Danone might leave Sverdlovsk Region

January 15, 2015. Danone, the transnational dairy foods giant, might close down its Russia-based plants in the long term in case the country’s economy keeps on deteriorating, TASS refers to Bernard Ducros, CEO and Vice President of Fresh Dairy Products Division in Russia and CIS countries, as saying.

‘We are not planning to close down the plants for the time being, but, naturally, it will all depend on the market situation, which could get very difficult,’ M. Ducros said.

According to his estimates, all of Danone’s Russia-based plants should still be operating for at least another one or two years.

Now a deputy of Sverdlovsk Region Legislative Assembly and Vice President of Kirovsky Supermarket Lev Kovpak, Danone currently controls over 50% of the local market. For one, the company owns Yekaterinburg Dairy Plant 1 and Shadrinksy Dairy Plant.

Danone was among the transnational corporations that received unfavorable comments from the Russian Agriculture Minister Nikolai Fedorov in early December. The minister claimed the dairy foods produced by these companies only contained 20% of actual milk, while the rest was additives. The Agriculture Ministry also blamed the MNCs for ruining the Russian dairy farming industry.


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