French dairy company Danone, owner of Dutch company Numico, is going to export five thousand Dutch and German dairy cows to Russia, the Volkskrant reported on Tuesday.
The animals will be transported over a distance of 4,500 kilometres to a farm in Tyumen in Western Siberia.
The reason for the move by Danone, which does not normally trade in cattle, are the rising milk prices in Russia. The country closed its borders to Western European cheese in a reaction to the European boycott over Ukraine. That, in turn, means local milk is now used to make Russian cheese causing milk prices to spike.
This year alone milk prices have gone up by 14% in Russia. ‘ This is endangering the production of dairy products, such as yoghurt,’ head of Danone’s Russian unit told Bloomberg. By having the cattle graze in Russia the company is hoping to bring down the price of milk.
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