Russia investigates surging butter prices amid supply woes
In Russia, the issue of rapidly rising butter prices has become serious enough to draw the attention of the highest authorities. The prosecutor's office has decided to investigate the cause of the sharp increase in the cost of this essential food product.
According to Reuters, the investigation into butter prices will be conducted by the Federal Antimonopoly Service, the Ministry of Agriculture, and the Ministry of Industry and Trade. Everything is overseen by Prosecutor General Igor Krasnov, who initiated inspections in dairy plants.
Measures to protect consumer rights and counteract unjustified price increases will be taken if irregularities are found. However, the situation in the Russian dairy sector is not without basis, as the rise in milk fat prices affects not only the Russian Federation, as reported by farmer.pl.
Changes in the global dairy market also impact prices in the European Union, the Middle East, and North Africa. As Reuters highlights, butter prices in Russia have risen by as much as 26% over the year, mainly due to increased production costs, including raw milk.
Food price inflation in Russia and Ukraine is further influenced by the ongoing conflict between these countries and rising labour costs, which Russian dairy plants particularly feel.
Interventions by the Federal Antimonopoly Service led to talks with Deputy Prime Minister Dmitry Patrushev, after which Russia decided to start importing butter from countries like Turkey and the United Arab Emirates.
This sparked some controversy because the list of imported products also included butter from Ukraine, although its share in the Russian market remains marginal.
Butter prices in Russia are rising
Russia has long imported milk fats, although this does not drastically affect the sector's overall situation, which largely exports processed products such as cheese and ice cream. After the embargo on food from the EU, Russia initially replenished the missing supply by importing from New Zealand and Argentina, but trade with these countries has significantly decreased in recent years.
Currently, Russia is sending more and more dairy products to China, Kazakhstan, and Egypt, which further burdens domestic supply.
Russia currently ranks seventh in the world (approximately 32 billion kilograms) and second in Europe after Germany (approximately 33 billion kilograms) in terms of raw milk production. The price increase is so severe for Russians that butter blocks in stores have begun to be placed in anti-theft packaging. On October 29th, a case of "robbery" was recorded at a "Pyaterochka" supermarket in Moscow, where two foreigners stole 25 packages of butter.
According to "The Moscow Times", despite this, butter is not the product experiencing the highest price increase in Russia. Data from the statistical office shows that since the beginning of the year, potato prices have risen by 56.4%.
