logo
1, Institutskaya Square, Omsk, Russia, 644008 Show on the map

Banning palm oil can cause a sharp rise in price of milk

April 10, the Ministry of Agriculture of Russia has come out with an initiative to completely prohibit the use of milk powder and vegetable fats in the production of dairy products. This is, first of all, the palm oil, which is most often used in the production of food. This is due to economic benefits - it is 3-4 times cheaper than milk.

 

Industry experts generally support this initiative, but consider it prudent to refrain from radical steps. Palm oil today is allowed to be used only in milk-containing products, and there are many such products on the market. According to Rosstat, in 2017, 182,000 tons of cheese products and 235,000 tons of curd products were officially produced. In addition, vegetable fats are legally used in the production of kefir products (Russian national sour-tasting drinks make from cow's milk fermented with certain bacteria), desserts, ice cream.

 

If a radical ban is still adopted, there may be negative consequences for the market, and consumers will feel the price increase. According to Marina Petrova, deputy chairman of the Committee for Entrepreneurship Development in the Agroindustry of the Moscow Chamber of Commerce and Industry, in this case, dairy products will simply disappear from the market, and prices will increase by at least 50-70%. A sharp drop in production volumes while maintaining constant producer costs can lead to a 100-percent growth. A further fall in real incomes of citizens with an increase in prices will cause a decline in sales of dairy products and many manufacturers will have to stop the business, she believes.

 

Based by dairynews.ru.

  • Omsky Biocluster Press Service
  • 13 April 2018