Agrofarm 2020
Exhibition of Breeding and Technology for the Manufacturing and Processing of Livestock Products
4-6 FEBRUARY 2020
Russia, Moscow, VDNH,
Pavilion 75
+7 (495) 974 77 77 ext. 3809

Souzmoloko is against double traceability system

As from July 2018, Russian manufacturers had to issue electronic veterinary certificates (EVC) for livestock products in the Mercury system.. At the same time, there is an experiment underway in the area of marking of some finished dairy products: it will last through February 29, 2020, and the kick-off start of mandatory marking is scheduled for June 1, 2020.

At the end of October, Artyom Belov, Director General of Souzmoloko, spoke in the Civic Chamber on the redundancy of two traceability systems. He noted that there were plans to introduce two mandatory traceability systems for dairy products, which will be an unprofitable and inefficient measure intended to reduce the share of illegal trade on the dairy market. Both systems - marking and electronic veterinary certification on the basis of the “Mercury” system - entail that trade participants will have to register information about movement of goods through the commodity distribution chain, thus duplicating each other functionally.

Belov highlighted that market players have already made the necessary investments to meet the requirements of VetIS, a federal government information system. As estimated by Souzmoloko, introduction of an additional traceability system will require new investments from dairy producers in the following amount: capital costs - RUB 25 bln (marking equipment), annual costs - RUB 20 bln (the cost of marking codes for all dairy products). Total costs in the first year – RUB 45 bln. Therewith, in 2018, net profit of producers amounted to RUB 35 bln. According to the leader of Souzmoloko, the economic effect of introduction of the marking system will be narrow and incomparable with the costs of its implementation.