Russian consumers hit by soaring dairy and potato prices
Russians are cutting back on dairy products due to rising prices, according to the DairyTrader conference in Moscow.
Companies now face a further price increase, with an average of 5% expected in the coming months. However, this measure risks causing an even greater reduction in consumption, The Moscow Times writes.
One major market player cited butter as an example, saying it remains a difficult sell even with discounts, following last autumn's record price increase—the biggest in 17 years.
"We're seeing a drop in demand. It's slow and gradual, about 1-2% a month. It's a worrying trend, a bad sign—it means that purchasing power continues to decline," one speaker noted. "Demand for drinkable yogurts is falling, and I think it will soon be the same for spoonable yogurts."
The trend of reduced dairy consumption was confirmed by almost all conference participants. Currently, the greatest concern is the demand for cheese, which fell by 7% in July year-on-year, dairy processors reported.
Data from the "Tsenozavr" service shows that dairy products in Russia have become 24.3% more expensive on average over the past year. The largest price increases were recorded for butter (+38.5%), sour cream (+32.8%), and milk (+23.1%).
Liudmila Manitskaya, head of the Russian Dairy Union, attributed the price increase to inflation and rising production costs: more expensive feed, electricity, packaging, and logistics.
It was previously reported that Russians have also started to give up potatoes, after their price increased by more than 170% in one year, reaching a 23-year record for official statistics. For economic reasons, people have shifted to eating more bread, pasta, and grains, the Higher School of Economics' Center for Development says.
According to Rosstat data, as of August 25, annual food inflation in Russia was 9.94%, The Moscow Times notes.
Translation by Iurie Tataru
