The French dairy giant Danone is set to transport almost 5,000 Holstein cows to Siberia from the Netherlands and Germany.
Transportation is scheduled for the end of September. The animals will be transported by trucks from Europe to a farm near Tyumen (they will travel 4.5 thousand km). It is expected that the European livestock will give the first milk in the spring of next year.
The Russian representative of Danone explained that the company plans to reduce the cost of production and, accordingly, to contain the price increases caused by Russian counter-sanctions.
The French company hopes that price increases can be stopped or at least slowed down by next year, not only for milk, but also for other dairy products.
With the arrival of additional milk to the Russian market, the supply will increase, and its difference to demand will be lower, explained the representatives of Danone.
In 2014, Russia banned the import of dairy products from the EU in response to EU sanctions for the reunification with Crimea. Because of this, the demand for milk increased, as Russian cheese producers tried to replace their French and Italian counterparts. By moving livestock around, Danone will be able to achieve significant savings and introduce new supply of milk products to the Russian market.
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