultured dairy products. Produce innovative yogurt products and take them to market faster with the applications service provided by our specialists. • Tailor-made stabilising systems • Texture management and formulation recommendations • Training in our modern Technology Center • Applications technology service from our experts, personal and on-site Telefon + 49 / (0) 41 02 / 202-003 info@hydrosol.de, www.hydrosol.de
IDM_09_2016
To see the actual publication please follow the link above