by Alexei Alexeev
In recent years Russia's milk production has been falling, while the import of milk and dairy products has substantially increased. Dairy-based enterprises must compete fiercely to survive. This situation is especially serious for businesses processing agricultural output, since local producers try to sell their products themselves rather than turning it over to processing enterprises.
Fortunately 1996 demonstrated that Russia's economy started to stabilize, and in a number of regions the output of dairy products began to rise, while the import of dairy products started to decrease. Novosibirsk Oblast stands among the top ten regions as a main producer of dairy products in Russia and one of the biggest east of the Urals. At present more than 30 enterprises produce various kinds of dairy products in Novosibirsk Oblast.
Currently, dairy products with long-term expiration dates, feasible for long distance transportation, are not produced in Siberia. Such products, imported from European Russia, European Community, and other foreign countries, successfully compete with local production on all regional markets.
Progress in the use of new dairy production technologies will
enable reduction in dairy product costs, which should translate
into further development of the milk market and an expansion of
the dairy products sector. There are both a clear demand for investing
in the milk production sector and ready opportunities for foreign
investors and entrepreneurs.