Danone has said it is benefiting from the ongoing dispute between Ukraine and Russia over cheese imports.
Alexander Prishepa, milk sourcing director of Danone’s Ukrainian unit, told just-food the ban on some Ukrainian cheese products in Russia has pushed down milk prices.
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Prishepa said the ban has led Ukrainian cheese producers to lower their production, which has resulted in more milk being available on the market.
“Because of this we see that the prices for raw milk are starting to decrease,” he said.
Last month, Russian consumer goods watchdog Rospotrebnadzor barred imports of cheese made by three Ukrainian producers.
The watchdog claimed the companies used excessive quantities of palm oil, said to be a cheaper substitute for milk. As a result, Russian authorities removed the banned Ukrainian cheese products from retail outlets across the country over their failure to meet Russian milk standards.
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By GlobalDataRussia accounted for 80% of Ukrainian cheese exports last year, or US$350m in revenues, according to Ukrainian business weekly Delovaya Stolitsa.
Critics have suggested that the ban is a result of Russia protecting its own cheese production.
