Russia’s FAS Will Check Retail Chains for Overpricing of Dairy Products

Russia’s FAS Will Check Retail Chains for Overpricing of Dairy Products
Photo: unsplash.com 05.06.2023 467

The Duma believes that retail chains unreasonably inflate the cost of dairy products.

The deputies of the State Duma Committee on Agricultural Affairs addressed to the FAS with a request to check the trading networks for overpricing of dairy products. This is reported in the Russian media with reference to the text of the letter. The FAS confirmed receipt of the appeal and is currently working on it.

The document, sent by the FAS deputies, notes that in 2023 the purchasing prices of raw milk have fallen sharply. Its cost is 15-20% of the previously contracted prices.

The deputies attribute the fall in prices to the complication of the foreign policy and economic situation, the increased rate of inflation and the decline in real incomes of the population. As a result, people began to buy cheaper dairy products.

At the same time due to "weak domestic and external demand", exceeding the planned supply volumes by 14% and the Union State offers, stocks of dairy products have formed in the warehouses. In 2022 the increase in stocks was about 38%, said the Agrarian Committee.

Deputies believe that the pricing policy of retail chains hinders the growth in consumption of dairy products and demand. The Duma Committee noted that the margins are 40-70% and above, and for high-margin products - up to 100-150%. Because of this, the cost of raw milk is reduced, while the price for the consumer increases.

Oleg Nilov, first deputy chairman of the State Duma Committee on Agrarian Affairs, pointed out that purchase prices of milk "fell not by 1 or 2%, but by several tens", up to 17 rubles ($0,21) per liter. At the same time the price of milk in the stores reaches 80 rubles ($0,9). The deputy called this situation strange.

Earlier, "RIA Novosti" with reference to data from the Center for the Development of Advanced Technologies reported that in the first quarter of 2023, the most expensive dairy products in Russia were cheese and cheese products. Their cost per liter / kilogram was 760 rubles ($9,3). The top most expensive dairy products also included cottage cheese — 687 rubles ($8,5).

Source: Vedomosti

food markets  Russia 

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