"Considering the situation with the dairy market, the Commission wholly supports the Russian Agriculture Ministry's draft resolution on additional measures to regulate the market of milk and other dairy products," said Viktor Zubkov said in his opening remarks.

The draft resolution stipulates intervention in the dairy market to restrict production "surpluses" during the dairy "high season."

Mr Zubkov enumerated several measures already adopted by the Government to develop the dairy market. Among these were targeted programmes to develop dairy farming by establishing family dairy farms, enacting a law on the technical regulation of milk and other dairy products and implementing mechanisms for customs and tariff regulation.

During the discussion, the necessity was noted to specify funding sources and amounts, the geography of the intervention, the distribution channels for purchased products, the availability of storage infrastructure, as well as the need to analyse the effect of the proposed measures on pricing in the market.

In addition, as Mr Zubkov noted, "Upgrading production and improving genetic research must remain priority tasks in the dairy industry."

"Specifically, these measures are an effective approach to removing the problems of seasonal peaks," emphasized Mr Zubkov.

The draft resolution has been tabled for consideration at the meeting of the Government Presidium on October 8, 2010.