Articles

Dairy Products Market: State and Development Prospects

Authors:

Nikolaeva M.A.

Abstract:

The article presents the study results of the dairy products market using two criteria − the state of the dairy market saturation sources and the nature of demand. The author gives a dynamics analysis of milk and dairy products domestic production, as well as its exports and imports. In 2017 (by July) the cattle population decreased by 0.9% compared to 2016, while the milk yield increased to 4221 kg per year on average in the country. The author determines the product range structure of the dairy market as a whole: pasteurized drinking milk (20,8 %) and fermented milk drinks (21,4 %) dominates; the second is curd and cheeses, the third – ice cream, the fourth-butter. Pasteurized and ultra-pasteurized milk with fat content of 1 %, 2.5 and 3.2 % dominates the milk range. There is lack of milk with high fat content of 6 and 9 %. The authors developed the classification of the dairy products market segments and sub-segments such as: the market of drinking milk and cream, ice cream market, cheese market, market of dairy products, market of milk cans. The domestic production, import and export volume of dairy products depends on the demand nature. The main consumers of dairy products, exported from Russia are the CIS countries (91%): Kazakhstan (45% of total exports), Ukraine (16 %) and Belarus (12 %). The author revealed the satisfaction degree of domestic needs at the expense of domestic dairy production. There are current problems of the dairy market, including the problem of the products counterfeit: the share of counterfeit butter – 58 %; cheese – 12 %; curd and milk − 6 %, sour cream − 5 %. The researcher advises to solve this problem by strengthening control over the quality of all dairy products while accepting goods in trade organizations, conducting scheduled and unscheduled inspections, tightening administrative responsibility for the counterfeit dairy products production and sale. The perspective directions of the Russian dairy market development are determined.

Keywords:

market; milk; dairy products; market segments and sub-segments; milk and dairy products assortment; domestic production; export and import of goods; demand; market saturation sources