The Rosselkhoznadzor press service announced that butter shipments from Turkey have begun arriving in Russia.
Butter deliveries from Turkey started in late October, and initial trade data show a shipment of around 20 tonnes having entered the market by the end of that period.
Russia also began importing butter from India and Iran as part of a broader effort to diversify supplies.
Oil prices increased by a quarter
The 20-tonne import from Turkey is modest against Russia’s overall annual butter consumption, which sits in the ballpark of 450,000 tonnes for the prior year. Observers note the move may reflect concerns over recent price movements in the domestic market.
Retail butter prices have risen considerably, with year‑to‑date increases running in the mid‑to‑high teens percentage range earlier this year and continuing to grow in recent weeks. Weekly movements also indicate added price pressure, while purchase prices have climbed from late summer onward according to trade statistics.
Alongside price changes, there has been a shift in consumer behaviour. Some households have turned to home churned butter, while incidents linked to the rising cost of butter have been reported in several cities, including thefts at local shops where price pressures have been felt.
Milkmen sound the alarm
Price pressure in the butter segment is attributed to rising costs across the entire production chain, from raw materials to processing. This trend is echoed by industry observers who point to sustained cost increases.
In the most recent period, butter costs were notably higher than previous year levels. Wages, raw material costs, and financing charges all rose, while inflation and maintenance expenses for equipment also contributed. Industry analysts note that price growth has followed a period of tighter pricing controls.
Overall, the year‑over‑year increase in butter prices remains balanced against the broader rise in food costs. The year’s end witnessed a modest annual uptick, even as the category has continued to outpace some other staples. Analysts collar the primary drivers as higher costs for imported inputs, packaging, and logistics, combined with the profit margins of retail chains, which remain substantial.
Forecasts caution that prices could rise further if demand strengthens more than supply can accommodate. The butter market volume for 2023 is estimated at about 450,000 tonnes; seven months into 2024 show sustained demand growth, with a further uptick visible in the latest data.
Meanwhile, import volumes have diminished over the past few years, a trend that has been confirmed by international trade data. In earlier years, Russia imported tens of thousands of tonnes annually, but recent periods show much lower figures for many suppliers.
Government promises price reduction
The surge in butter prices prompted a high‑level meeting between officials and business representatives to map out stabilization steps for the domestic market.
The outcome included directives aimed at stabilizing butter prices and ensuring steady supply. Officials discussed expanding imports from multiple countries and highlighted ongoing government support measures such as affordable working capital, investment financing, and favorable leasing for producers.
Officials stressed that every effort would be made to prevent a slowdown in the production of raw materials and finished products.
The market has shown signs of stabilisation in recent weeks as imports rebounded and demand growth cooled, according to participants at the meeting.