Southern Russia raw milk material prices are 8-10% above the national average, as per Konstantin Sinetsky's statement.
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In the Krasnodar region of southern Russia, milk prices are higher than the national average, primarily due to increased costs for agricultural machinery. According to Konstantin Sineckii, this situation is largely attributed to government-imposed recycling fees on imports and the lack of affordable, high-quality domestic equipment [2].
The high costs of farm machinery and limited access to efficient equipment have resulted in increased operational costs for milk producers, leading to decreased productivity [2]. Moreover, the challenges in timely harvesting and processing due to suboptimal machinery availability are critical issues in dairy farming.
These rising costs are ultimately passed on to consumers, causing milk prices to be above the national average. Meanwhile, processing enterprises in the region are under pressure to manage these cost increases while maintaining product quality and market competitiveness.
In the Krasnodar region, approximately 900,000 tons of raw milk are processed locally, with the remaining tonnage being taken by enterprises in neighbouring regions such as the Rostov region, Adygea, Karachay-Cherkessia, and Stavropol [2].
As of the first half of 2025, direct milk producers in the Krasnodar region are producing around 890,000 tons of milk, and the region as a whole produces approximately 1.7 million tons of raw milk annually [2]. According to Konstantin Sineckii, the household sector in the Krasnodar region is responsible for producing this amount of raw milk annually [2].
Despite the rising production costs, direct milk producers in the Krasnodar region find the current prices to be satisfactory for maintaining profitability. However, it is important to note that these high costs are a concern for the long-term sustainability of the dairy industry in the region.
In conclusion, the steep increase in import-related fees on agricultural machinery, combined with limitations in domestic machine quality and availability, directly elevate farming costs and thereby milk prices in Kuban and similar southern Russian regions [2]. As such, it is essential to address these issues to ensure the long-term viability and competitiveness of the dairy industry in these regions.
The high costs of agricultural machinery in the Krasnodar region, primarily due to increased costs for imports and the lack of affordable, high-quality domestic equipment, have a direct impact on the finance sector, causing milk prices to be above the national average. These elevated milk prices affect the business community, putting pressure on milk producers to maintain profitability while balancing operational costs, product quality, and market competitiveness. In the Krasnodar region, the dairy industry faces long-term sustainability concerns due to these cost issues.
