The current state of the dairy industry market in Russia - the design of a dairy enterprise. Independent work
Russian market dairy products is constantly growing, the competition on it is intensifying. This is due both to the gradual increase in the well-being of the majority of the country's population, and the constant increase in production volumes by market players, as well as the emergence of foreign manufacturers in Russia. The market for dairy products is quite well studied, but not all information is open. Most of the published information contains data only on the largest market players, while in many cases it is necessary to have facts that illustrate the full picture.
This volume of production is growing steadily. Typically, milk production per cow in Canada has increased by nearly 100% over the past 40 years. Dairy processing industry. The dairy processing industry is vital to Canada's economy, ranking second in the agricultural and food sector after the meat industry. The industry employs approximately 20,500 people and generates thousands of jobs in related industries such as transportation, packaging, processing and marketing of dairy products.
The milk produced on the farm is sold to several dairies or processors. Milk is processed into two types of milk. Dairy liquid, including homogenized, partially skimmed, skimmed, skimmed milk, ultrafiltration milk, special dairy products, chocolate milk, butter butter and other types of creams. Another type is industrial milk or cream used in the production of other dairy products such as butter, cheeses, yogurt, ice cream.
The dairy industry is a branch of the food industry that combines enterprises for the production of various dairy products. The industry includes enterprises for the production of animal butter, whole milk products, canned milk, powdered milk, cheese, ice cream, casein and other milk products.
In recent years, there has been a decline in milk production in Russia. However, in 2008 there was some increase in production, which may be the beginning of recovery in this sector of agriculture. Thus, already in the first quarter of 2008 gross milk yields were 0.5% higher than in the same period of 2007 (Figure 1). This growth is due to the intensification of production, modernization of equipment and the transition to modern technologies maintenance and milking of livestock.
The dairy industry in Canada has seen significant rationalization in recent decades. Some companies have closed and others have come together to become more competitive and productive. This downward trend has continued for many years, but since then.
Dairy processing plants exist in all regions of Canada and are usually located in areas where milk production is concentrated. Liquid milk processing plants are typically located on the banks of urban centers to serve the consumer market. Factories that process long-term dairy products such as butter, milk powder, cheeses and whey powder are located in rural areas close to suppliers raw milk.
Rice. 1 Dynamics of milk production volumes (million tons) 2003-2008
Since the beginning of 2008, further growth in milk production has been noted in agricultural enterprises. In January 2008, 1016.4 thousand tons were produced, while the growth, compared to the same period in 2007, amounted to 47.6 thousand tons.
For several years, there has been a sharp decline in the number of large cattle, including cows. However, in recent years, the decline in livestock has somewhat slowed down. In 2008, the volume of the market for milk and dairy products in Russia amounted to $ 23.1 billion. It should be noted that in monetary terms, traditional dairy products accounted for only 65% of the entire dairy category. During the period from mid-2007 to mid-2008, there was a positive dynamics of market growth in value terms, while the growth rate was 12%. In general, the Russian dairy market is currently showing steady growth, but its pace has slowed down somewhat. The growth of the market was caused by the increase in sales of enriched kefir and cottage cheese - by 27% and 25% respectively in value terms.
From a regional point of view, the industry is concentrated in the central region of the country. Ontario and Quebec account for over 60% of all factories and about 75% of all industrial production. Ontario is the leader in liquid milk and ice cream, while Quebec is the leader in butter, cheese and yogurt.
There are three main organizational structures in the Canadian dairy processing industry. The most dominant are cooperatives owned by dairy producers, which account for about 60% of all industrial production. The balance is split between prominent foreign multinationals, which tend to be diversified food and consumer goods companies, and Canadian companies of varying sizes.
Compared to 2007, in 2008 the category "drinking yogurt" developed most dynamically on the domestic market - in volume and value terms, it grew by 12% and 25%, respectively. The growth of this category was mainly due to the development of the bioproducts segment. Thus, the segment "drinkable bio-yogurts" increased by 23% in real terms.
The largest processors are multi-factories that operate in two or more provinces and usually offer a wide range of products such as liquid milk, cream, butter, cheese, ice cream, yogurt, etc. for sale in the retail and catering markets. Dairy products such as cheese, butter, skim milk, condensed milk, concentrated milk protein are increasingly being sold as ingredients to processors to be used in the inclusion of a range of foods and non-food products.
Other processors tend to specialize in areas with few products or specific markets. For several years, the Canadian dairy industry has undergone a process of rationalization. Several industries are responsible for this trend, which appears to have started in the 1970s.
The growth rate of the cheese segment has recently been about 15-20% per year, but in 2008, due to an increase in duties on the import of this product, the market development rates slightly decreased.
The analysis of the volumes of Russian production, as well as imports and exports of dairy products, was carried out on the basis of processing customs statistics databases. In domestic practice, the following parameters are traditionally used to characterize the path of goods through customs:
First, the specialization of dairy farms and the reduction in transport costs allow the consolidation of dairy processing companies. In addition, provincial government programs are encouraging consolidation by paying small processors to close their doors.
Stagnation or decline in production has also been another important driver for processor consolidation, as it means an increase in market share. Mergers have found that they can reduce overcapacity, pool resources and skills, and cut costs with fewer but larger, more efficient factories. The decline in the number of factories was similar in both liquid milk and industrial milk.
sender country - the country from which the goods were exported, the place of the last customs clearance;
recipient country - the country into which the goods are imported;
shipping company - a company that delivers from the side of the importing country;
company-recipient - the company that is the recipient of the goods;
statistical value of the goods - the amount in dollars for which the goods were imported from a particular country or for the reporting period as a whole; the weight of the imported goods in kilograms. The total volume of imports of dairy products in 2008 amounted to 396.8 thousand tons in the amount of $ 843 million (table 1). It should be noted that more than half of the volume of imports, both in kind and in monetary terms, was the import of cheese.
Another factor is the consolidation of companies in the retail sector. Retailers are now demanding more products from their suppliers than in the past. To meet this demand, processors must increase production. In addition, since retailers currently have establishments in more than one province, processors should also follow this trend and expand their market in different provinces.
Finally, the globalization of the market also influences this trend of rationalization, as Canadian companies need to actively compete with foreign companies in both local and international markets. It is worth noting that mergers and acquisitions have been largely responsible for the decline in the number of dairy processing companies and factories in Canada. In the rationalization of the Canadian dairy industry, an important market segment has been left vacant for large companies. These segments include niche markets for ultra-specialized cheeses.
Table 1 - The volume of imports of products in 2008
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Product types |
Import volume |
Share in total imports |
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|
in physical terms, kg. |
in value terms, $ |
in kind, % These niches are a large number of small companies, often factories producing artisanal cheeses. With the exception of large companies, more than 160 dairy processing enterprises are registered at the federal level. These businesses usually manufacture products for local markets. Also in the past, Canadian processing companies have operated primarily in regional markets. With rationalization, they expanded their market territory to the level of a province. The emergence of multinational corporations in the early 1990s also seems to have influenced Canadian companies in the process of rationalization. |
in value terms, % |
|
In 2008, the total volume of exports of dairy products in physical and monetary terms amounted to 175.4 thousand tons and $ 203.6 million, respectively (Table 2).
As a result, dairy industries are increasingly concentrated in the hands of a few. In addition, some firms have developed partnerships or corporate links to handle, distribute, and market specific products. Since then, Parmalat has acquired several other companies or their divisions. Parmalat was Canada's largest dairy company by the end of 2000. The following table provides lists of the best dairy companies in Canada.
The rationalization of the number of processing companies and factories has been accompanied by new investments since the beginning of the nineties, which have nothing to do with any other major branch in the food industry. Institutions are now larger, more efficient, and show more automation in processing and packaging equipment.
Table 2 - The volume of exports of products in 2008
|
Product types |
Export volume |
Share in total exports |
||
|
in physical terms, kg. |
in value terms, $ |
in kind, % Source: Canadian industry - industry expectations - liquid milk and other dairy products. Canadian Dairy Cooperatives are dairy farmer-owned businesses that process and market produce and are run by professional teams. These organizations allow producers to be more involved in the marketing process as their milk goes straight from the farm to consumers. In provinces where milk marketing agencies do not exist, cooperatives serve as gateways for milk production by their members. |
in value terms, % |
|
|
Milk and cream, uncondensed without added sugar | ||||
|
Milk and cream, condensed or with added sugar | ||||
|
Buttermilk, curdled milk and cream, yogurt, kefir and other products They are an important part of the Canadian dairy industry in all provinces. Despite their large numbers in Quebec, dairy cooperatives are also very important in the central provinces, British Columbia and the eastern provinces in terms of the amount of industrial milk processed. Until the early 1990s, Canadian cooperatives operated primarily in local markets. In recent years, they have become actively involved in the rationalization process by acquiring or joining other companies, often located outside their home province. | ||||
|
Milk whey and other products | ||||
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Butter and other products | ||||
|
Ice cream containing milk fat | ||||
In 2008, about a third of all exports, both in kind and in value terms, accounted for the segment "Buttermilk, curdled milk and cream, yogurt, kefir and other products." Significant shares belonged to such products as milk and cream, condensed or with added sugar - in volume and value terms, this segment occupied 20.7 and 22.9% of dairy products exports, respectively. Also, a significant share of exports was occupied by the segment "Whey and other products" - in physical and monetary terms, respectively, 26 and 14.6%.
In recent years, the cooperative has acquired several companies, which allowed it to be present at this cooperative in 8 provinces of Canada. This cooperative was sold to Saputo in the early 1990s. Thus, the share of the Canadian market for dairy cooperatives could decline significantly.
Canadian dairy revenues vary by region and by product line. Competition appears to be greater in Canada's central markets, especially in Ontario, where a large number of firms are involved. In Ontario, liquid milk and ice cream lines represent the most difficult areas to turn a profit. As in other sectors of the food industry, private sector strategies to produce low-margin brands that compete with the most established brands in the market can affect profits.
Despite the decrease in the production of whole milk, the market for dairy products in Russia is growing. First of all, this is due to the expansion of product lines, the emergence of new types and tastes of dairy products, and their enrichment with additional properties. For the period from January to September 2008, the volume of production of whole milk products amounted to 7.6 million tons.
In the Canadian market, product development, packaging innovations and improved processing methods are seen as critical to increasing sales and reducing production costs. Ordinary joint ventures between processors and universities or research stations of agriculture and agri-food Canada, such as the Research Center for Research in Saint-Hyacinthe, Quebec, are common. Most of the research developed in Canada is focused on product development activities and improvement of processing technologies, but much attention is paid to the development of research activities in other countries.
Among the largest manufacturers represented on the Russian market of dairy products, it is worth noting the following players: OJSC Wimm-Bill-Dann Foods (Moscow, ТМ Bio Max, Neo, Agusha, Cheerful Milkman, House in the Village) , "Kubanskaya Burenka", "Lamber", "M", "Our Doctor", "Red Up", "Miracle"), Unimilk group (TM "Bio Balance", "Doctor Brand", "Summer Day", Petmol, Prostokvashino, Selo Lugovoe, Tyoma, Shadrinskoye) and the Danone group (TM Actimel, Danette, Activia, Danissimo, Rastishka, Skeletons).
The creation of a category of microfiltered milk that receives a premium price is a prime example of the innovative efforts of the Canadian dairy industry. As in other parts of the country's food industry, product development is driven by considerations related to health, price, quality and taste. The consumer desire for low-fat products while maintaining the same taste characteristics is a major problem in the development of dairy products in North America and Western Europe.
The study and characterization of the properties of milk components for food applications are also Canadian research priorities, as these compounds are analyzed in terms of the production potentials of "functional products". The industry is being followed by other food manufacturers working with packaging firms to develop more creative packaging, showcasing high quality designs as a tool to increase market share. However, both the requirements for packaging produced by the dairy industry and recycling and environmental considerations are driving innovation in the dairy packaging industry in Canada.
Wimm-Bill-Dann owns 37 processing plants in Russia, Georgia, Central Asia and Ukraine. Last year, Wimm-Bill-Dann's market share in physical terms amounted to 26%. As for the financial performance of this market player, in the first half of 2008, the revenue of the milk division increased by 43.4% compared to the same period in 2007 - from $ 598.4 to $ 858.4 million.
The Unimilk group includes 29 dairy enterprises in Russia, including Petmol OJSC (St. Petersburg), Milko OJSC (Krasnoyarsk), Samaralakto OJSC (Samara), and two in Ukraine. Unimilk products are sold in Russia, Kazakhstan and Ukraine. The group's market share in 2008 was 15%, while, compared to the previous year, revenue increased to $ 840 million, and sales amounted to more than 1 million tons.
The Danone group, which in 2008 owned 7% of the dairy products market, is represented in Russia by two dairy production plants: in the Moscow region and in the city of Togliatti. In 2008, the company's revenue amounted to $ 561 million. It is worth noting that 90% of sales are accounted for by the brands Activia, Actimel, Danissimo and Rastishka.
Consider the ratio of imports and exports in different segments of the dairy products market. In 2006, the segments "Butter and other products" and "Cheese" had the largest share of imports (Table 3). In the segment "Milk and cream, not condensed and without added sugar", the share of imports also prevailed, however, the preponderance in its direction was not so significant. In the segments "Milk and cream, condensed or with added sugar", "Buttermilk, curdled milk and cream, yoghurt, kefir and other products" and "Ice cream containing milk fats" exports dominated. In the "Whey and other products" segment, the shares of import and export were comparable.
Table 3 - The ratio of imports and exports of dairy products
|
Product types |
in kind |
In value terms |
||||
|
Total volume of import-export, kg. |
Import, % |
Export, % |
Total volume of import-export, kg. |
Import, % |
Export, % |
|
|
Milk and cream, uncondensed without added sugar | ||||||
|
Milk and cream, condensed or with added sugar | ||||||
|
Buttermilk, curdled milk and cream, yogurt, kefir and other products | ||||||
|
Milk whey and other products | ||||||
|
Butter and other products | ||||||
|
Ice cream containing milk fat | ||||||
Along with imports and domestic production of dairy products, a separate type of organization of production is observed: the opening of factories of foreign manufacturers in Russia. So, according to RBC, the production of sterilized milk and fresh dairy products under the Valio brand will begin at the facilities of Galaktika LLC, a new plant being built on the territory of Gatchina Dairy Plant OJSC near St. Petersburg. This situation is quite interesting both from the point of view of further development of the domestic market, and from the point of view of creating additional jobs, as well as the influx of foreign investment into the country's economy.
Since the early 1990s, Russia has seen a steady decline in the share of domestic dairy production and an increase in the share of imports. Thus, since 2000, the share of imported products has increased from 20 to 40%, and this figure continues to grow.
Consolidation of companies in the industry can be noted as one of the main trends of recent years. In the coming years, we can predict the strengthening of integration processes in the milk processing market at the regional and federal levels. At the same time, a form that has become widespread is the purchase of controlling stakes in both processing enterprises and agricultural producers of dairy raw materials.
Over the past 15 years, milk consumption in the country has declined significantly. If in 1990 consumption was 370 kg per capita - at a rate of 390 kg, now it has dropped to 240 kg.
According to a study in 2008, only 33% of city residents bought milk daily. At the same time, 22% of respondents do not buy, and 21% do not drink milk at all.
Dairy products are in stable consumer demand. The most popular are yogurt, kefir and cottage cheese - these products are chosen respectively by 38, 29 and 21% of Russians who consume fermented milk products daily (Figure 2).
Rice. 2 Consumer preferences by types of fermented milk products
An analysis of consumer preferences suggests that older people are more likely than young people to buy traditional fermented milk products. The main consumers of these products are people aged 30 to 40 years. Thus, 27% of respondents in this age group drink kefir at least twice a week. Among young people under the age of 20, only 17% use this product 2-4 times a week.
Cottage cheese is the least in demand among young respondents - no more than 15% of respondents under the age of 30 consume it regularly. Among consumers aged 30 to 40 years, 60% of the population often eat this type of traditional fermented milk products.
Currently, there is a positive trend in the growth of the dairy products market. In general, Russian dairy market demonstrates steady growth, but the rate of this growth has slowed down somewhat.
In the coming years, the market volume will increase, and, most likely, both due to an increase in the share of Russian production, and due to imports. The domestic market of dairy products is characterized by fierce competition in all segments. According to forecasts, major players will continue their policy of "absorption" of regional producers.
An increasing number of consumers prefer pasteurized milk. In addition, in general, the attitude towards milk as a cheap product is changing. In this regard, some manufacturers rely on raising the status of their product, focusing on such characteristics as naturalness, environmental friendliness and high quality.
According to the forecasts of marketing agencies, in the next ten years the consumption of traditional fermented milk products such as kefir, sour cream and cottage cheese may decrease by 10-15%, while the consumption of yoghurts and dairy desserts, on the contrary, will increase.
The most important recent trend in the dairy market is the growing popularity of "live", non-terminated yoghurts with a shorter shelf life.
Regarding the range of dairy products, the following trends will be observed in the near future:
increase in the share of branded products;
growth of the product range;
the emergence of non-traditional innovative products;
increase in the share of products with a long shelf life.
As for the packaging of dairy products, according to experts' forecasts, the following trends will be observed:
increase in the share of packaged oil sales;
emergence and introduction of innovative types of packaging - portion packs, "family" packs, packs with spoons;
growth in the share of portion packaging in the segment of liquid dairy products
milk microbiological ryazhenka cottage cheese
The dairy industry is a branch of the food industry that combines enterprises for the development of products from milk. At the same time, the possibility and uniqueness of the scale of production of dairy products have determined and continue to determine the size of humanity, its genetic and creative potential. In terms of nutritional properties, milk is the most perfect type of food; compound nutrients it is almost perfectly balanced. (Ivanova S.V., 2013)
Modern dairy plants or factories carry out complex processing of raw materials, produce a wide range of products, are equipped with mechanized and automated lines for bottling products into bottles, bags and other types of containers, pasteurizers and coolers, separators, evaporators, cheese makers, automatic packaging products.
A significant share of Russian milk is intended for processing and production of dairy products.
The dairy complex is one of the most important components of the agro-industrial complex, the main task of which is to meet the needs of society for dairy products at a certain level of income of the population.
The most important factors for the growth of market volumes are:
Growth trend in real incomes of the population;
Market capacity potential associated with the low current level of consumption of dairy products compared to the level of consumption in European countries;
Interest in healthy lifestyle life;
Commitment of the population of Russia to dairy products.
These factors are the source of the increase in demand for dairy products in the near term. (Labinov, V.V., 2013)
The demand for dairy products is satisfied by Russian and foreign producers, and the share of imports in certain market segments is steadily growing. Therefore, an additional opportunity to expand the market for domestic companies is import substitution.
The Russian dairy market is actively expanding the range of dairy products provided. Experts predict a gradual decline in the consumption of traditional dairy products (sour cream, fermented baked milk, curdled milk) in favor of enriched modern products (bio-kefir, bio-milk, bio-yogurt). Any dessert dairy products that people consume not to satisfy hunger, but for pleasure are also promising. And this is primarily due to the increase in the income of the population. The total volume of these products will grow not only due to an increase in the number of new consumers, but also due to an increase in the frequency of consumption by regular customers of this category of products. (Ermakova, E.E., 2014)
As for the analysis of the market for milk and dairy products in Russia, the market for dairy products is developing and growing, and, accordingly, competition in it is intensifying. This is due to many factors, namely, the constant increase in production volumes by market players, the appearance of factories of foreign manufacturers in Russia and the gradual increase in the welfare of most of the country's population.
The milk market, according to experts, is highly competitive. The trends of this market is the process of "branding" the market for dairy products. There are large enterprises and holdings on the market that have their own high-tech equipment, funds for marketing activities and a dealer network. It is not surprising that small firms or factories are being squeezed out because of such enterprises.
Due to the lack of funds necessary for the modernization of production, the expansion of the sales network, the geography of supply, the creation and advertising of the brand, local companies are often uncompetitive. Every year, large producers absorb an increasing number of small regional producers. Due to the fact that large enterprises have a solid financial and industrial foundation and, moreover, are well oriented in the market, it is more profitable for many small producers to join them than to act independently. From the foregoing, it can be predicted that in the future a small number of the largest producers will produce dairy products, because today they already occupy a large market share.
Summing up, we can say that the Russian dairy industry market is also characterized by good growth prospects, but rising prices and uneven market expansion will create, on the one hand, many opportunities for key players in the dairy supply chain, and on the other hand, many problems. (Ivanova, S.V., 2013)
