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«Petrova Five Consulting» - Belarusian producers need a long-term strategy

Marina Petrova, general director of Petrova Five Consulting, one of the leading experts on the Russian dairy market, said this at the II Belarus Belarus Dairy Export Forum. Talking about the situation that arose in the Russian dairy market after the embargo was introduced, she emphasized the many market opportunities that opened up for Belarusian producers and a significant share of the supply of dairy products from the Republic of Belarus in total imports.

According to Petrova Five Consulting, despite the introduction of economic sanctions, the Russian dairy industry has not yet been able to switch to real import substitution and continues to stagnate - milk production in 2015 decreased by 0.1% compared to 2014, and cattle stock fell by 3,3% At the same time, the share of imports in key and most profitable segments exceeds 60%. In the cheese and butter segment, the import share is 29%, in the whey powder segment - 55%, and in the milk powder segment - 62%. The share of deliveries of dairy products from the Republic of Belarus in 2014-2015 increased and in many segments exceeds 90%. Thus, the share of deliveries from Belarus in the total import of milk powder is 96%, milk whey - 97%, cottage cheese - 99% and drinking milk - 98%.

At the same time, against the background of the economic crisis and the decline in real incomes of the population, as well as the growth of falsification, not only supply, but also demand in many segments decreased on the Russian dairy market. Thus, the market volume of cheese decreased by 22%, butter - by 7%, and consumer demand shifted to the mass of cheap products. According to Marina Petrova, the ongoing market transformation opens up opportunities for Belarusian producers to replace rejected European dairy products, but it also requires considerable effort, as Russian consumers are accustomed to high-quality products and well-known brands.

“In the current situation, Belarusian producers will have an effective strategy for the supply of bulk products at low prices, but they should be prepared for the fact that in a year, when the Russian economy begins to emerge from the crisis, demand for niche and more expensive products will increase,” said Marina Petrova. “Therefore, if Belarusian enterprises are committed to long-term work in the Russian market, they already need to work on quality stability, development of their own brands and the formation of loyalty of Russian consumers.”

II Export Forum "Belarus Milk" held in Minsk today. The forum discussed the problems and trends of development of the dairy industry of the Republic of Belarus, the Belarusian export potential of the dairy industry and the possibility of developing new markets. Also, great attention is paid to improving the quality and efficiency of production, development of brands and marketing tools work with consumers.

The forum was attended by First Deputy Minister of Agriculture of the Republic of Belarus Leonid Marinich, Deputy Agriculture Minister Igor Bryl, Head of Foreign Economic Activity of the Ministry of Agriculture Alexei Bogdanov, executive director of "Soyuzmoloko" Artem Belov, heads of dairy enterprises and leading experts of Belarus, Russia , Ukraine, Kazakhstan, Lithuania, Poland, Denmark and Finland.

INFORMATION ABOUT THE COMPANY

Petrova Five Consulting is a Russian consulting company specializing in dairy market research, as well as in the development, market launch and branding of dairy products.

Contact

Natalia Kurbakova

Communication Agency "Co-communication"

Tel. (495) 585-09-64

e-mail: tat@co-mmunication.ru

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