Pridnestrovie to impose special customs duties on import dairy products

05/26/15 16:33

Pridnestrovie to impose special customs duties on import dairy products

The corresponding decision has been approved today at the government session

We shall remind you that the urgent introduction of such measures has been supported by both dairy producers and milk processing factories. This is conditioned by the critical situation in the industry: the devaluation of national currencies has made Moldovan and Ukrainian milk products imported by Pridnestrovie so cheap that local products have become quite uncompetitive. Correspondingly, the sales volume has dropped as well. «Since import raw materials have become cheaper, our milk products are 10−20% more expensive than those imported.

«For example, the sales volume of one of the biggest processing factories, the Tiraspol Milk Factory, had dropped from 10 million roubles in January to 7 million in April, that is, the sales had fallen by almost 30%," said Andrei Kirsta, minister of agriculture and natural resources.

As a result, the procurement price for milk has been reduced nearly twofold (to 2−3.5 roubles per litre). Consequently, milk production has become quite unprofitable, and the whole industry of cattle breeding, which employs approximately 15,000 people, is under threat now.

«For rural population it is the only source of livelihood," underscored the chairwoman of the government, Tatyana Turanskaya.

«Besides, Pridnestrovie's food security is also under threat because, in case no protective measures are taken, we will risk becoming fully dependent on import dairy products," added Dmitri Boltrushko, deputy minister of economic development.

As a result, the government has taken the decision to impose special customs duties (temporary) on import dairy production, which will equalise prices for import and domestic products and create conditions for fair competition.

The duty will also be imposed on import mineral water, carbonated soft drinks and some confectioneries (those produced in Pridnestrovie).

 

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