Russia to curb dairy exports if prices keep rising, official says
Butter prices grew 17%; egg prices almost 30%
23 January 2025
2 minute read
By: Lowering domestic food prices is a priority, a senior Russian official said on Wednesday, warning dairy farmers and companies that the state would curb exports if prices keep rising, according to Reuters.
Deputy Prime Minister Dmitry Patrushev said recent spikes in prices for staple foods such as butter could have been avoided if producers had acted earlier by preparing for higher demand. High prices have prompted a spate of butter thefts at some supermarkets.
"If the situation does not favour the stability of our own market, you are all well aware that we have the leverage to influence it. This includes export restrictions," Patrushev told the congress of milk producers.
"Once again, I must emphasise that the priority for the state is absolutely clear: ensuring that our citizens have their own food supply," he added.
Full-year inflation of 9.5% last year forced the central bank to raise the benchmark interest rate to 21%, the highest level since the 2000s. In 2024, butter prices grew 17%, and egg prices almost 30%.
President Vladimir Putin asked the government on Wednesday to ensure an uninterrupted domestic food supply. The government has sought to curb agricultural exports through higher duties and export quotas.
Russia has become a major exporter of foods such as pork and dry milk in recent years and is the world's top wheat exporter. Before the recent food price spikes, Putin set a goal last year to increase agricultural exports by 50% by 2030.
"You must agree, it would be unpleasant for everyone to suddenly lose the (export) markets we have struggled to conquer together for so many years," Patrushev said.
A poor 2024 harvest due to bad weather in key agricultural areas added to high state spending and spiralling wage growth, fuelling inflation, which has topped the list of economic woes in public opinion polls.
