The Ministry of Agriculture against cheap milk?

Continuation to the "dairy" topic .

“On January 30, 2018, the Ministry of Agriculture and Food of the Republic of Mari El under the chairmanship of Minister Alexander Grechiho took place on the issue of the current price situation in the milk market in the Republic of Mari El.

The meeting was attended by a deputy of the State Duma of the Federal Assembly of the Russian Federation S.I. Kazankov , representatives of the Ministry of Agriculture of the Republic of Mari El, the Ministry of Industry and Trade of the Republic of Mari El, the Federal State Budgetary Institution of the Mari Institute for Personnel of Agribusiness Personnel and Milk Processors ” . http://mari-el.gov.ru/minselhoz/pages/20180201_1630.aspx

What happened?

In 2017, the Russian government invested 36 billion rubles in the dairy industry, but the market was not ready to increase the supply. Or maybe ready, but the purchasing power of the population leaves much to be desired, for many, solid cheeses and cream oil have moved into the category of delicacies. The Ministry of Agriculture of Russia does not bother that the remains of unclaimed finished products begin to accumulate in the warehouses: butter, cheeses, and milk fat -free milk.

In the Republic of Mari El alone, the growth in the production of dairy products amounted to more than 20%, in response to this the market reacted with a decrease in purchase prices.

And if we take into account that we are developing in market conditions, then a decrease in purchase prices should be followed by reducing milk prices in the store. Didn't we strive for this, building market relations?

In the Republic of Mari El, procurement prices decreased by an average of 17 % compared to last year. It would be logical to expect an adequate decrease in prices in the retail network, but not in our conditions, when there has been a clumsy market economy with state-planning management. The average purchase price of 1 variety of basic fat content 3.4% is 20.03 rubles/kg. If you take the neighboring Tatarstan with us, then there is a similar situation, but there purchase prices have decreased to 14 rubles. for kg. I think that none of the manufacturers would have raised any noise if the purchase prices rose even by 50%. The Ministry of Agriculture of Russia with its shouting requires raising purchase prices, thus acting against end consumers.