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Before the General Prosecutor's Office completed its check, companies like Wimm-Bill-Dann, Ekomilk, and others reduced milk prices back to their previous levels, explaining that there were no objective reasons for the increase, as stated by the supervisory authority. They were found guilty of making the decision to increase prices without economic justification. The General Prosecutor's Office emphasized that supervision over pricing for socially significant goods is carried out systematically, including during the pre-New Year period.
Wimm-Bill-Dann, the largest producer of drinking milk in Russia, had previously informed retail chains about a 3.4% increase in wholesale prices starting from November 1 due to the accelerated rise in raw milk prices influenced by external factors such as record-high wholesale prices and increased demand for high-fat milk for butter production.
Earlier, it was reported that General Prosecutor Igor Krasnov instructed to check milk prices after receiving information about price increases from producers. The check was carried out with the participation of the Federal Antimonopoly Service, the Ministry of Agriculture, and the Ministry of Industry and Trade. The General Prosecutor's Office noted that dairy products have special social significance, so economic entities should not unjustifiably raise prices and protect the rights of citizens.
Artem Belov, the CEO of the National Union of Milk Producers (Soyuzmoloko), noted that the current price situation in the ready-to-market dairy industry is influenced by various factors affecting the sector in recent years. He pointed out the increasing production costs due to rising expenses across all major items such as salaries (increased by 37% over two years), feed, energy resources, equipment maintenance, etc. Another factor has been the increase in the key rate of the Central Bank and rising loan rates. Belov expressed hope that milk product prices will stabilize considering the balance of supply and demand.
Alexey Gruzdev, CEO of Streda Consulting, also confirmed that the current rise in milk product prices is due to market factors. He noted that production costs are increasing throughout the chain and have already reached the retail level for butter. He pointed out that over the past two years, milk product prices were lower than inflation: in 2023, they increased by only 5.5%, while inflation was over 10%. Gruzdev emphasized that this year, price growth rates slightly exceed inflation.
Dmitry Leonov, Deputy Chairman of the Board of the Russian Union of Producers (Rusprodsoyuz), also highlighted that production costs of dairy products are increasing across the chain due to rising costs such as raw materials, logistics, loans, equipment purchase and maintenance, etc. He mentioned that the increase in shipping prices is only a few percent, much lower than official inflation.
