Russia: Dairy and Products Semi-annual 2011

Russian milk production is forecast to rebound 1.5% in 2012 as feed supplies begin to replenish in the second half of 2011. In turn, as milk prices return to lower levels, local processors will direct more milk toward butter production. In 2011, butter production is revised downward, reflecting production to date. While Belarus remains the dominant as well as the GOR‟s preferred supplier of foreign dairy products, imports from all major suppliers have increased significantly in 2011 with rising retail prices. Russian production and trade-related policies will remain moving targets throughout the remainder of 2011 and likely into 2012 as the GOR continues to develop common regulations with its Customs Union partners as well as attempts to rebalance Russia‟s competitiveness in the market.