India signs dairy export protocol with Russia

India has recently signed a protocol with the Russian Government for exports of dairy products within the country.

By signing this agreement, India may eventually start exports of dairy products largely cheese to Russia. According to sources, the first consignment is expected to leave Indian ports by the end of June.

Estimated at 2, 30,000 tonnes, Russia’s hard cheese supply was met largely through imports from European countries. But, since restrictions were imposed on dairy products import from Europe in retaliation with the economic sanctions levied by European countries, the hard cheese import was diverted from South America and neighbouring Russian markets including Belarus etc.

Due to stringent quality norms, Russia was desperately looking out for the alternative supply of hard cheese from Asian countries and India being the largest milk producer in the world will have an opportunity to penetrate some Russian dairy market share.

In 2014, Russia announced the opening of its dairy product markets for Indian exporters in December 2014, coinciding the visit of its President Vladimir Putin. But, due to the strict conditions laid down by Russian phytosanitary authority Rosselkhoznadzor.

After the visit of around two-dozen factory premises and facility of milk procurement in India, the Rosselkhoznadzor officials concluded that farms with less than the herd size of 1000 cattle would not be allowed to export dairy projects to Russia. Therefore, only 2 dairy farms were eligible in this norm which includes Parag Milk Foods and Schreiber Dynamix.

 According to Industry Sources, Russian authorities had liberalised some norms to accommodate more Indian players in dairy exports. Instead of herd size of 1000 cattle size, the Russian authorities focus on traceability of milk, procurement and on the quality of cheese India produces.

Apart from dairy products export, Russia would be able to pay some premiums compared to other export destinations which would help raise prices of skimmed milk powder (SMP) and other products which have been under tremendous pressure for over 18 Months. Once dairy farms begin to get higher return, they would pass on to farmers for milk procurement. So, farmers would benefit ultimately.

INOXPA being a leading manufacturer of dairy process equipment see this as a good opportunity for the dairy industry. INOXPA has been serving its clients in dairy industry for more than 40 years by offering them a wide range of effective and hygienic solutions for a high quality dairy production.

Our product ranges are:

1. Centrifugal Pumps
2. Positive Displacement Pumps
3. Mixing Equipments Such as Mixers, Blenders and Agitators.
4. Valves and Fittings.
5. Skids: pasteurisers, milk reception units, fermenting units, etc.

For more information on product or any query, please write to us at inoxpaindia.sales@inoxpa.com !