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Monday, October 24, 2016

The lifting of the embargo on raw materials for baby food will help domestic production

In Day of protection of children the government has weakened the regime of the food embargo for the raw material from which the baby food. A Russian company from this, ironically, will benefit. A special study has confirmed that more and more people choose baby food domestic production.

The government has weakened the regime of bradenburg for beef, poultry and vegetables that will be used for the production of baby food.

“The farming it takes two or three years to reach the desired volume, and to feed the younger generation is now”

According to the decree of 27 may 2016 (N472), mode of bradenburg seized meat of bovine animals, meat and offal, poultry, and vegetables intended for production of baby food.

The import of these products is permitted upon confirmation by the Ministry of agriculture its purpose. The Agency will also have to develop and approve the procedure for confirmation of the target destination of imported products and approve as appropriate the amount of its import to Russia.

Food embargoes acts of the Russian Federation, 7 August 2014 in relation to products from the US, EU, Australia, Norway and Canada. In 2015 it has been extended to August 5, 2016. August 13 2015 in the list of those countries included joined the anti-Russian sanctions Albania, Montenegro, Iceland, Liechtenstein, from 1 January 2016 – Ukraine. The ban applies to meat and meat products, fish and fish products, milk and dairy products, vegetables and fruits. Currently the government is preparing documents for the renewal of bradenburg until the end of 2017.

Raw materials for baby food production has more stringent technical regulations. According to him, for example, in the manufacture of products for children, you cannot use meat skinny and rejected animals and meat of bulls and boars.

Manufacturers of baby food are also not eligible to use the conditional unfit meat, including frozen blocks from different types of trimmed meat of animals and poultry, and offal (liver, tongue, heart) with expiration dates more than six months.

Raw materials for baby products can’t be stuffed with artificial food additives, flavor enhancers and similar chemicals that are actively used in the manufacture of “adult food”.

“The whole approach to raw material for baby food one: the raw material should be fresh, highly nutritious, does not contain pathogenic microorganisms and must be treated separately from other food,” – said the Director of business development QBF Margarita Gorsheneva.

According to her, the relief imposed because domestic beef production has not yet passed the desired number of cycles of reproduction from the moment when began the policy of import substitution and food embargo. “The farming it takes two or three years to reach the desired volume, and to feed the younger generation is now” – suggests the expert. With vegetables the situation is simpler, but since abolished the embargo on raw meat, it seems, decided on the vegetables to make an exception.

Initially, the Russian embargo did not touch ready baby food from Europe, then exceptions were made for specific raw materials. For example, from the effect of predamage brought lactose-free milk. Therefore, Russia’s decision to allow the import of meat and vegetables for baby food production may have been made in order to encourage local producers to produce more of its own finished products with higher added value.

According to market research company Success Brand Management, a leader in the supply of baby food from Europe is Switzerland, which accounts for about 40% of total imports. On the second and third areas – the Netherlands (25%) and Germany (10%). Imported mostly dry mixes and vegetable purees. Own products for baby food in Russia is two to three times less than imports. And the annual growth of this market is ensured through imports, not domestic products. For example, foreign importers, almost completely occupied the sector of the goods – substitutes of breast milk, due to lack of Russian raw materials for this product.

However, in the last two years embarked on import substitution, opens new baby food production, or existing plants increase production volume. For example, last summer in Gudermes opened a baby food plant, which will produce 48 million cans. In Vologda the company nestlé launched a new line for the production of 20 kinds of children’s cereals, it has invested 2.5 billion rubles In the Altai region, the company “modest” expands production by upgrading lines and increasing capacity. Danone bought for 800 mln milk plant in Yekaterinburg and converted it for the production of baby food.

Russian production allows to reduce costs, while imported products due to the devaluation of the ruble has seriously jumped in price. It is not surprising that Russian consumers have to reconsider their own tastes and to choose not the products of market leaders.

“Products of Russian manufacturers is a half to two times cheaper than the importers, so now a buyer more confidence to domestic producers, the relevant criteria of price and quality,” the study says.

On the other hand, such indulgences open a new loophole for the importation of unauthorized products from Europe. For example, permission to bring lactose-free milk is used by cheese producers. Now under the guise of raw materials for baby food can also skip the meat and frozen vegetables for making a normal “adult food” or just for sale.

However, to follow this will have the Ministry of agriculture. To recognize the violation of the sanctions regime will be on a sharp rise in the import of raw materials for children compared to previous years when the food embargo was not in effect.

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