"Soyuzmoloko", composed of Danone and PepsiCo, has sent an official appeal to the Ministry of economic development and the head of the presidential administration Sergei Ivanov with comments about the impossibility of execution of the order of the Ministry of agriculture No. 648 and request to cancel it.

Under this order, milk suppliers are required to provide proof of the veterinary certification, since March of this year. However, Danone and PepsiCo, claiming that the order was registered by Ministry of justice on 17 February 2016, contrary to the law "On veterinary medicine", which refers to the need of providing electronic veterinary certificates from January 2018.

Director of communications, PepsiCo Marina zibareva States that "none of the market participants cannot comply with the requirements of this document", and therefore production and supply of milk may be suspended in the near future. In addition, the additional costs associated with veterinary certification, will lead to serious increase in the cost of dairy products, and as a consequence – increase in prices by 6-10%.

Federal distributors (Auchan, Dixy, Lenta, etc.) report that currently accept deliveries of dairy products in the same volume, and alerts for failures of deliveries were not received. According to the statements of one of the participants of the market, suppliers are now working "at your own risk", allowing the possibility to fall under the major penalty.

The current position was recently agreed at a meeting of President Vladimir Putin and Minister of agriculture Alexander Tkachev. The President ordered to check the maximum reduction of "additional burden on producers, which ultimately will inevitably affect the price".

Published: 06.10.2016.

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