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Animal feed producers warned of possible 9% market contraction

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Animal feed producers warned of possible 9% market contraction

The pet food market in Russia may shrink by 9%. According to pet food producers, this is due to the rules on packaging design, which may lead to higher prices and reduced production.

According to the market participants, the negative scenario may occur due to the order of the Ministry of Industry and Trade, which from June 21, requires the use of the circulation mark RTR, writes "Kommersant".

Now they are marking their products with the PCT mark, but the EEU regulations are being developed for them. This will require them to replace everything with the EAU mark by 2023.

If another regulation is introduced, they will have to completely change the packaging twice in four years.

This will have a negative impact on costs, reduce sales and cause prices to rise. According to the estimates of industry participants, writing off printed packaging would result in the loss of more than 550 million rubles, while producing new packaging twice will cost 530 million rubles.

Moreover, the situation can result in the suspension of sales, in which case the companies can lose more than 21 billion roubles, which is 9% of the pet food market.

Therefore, the Association of Pet Food Manufacturers addressed Abramchenko with a request to postpone the entry into force of the order for three months and to allow the introduction of new products with the PCT mark until the EEU technical regulations come into force.

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Author: Maria Buzanakova

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