Dairy producers in Russia have warned of a price increase of almost 10% in February 2022. The warning was issued by the manufacturer Danone.
According to Kommersant, citing a letter from Mike Tignol, Danone's Vice President of Sales in Russia, exchange prices for dairy products at the end of 2021 broke all records. Butter with a fat content of 72.5% went up in price by 45% to 430 rubles per kilogram for the year, skimmed milk powder increased in price by 35% to 250 rubles per kilogram.
Danone also recalled the rising cost of logistics (+6.7%), as well as the price of packaging (+6.9%). In the first quarter of 2022, the cost of raw milk in Russia will increase by 17%, dairy producers warned.
In the first six months of this year, prices of sugar and sweeteners are expected to rise by 11.6%, fruit and berry fillers will rise by 7.4%. Valio reported that in 2021 the price increase is due to the imbalance of supply and demand.
In particular, the industry is affected by climate change, exchange rate fluctuations and labor shortages. The average increase in the cost of raw milk at the end of 2021 was 15-20%, Valio said, while raw materials rose in price by 15-30%.