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Customs Union may smash Kazakh milk producers

15 april 2011, 16:25
Photo courtesy of mr7.ru
Photo courtesy of mr7.ru
Customs union may cause bankruptcy to Kazakh milk producers, Kazakh Zerno reports, citing the Quality Manager of Kosmis milk and juices producing plant Yelena Rechkina.

Collaboration is possible only at competitive prices, whereas Russian producers have much lower prices, she said. That is why they easily get into the Kazakh market knocking down prices of local goods.

“They knowingly set low prices, go for temporary losses, win the market and raise the prices again,” said Rechkina.

Kazakh producers cannot act likewise, she said, because if they do it will lead them to bankruptcy.
The Quality Manager believes that only government subsidies can help in this situation.

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