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Russian Milk Flowing Past Scarce Dairy Cartons

16.06.2022
in All News, Markets, News Europe
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RF milk producers are short of carton packaging. The problems began after the adoption of the fifth package of sanctions by the EU, taken effect on April 9. There have already been cases when packaging manufacturers were not confirmed the delivery of the agreed volumes of cardboard. The lack of raw materials forced major players to look for options to stabilize supplies

On June 9, the Russian Soyuzmoloko dairy association (Danone, PepsiCo, Ekoniva, Molvest, etc.) asked the regulators to assist in obtaining information on the monthly production of laminated cardboard and to introduce a centralized distribution of raw materials among food packaging manufacturers, such as Tetra Pak, Lambumiz, Sterex Pak, Molopak, Prompak etc.

Before the sanctions, up to 50% of this raw material was imported. Today, there is a shortage of about 30%.

The Swedish-Swiss company Tetra Pak has localized production facilities in the RF (over 500 production lines), which require imported packaging materials and components for normal operation. In early June, the Russian subsidiary applied to the Swedish National Board of Trade with a request to make an exception for them and allow deliveries, but was refused.

Some companies are phasing out boxed dairy products, such as yogurt, to use scarce packaging for more cost-effective products. Meanwhile, according to Artem Belov, head of the Soyuzmoloko association, the transition to alternative packaging is not easy, as it requires different production lines. Today companies need to simultaneously continue to search for cardboard packaging and adjust their production for different containers.

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Tags: Tetra PakСоюзмолоко

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