Spatial Behavior of Prices in the Russian Dairy Product Market: Influence of the Market of the Republic of Belarus

Abstract

The paper presents the results of a study of the impact of the Belarusian market on the spatial differentiation of milk and cheese prices in Russian regions. The study found that the counter-sanctions introduced by Russia in 2014 led to the fact that since 2015, the Republic of Belarus has accounted for more than 75% of Russian cheese imports and more than 80% of milk. However, despite the significant supply of Belarusian milk and cheese, it was determined that the spatial price differentiation between the Russian regional milk and cheese markets is lower than the spatial differentiation of prices for these goods between the Russian and Belarusian regional markets. At the same time, it was established that prices for cheese and milk in the central regions of Russia, which are the main importers of Belarusian cheese and milk, are less differentiated from the prices of Belarusian regional markets for these products in comparison with other Russian regions.