Russia: Dairy and Products Semi-annual
Given the volatility in the Russian market (e.g., the economic situation in Russia, trade restrictions, etc.), annualized dairy production and consumption remains difficult to forecast in 2015. FAS/Moscow anticipates Russian milk production will decline to 29.5 MMT in 2015 due to a forecasted drop in the country’s milking herd given the current economic situation and an anticipated reduction in wholesale prices for fluid milk in late 2015 (due to a potential abundance of supply when compared to reduced demand). The 2015 production forecasts for cheese (700,000 MT), butter (235,000 MT), and NFDM (75,000 MT) have all been reduced due to an expected decrease in consumption, while WMP is projected to remain relatively flat (48,000 MT). Imports of dairy products are expected to decline due to falling demand given the weakened ruble.
