Here comes the collapse of dairy production in Kazakhstan

Russia will increase the compensation of exporters of dairy products for their transportation costs from January 1, 2024 from 25% to 100%, World of NAN reports.

The document defines milk, cream, whey, butter and cheese as priority for transportation.

"The increase in support is dictated by the growth of long term storage stocks of dairy products formed at processing plants, resulting in lower purchase price from milk producers. Thus, transportation stimulation will help to avoid negative trends in the domestic market," the Ministry of Agriculture of the Russian Federation said in a statement.

Thanks to this increased support, Russian enterprises will be able to gain an advantage on foreign markets; in general, all this will contribute to an increase in the volume of supplies and diversification of sales channels, as well as reduce stocks and stabilize the situation on the domestic market.

Naturally, this will have a negative impact on milk producers and processors in Kazakhstan. Cheap products from Russia will simply displace domestic goods and leave them without income.

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