Russian Government plans to support dairy industry amid pandemic

Despite the growth in milk and dairy products production, by the end of 2021, self-sufficiency in the country is 84%, while the threshold limit, according to the Food Security Doctrine, should be 90%.

The issue was discussed at a meeting in the Russian Government. The economic consequences of the pandemic affected the dairy industry: prices for feed, veterinary drugs, and electricity increased. Thus, in the third quarter of 2021, the growth in the cost of milk production amounted to 17% compared to 2020, while revenue increased by only 14% for processors and 12% for producers, according to the Ministry of Economic Development of the Russian Federation.

Measures of state support restrained the situation - only 10.6 billion rubles were allocated to subsidize the cost of feed.

In 2022, the Government intends to continue the policy of state support for the industry - the budget includes stimulating and compensatory subsidies in the amount of 54 billion rubles. (similar to 2021 volume).

Self-sufficiency in dairy products at the end of 2021 amounted to 125% in Bashkiria - a quarter more than the norm. Milk production over the past year increased by 3-5% and reached 760 thousand tons. All types of farms, including private households, produced more than 1.6 million tons of raw milk in 2021.

The production of cheese and cottage cheese in January - November 2021 increased by 3.2%, milk powder and cream - by 11.7%.

Last year, the volume of state support for dairy farming in Bashkiria amounted to about 877 million rubles. Of these, more than 254 million rubles. — subsidies for reimbursing part of the costs per 1 kg of cow or goat milk sold or processed at our enterprises; the source of financial support was compensatory subsidies from the federal and republican budgets.

Stimulating subsidies for the purchase of feed additives to enterprises that ensure the growth of milk were issued in the amount of 113.7 million rubles.

Subsidies for the purchase of feed for the regions of the Trans-Urals from the republican budget amounted to 75 million rubles.

434.3 million rubles were paid to reimburse part of the costs for purchasing feed for enterprises that keep and breed dairy cattle.

Over the past five years, 15 investment projects in the food and processing industry worth 9 billion rubles have been implemented in Bashkiria. They were provided with state support for 270 million rubles, not counting tax benefits. The companies’ revenue during this time amounted to 23 billion rubles.