The MilkCoin potential: A look at the Russian milk and dairy product industry
Demand is growing for milk, meat and dairy products
For as long as man has learnt to domesticate animals, moving from hunter-gatherer lifestyles to agrarian concentrations, milk and related dairy products have formed a staple of daily diet. Milk, cheese and meat have never been in higher demand in Europe and in Russia, the supply has never been more scarce.
This has led to serious inflation in food prices — with food and dairy products experiencing 21.2% biannual inflation from 2013 to 2014. This trend has only continued with more severity, as 2016 saw a 23.6% increase in consumer prices in this industry since 2014.
Combined with the ongoing economic crisis in Russia, a deteriorating labour market and a marked decrease in disposable incomes of the Russian population, the forecast for the next biannual rate in 2018 doesn’t look any brighter for the food and dairy market.
Rising prices and smaller outputs mean that for the first time this century, Russians are consuming less milk and dairy products than other food groups, except fruit, with an overall 3.7 per capita decrease between 2013–2015.
Worse still, the shortage and impoverishment of Russians has led to mass counterfeiting of food products and significant discrepancies between product labeling and actual content. TheRosselkhoznadzor (the Federal Service for Veterinary and Phytosanitary Surveillance) reported that the most frequently counterfeited group of products are dairy products, in which palm oil is used on a mass scale instead of milk.
Why MilkCoin is a viable investment
Clearly, the situation for the food industry as a whole is getting worse, despite efforts from the current regime in Russia. The Center for the Study of Dairy Market of Russia’s leading dairy industry media The DairyNews says that the dairy shortage in 2015 was 8.2m tonnes.
After losing more than half of its supply due to embargo on food imports from 2014, the Russian government intensified its “Food Security Doctrine” launched in 2010 to prop up its domestic output and reduce dependence on agricultural imports. This resulted in the adoption of the Agricultural Development Programme 2013–2020, which scaled up a system of subsidies and direct payments aimed at so-called “Priority Branches” of the Russian agricultural and food sector.
More than EUR 30 billion has been allocated to these Priority Branches.
1. MilkCoin has been recognised by the Russian government as a part of these Priority Branches, and is therefore a “Priority Project”.
Should the MilkCoin project raise the desired funding, it will be a fully operational enterprise supported by the local government. It will enjoy subsidies and possibly further grants, while benefiting from a reduced tax base and expenses. This directly translates to a cost-efficient operation after only one year of full operation.
2. MilkCoin has an existing operation, acres of farmland and ready infrastructure
The business proposed by MilkCoin isn’t just a mere dream — it is grounded in a reality waiting to expand. Some $10 million has already been spent by its owners and they now own 3,500 hectares of prime land just outside the city centre of Voronezh, greatly reducing logistics and transport costs.
3. MilkCoin knows the business, and knows what it wants to do
The team behind MilkCoin isn’t just a group of idealists with a plan. They are experts with a solid track record in the fields of economics and wholesale/retail, construction and agricultural development.
They are primed to start operations, having completed all the necessary paperwork, including a clear business plan and financial model which is openly available for inspection. The project has also passed all government approval stages and is ready for the next stage after its ICO.
Learn more about MilkCoin
Having worked in the industry for years, we are very excited about the prospects of the MilkCoin ICO, which will launch on 15 November 2017. We invite you to follow us here on Medium for more daily insight into the project.
You can also read more, ask questions or join the discussions on the following channels:
1. Website: https://milkcoin.io/en/
2. Whitepaper: https://milkcoin.io/en/Whitepaper-EN.pdf
3. Facebook: https://www.facebook.com/MilkCoin
4. Twitter: https://twitter.com/milkcoinico?lang=en
5. Bitcointalk: https://bitcointalk.org/index.php?topic=2286652.0
6. Telegram: https://t.me/joinchat/D3ajrRCxVZ5vnVw-QvzSVg
7. Bounties: https://bitcointalk.org/index.php?topic=2286798
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