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Russian Food Manufacturers Fear Mandatory GOST Standards Will Increase Prices

Russian food manufacturers are expressing concerns that a new bill mandating compliance with GOST standards (state standards) could significantly increase prices, particularly for essential goods. This fear is fueled by the bill’s potential impact on production costs and the adaptation required by businesses to meet the new regulations.

The legislation, currently undergoing its second reading in the State Duma (Russian parliament), would require all food producers to adhere to GOST standards. Currently, food producers are permitted to utilize internal standards and technical specifications, provided they meet established safety regulations.

Industry associations have voiced apprehension about the potential consequences of this change. Several associations have jointly sent a letter to the Chamber of Commerce and Industry, warning of possible product shortages due to the expected non-compliance among businesses. They argue that many producers, especially small and medium-sized enterprises, may struggle to meet the new requirements, leading to a reduction in the availability of certain products.

Experts interviewed by MSK1.RU expressed surprise at the negative reaction from manufacturers. They view the mandatory GOST standards as a potential improvement to product quality and consumer protection. While acknowledging that initial price increases are likely, they believe that the market will eventually adjust to the new system.

One expert cited the “Honest Sign” system as an example of how stricter regulations can enhance product quality. Another expert suggested that consumers can influence the market by choosing products based on GOST compliance, effectively “voting with their rubles.”

The food industry anticipates substantial price increases across various product categories. Milk and dairy products are projected to increase by 10-15%, meat products by 8-12%, bread by 5-10%, butter by 7-10%, and baby food by 10-15%.

These increases are attributed to the additional costs associated with recipe modifications, laboratory testing, and packaging changes that will be necessary to comply with the GOST standards. Small and medium-sized businesses are expected to be disproportionately affected by these added burdens.

The dairy industry is particularly concerned, estimating that up to 10% of brands may disappear from the market, especially those produced by smaller businesses and those containing milk fat substitutes.

The article concludes that a transition period and government support for businesses would be beneficial in minimizing disruptions to the food sector. This assistance could help companies adapt to the new standards without causing significant price hikes or product shortages.