"In January, the growth in food prices amounted to 0.8%. This is 71.5% less than in January of 2011," Viktor Zubkov said in his opening remarks.

Participants in the meeting reviewed the situation regarding market prices for dairy and meat products.

"Thanks to measures taken by the government to reduce economic risks, the dairy industry is becoming attractive to investments, including for major foreign investors," the first deputy prime minister said.

Following the discussion, Viktor Zubkov instructed the Ministry of Agriculture, together with branch associations of dairy manufacturers and processors, by the end of February to complete signing the annual agreement on the recommended monthly average basic indicative prices for raw milk in 2012.

"The practice of signing these agreements in previous years allows for balancing the interests of dairy producers, processors and end consumers," the first deputy prime minister noted.

Viktor Zubkov also drew the attention of federal and regional executive bodies to the need to establish the most favourable conditions for the production, procurement, processing and sale of livestock products by small businesses, including on the basis of developing cooperative ties.

In this regard, Commission members discussed the prospects for the development of the market and fair forms of trades as well as their accessibility to agricultural manufacturers.

The meeting participants also heard reports on the price situation in the regions. Reporting on the measures to stabilise the food market were Prime Minister of the Republic of Bashkortostan Azamat Ilimbetov, Deputy Government Head of the Samara Region Viktor Altergot, Head of the Department of Trade and Services of Moscow Mikhail Orlov, and Chairman of the St Petersburg Committee for Economic Development, Industrial Policy and Trade Yevgeny Yelin.

Following the discussion, the commission recommended that regional heads take additional measures to increase agricultural output and to develop competition on the food market.