The Ministry of agriculture, according to its Director of the Department of animal husbandry and breeding N. Aberkhanov recognizes that the ongoing dairy intervention is unprofitable… if we are talking about the price of 30 rubles per liter of milk.
At the same time, such intervention is done and scheduled for the current year. “We don’t know what awaits us in April, May, June and July, in this case, if the price drops, it is necessary to carry out”, – said A. Amerkhanov.
The purpose of food interventions is to improve seasonal price fluctuations. In fact, the concept of “intervention” means a method of state regulation of prices for agricultural products. In the case that prices in the food market fall below the estimated rate, the government either buys the product from farmers (purchasing interventions), or conducts mortgage operations, buying product on the exchanges. In addition, the state may intervene in the agricultural market by limiting the importation and exportation of agricultural products. The estimated rates for intervention are fixed by Federal authorities not later than in March.
Sources: Consultant.ru, Russian Ministry of Agriculture
