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Competition Pushes Local Milk Out

RUSSIA - Milk producers in Primorye are concerned that cheaper milk from the Amur region is pushing local milk out of business.

At the moment, milk from the Amur region is around 20 rubles (0.4 pence)cheaoper than the milk produced in the coastal region.

Vice Governor of Primorye, Sergei Sidorenko, said that whilst this is not critical, action should be taken now to save local agricultural production and he was concerned that prices were being deliberately distorted.

Mr Sidorenko said that if local producers were to lower the price of their milk, producers, processors and retailers could lose out.

In the next few weeks a meeting will take place to look at how the industry can lower prices.

Source: The dairy site
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