Russia’s prosecutor general launches investigation into rising milk prices

Russian Prosecutor General Igor Krasnov has ordered an investigation into reports of manufacturers raising milk prices. According to the Prosecutor General’s Office, the inquiry will be carried out by the Federal Antimonopoly Service, the Agriculture Ministry, and the Industry and Trade Ministry.

The office said prosecutors should deliver an “assessment of the actions of economic entities,” considering the “particular social importance of dairy products.” If violations are found, steps will be taken to “curb unjustified price increases and protect citizens’ rights.”

Earlier, Vedomosti reported that Wimm-Bill-Dann Foods, one of Russia’s largest milk producers, which is owned by the American company PepsiCo, informed retailers of a roughly 3.4 percent increase in wholesale milk prices starting November 1. A month earlier, another producer, Ecomilk, had also warned of a price hike, raising prices by 10 percent. The companies cited “external factors” and the “progressive growth” of raw material and overhead costs as reasons for the increases.

Butter prices in Russia have also surged by more than 20 percent since the beginning of the year. The Federal Antimonopoly Service attributed the rise to higher production costs, “including the rising expense of raw milk and dairy fats.” In response, Deputy Prime Minister Dmitry Patrushev convened a meeting with dairy industry leaders. Following these discussions, Russia began importing butter from Turkey, the UAE, and other countries.