Influence of dairy industry leaders on the development of the Russian milk processing market

Abstract

Subject. This article analyzes the position and role of leading dairy companies in shaping the modern Russian milk processing market. Objectives. The article aims to analyze the opportunities and threats associated with the influence of leading dairy companies on individual milk processing markets, especially, in the context of the advantages of location in the Voronezh and Leningrad Oblasts. Methods. To describe the process of forming a business group in a three-part sequence Growth–Development–Structure, I used the market positioning, resource, and transaction concepts. Results. The article reveals imbalances in volumes of raw milk processing and production caused by the policy of regional expansion, in markets dominated by dairy enterprises controlled by leading companies. Conclusions. Leading dairy companies frame rules required for all milk processing market participants, but some practices of competing are ambiguous. Their actions put antitrust policy in the regulation of certain segments of the dairy industry in perspective.