Social Functions of Dairy Trade

Abstract

Trade and market studies usually focus on economic prospects, with very little attention to the social functions of dairy trade. The present research objective was to develop a system of social functions of dairy trade and identify problems of their implementation. The authors used standard research methods, as well as economic and mathematical modeling, to analyze statistics on dairy trade in 2001–2024, i.e., prices, stocks, sales, consumption, production, etc. The analysis concentrated on the sanctions pressure after 2022. The resulting system of social functions was analyzed according to the corresponding dairy product. Russian dairy market proved to be coping with its social functions quite successfully, providing availability of dairy products. However, a sharp increase in consumer prices, which began in 2022, was not stopped by the overproduction of raw milk when producers lowered the prices. Moreover, the market is experiencing significant regional imbalances in consumer prices for milk and dairy products. Finally, trading networks of milk producers and processors provide no support during the period of overproduction and subsequent overstocking.