IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 12 Mar 2013 | Removal date: 11 Aug 2013
Still in force

Production subsidy

 
On March 12, 2013, the Government of the Russian Federation approved with Resolution Nr 337 the disbursement of federal subsidies to the listed regional and provincial authorities. In turn, the latter will provide milk producers with reimbursements of expenses related to production and marketing of milk.
 
The disbursement of these federal subsidies is part of the sub-programme 'Development of the livestock subsector, processing and marketing of livestock products' of the State Programme for Development of Agriculture in 2013-2020. It amounts to RUB 9.56 Billion (USD 314.74 Mio.), which constitutes 100 per cents of the assigned for 2013 subsidy.
 

The purpose of these state subsidies are to alleviate a difficult situation faced by the Russian milk production and processing sector. Andrej Danilenko from the National Union of Milk Producers explains that the negative development of the sector is a consequence of rising prices of raw milk since 2012, due to reduced number of milking cows (and respective decrease of produced milk volumes) provoked in turn by a deficit (and respective increasing prices) of mixed fodder and fodder grain. As a result, the Russian milk producers started experiencing losses. Danilenko further stated that the crisis on the local milk market led to an increase in milk imports; his import forecasts for 2013 are for 11 million tons, compared to the 2012 historical figure of 9 million tons. The subsidies planned could well reverse the increases in import penetration.

 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

221 Processed liquid milk, cream & whey
0401 Milk and cream, not concentrated nor containing added sugar or other sweetening matter.
040110 Of a fat content, by weight, not exceeding 1 %
040120 Of a fat content, by weight, exceeding 1 % but not exceeding 6 %
040140 Of a fat content, by weight, exceeding 6 % but not exceeding 10 %
040150 Of a fat content, by weight, exceeding 10 %
0404 Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included.
040410 Whey and modified whey, whether or not concentrated or containing added sugar or other sweetening matter
222 Other dairy products
0402 Milk and cream, concentrated or containing added sugar or other sweetening matter.
040210 In powder, granules or other solid forms, of a fat content, by weight, not exceeding 1.5 %
040221 Not containing added sugar or other sweetening matter
040229 Other
040291 Not containing added sugar or other sweetening matter
040299 Other
0403 Buttermilk, curdled milk and cream, yogurt, kephir and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or other sweetening matter or flavoured or containing added fruit, nuts or cocoa.
040310 Yogurt
040390 Other
0404 Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or other sweetening matter, not elsewhere specified or included.
040490 Other

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