What is the deal with Russian dairy farmers?
A group of Russian dairy companies has been fined by the Federal Service for the Agriculture and Fisheries for failing to report on the number of cows they produce in the United States and to make proper disclosures on the conditions of dairy production in Russia.
According to a report from Agence France-Presse (AFP), the Russian Federation Agricultural Council, the Union of Milk Producers of Russia, and other companies have been fined for not following a rule that mandates that companies provide data on the production of their cows in the US and Russia, including information on their milk productivity.
According the Russian government, the rule only applies to the Russian dairy industry, which has a significant presence in the U.S.
The Russian government has repeatedly claimed that Russian dairy exports have increased over the past several years, but experts say that the real number is much higher, especially when accounting for the fact that the dairy industry employs thousands of Russian workers.
In fact, in 2014, a report by the Russian Government Accountability Center found that more than 3 million Russians were employed in the dairy sector, and more than 6 million Russians work in the agricultural industry.
Russia’s dairy industry is heavily subsidized by the state.
In 2016, a total of $30 billion was allocated to Russian dairy production, according to the World Bank.
Russia’s dairy sector is estimated to generate $1.6 billion in revenue for the Russian economy annually, according a 2015 report by Russia’s National Dairy Council.
That figure is expected to grow to $2.5 billion in 2022.