The press service of Rosselkhoznadzor reported that Turkey has begun to supply butter to Russia.
“Butter supply from Turkey to Russia started on October 27, 2024. “According to FSIS Vetis data, 20 tons of butter were imported from Turkey to Russia as of October 29.” TASS department message.
Moreover reportedRussia began importing butter from India and Iran.
Oil prices increased by a quarter
The supply of 20 tons of butter is insignificant compared to the volume of consumption in Russia, which is estimated at 450 thousand tons in 2023 (Soyuzmolok data). Rosselkhoznadzor probably responded to numerous media reports that butter prices have increased significantly in Russia.
With data As of October 28, Rosstat has increased the price of butter in retail sales by 25.7% since the beginning of the year. In the period from October 22 to October 28, prices increased by 1.9%. The price of butter in purchases has increased by 31 percent since the beginning of September, should do From data from the Retail Trade Association.
The increase in butter prices has led to an increase in the demand for homemade butter churns. writes Puree. The sharp increase in the price of butter has also led to an increase in crimes related to it. Two men in Moscow stolen They took 25 packs of butter from the capital’s shop and beat an employee who tried to stop them.
Milkmen sound the alarm
Butter prices have increased due to the increase in production costs along the entire chain, from raw materials to processing. reported Press service of the National Union of Milk Producers (Soyuzmoloko).
“The cost of butter in August was 16% higher than the previous year: employee wages increased by 24%, raw material costs increased by almost 20%, the cost also increased due to the increase in the credit burden and general inflation is growing, there is an increase in service costs and existing repairs of equipment and machines” said the National Milk Producers Association (“Soyuzmoloko”) and listed the reasons.
The association announced that the price increase was “the result of the price increase rate being kept under control for two years.”
“At the end of 2023, the price of butter increased by 3.5 percent, while the price of food products increased by 8.9 percent on average,” the organization said.
The main factors affecting the oil price include the increase in the costs of imported raw materials, packaging and logistics, as well as price increases in retail chains. reported Dmitry Leonov, Deputy Chairman of the Board of TASS Rusprodsoyuz Association.
“Prices are also affected by the increase in the key interest rate, staff shortages and problems in servicing foreign equipment. Do not forget about the profit margin of retail chains, which on average is over 70%,” said Leonov.
Prices may also rise due to increasing oil demand that production cannot meet.
“The volume of the butter market in 2023 is estimated at 450,000 tons; “According to the seven-month results of 2024, demand increased by 7 percent, we see an increase of 2 percent again.” – said Artem Belov, General Director of Forbes Soyuzmolok.
At the same time, butter imports to Russia have fallen fourfold in three years, as evidenced by the UN database of international trade statistics, which RTVI points out.
“If foreign countries exported 38.5 thousand tons of butter to Russia in 2021, then only 9 thousand tons in 2023 and 7 thousand tons in the first 8 months of 2024” – reports TV channel.
Government promises price reduction
The sharp rise in butter prices prompted Deputy Prime Minister and former head of the Russian Ministry of Agriculture Dmitry Patrushev to hold a meeting with representatives of the business community and government departments.
“As a result of the meeting, some instructions were given to the relevant units in order to stabilize butter prices in the domestic market.” reported On the Russian government website.
There, instructions were given to intensify imports from many countries. During the meeting, Patrushev emphasized that government support measures such as concessional working capital and investment loans, as well as concessional leasing, are already provided to industrial workers.
“Therefore, the government is doing everything possible to prevent a slowdown in the production of raw materials and processed products,” Patrushev said.
The situation on the butter market has begun to stabilize over the last few weeks as imports have increased and demand growth has slowed down. stated At the meeting of Artem Belov.