Dairy farmers fear cheap Russian products will flood into the country

After wheat, Kazakhstan may see an influx of milk from Russia, FAO expert Stepan Ten said. He believes that Russian producers will begin to offer milk on the Kazakhstani market at lower prices, World of NAN reports citing inbusiness.

Today, Russia has a milk surplus of about 2 million tons and it could seriously affect the dairy market in Kazakhstan, especially if Russia starts actively exporting surplus raw materials.

"Everyone knows that the smuggling of 2 million tons of grain from Russia has collapsed the market in our country. In 2022, wheat cost 180 thousand tenge per ton, and in 2023, the price fell to 90 thousand tenge. A similar story may happen with milk. Over the past two months, the cost of milk in Russia collapsed by 4 rubles to 30-32 rubles. And the exchange rate of the tenge to the ruble has also changed significantly. And if you multiply it by the exchange rate, Russian farmers will send their milk to processing plants in Kazakhstan at this price. If the state closes its eyes to such imports, as well as with grain, it could bring down the dairy market in our country," says Stepan Ten.

According to the expert, the collapse of the dairy market at this point may lead to uncontrollable consequences. It is easy to restore the grain production: you sow in spring and harvest in autumn. But if someone wants to give up the dairy business and put the cattle under the knife, it will take several years to restore it.

"I think the government should think about what will happen if the Russians bring their milk to us. And what to do about it. To close the border, as I understand it, is to make sure that only official cargo passes through it. So that it goes through all the procedures at customs and payment of VAT, then it's legal. But if they will bring milk, as well as grain under the guise of empty trucks, and in fact the grain, which at the elevators turns into Kazakhstani. This could cause a lot of trouble," Stepan Ten added.

If Russian dairy producers illegally import their raw materials into Kazakhstan, this will lead to a glut on the market and a drop in prices for dairy products in Kazakhstan. And collapse of prices may lead to irreversible consequences for dairy farmers.

Recall that a year ago farmers were saying that imports of dairy products were growing in Kazakhstan, despite an increase in milk production. And heads of dairy farms talked about the difficult situation in the market. Experts say Kazakhstan still cannot fully provide itself with dairy products. Much is being done: livestock is being increased, feed base is being formed. But the result leaves much to be desired.

Смотрите больше интересных агроновостей Казахстана на нашем канале telegram, узнавайте о важных событиях в facebook и подписывайтесь на youtube канал и instagram.