Vladimir Labinov, executive director at Russia's Dairy Union
Photo: Sergey Mikheev
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Agrarian Community Closed Ranks to Oppose Price Adjustment
Russia’s agrarian community stepped in to oppose government’s attempts to contain growth in food prices by administrative methods. Dairy producers closed ranks with the grain ones to protest against interference of authorities in the price formation and oil and sunflower producers are expected to join the league in the near term.
Russian Dairy Union has addressed Prime Minister Viktor Zubkov, seeking to prevent fixation of release prices of the manufacturers and the ban on the milk supplies to the nearby regions. The Grain Union and the agricultural producers voiced similar protests earlier.
First time after the collapse of the Soviet Union, the dairy makers claim, a chance has emerged on the milk market to ensure efficiency of dairy husbandry and to turn Russia into a big dairy exporter.
“What we say is that taking actions targeted at limiting prices for dairy products both at federal and regional levels is undesirable, as it will mean an attempt to again solve social problems of the population at the village cost,” Russia’s Dairy Union said in the address.
According to dairy producers they hiked prices for objective reasons and the increase was minimal. “We stepped up prices for certain products by 5 percent to 10 percent, as the prices for raw, petrol, electric power went up. At the same time, the suppliers increased extra charge by 40 percent,” said Olga Mitskevich from the First Dairy Plant (Ekaterinburg).
What’s more, the dairy plants foresee the loss of profits. Under the October forecast, the price for raw will grow by 95 percent vs this year’s July, said Anatoli Losev, financial director at Voronezh Molvest Holding, adding they cannot surge prices so abruptly, as the buyers need time to adjust to the increase.
www.kommersant.com
All the Article in Russian as of Oct. 17, 2007
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