St. Petersburg Federal Research Center
of the Russian Academy of Sciences

"Our study is aimed at solving the most important socio-economic problem – the preservation and strengthening the health of socially vulnerable segments of the St. Petersburg population. The relevance of the study is determined by the general trend of reducing the disposable income of city residents, the increase in prices for milk and dairy products, and the reduction in milk consumption per capita. These processes are most acutely reflected in citizens with low incomes," - said Natalia Nikonova, a researcher at the Institute of Agricultural Economics and Rural Development (IAERD- structural division of  SPC RAS) St. Petersburg Federal Research 

Performed scientific analysis showed that over past seven years (from 2014 to 2020), the amount of dairy products consumption among the needy has decreased. In 2020 one member of a low-income family had at average about 244 kg of milk per year, despite the fact that the medical norm is 325 kg per year (i.e., under-consumption was 81 kg of milk per year).

In 2020, the population of St. Petersburg comprised 5.4 million people, at that, about 390 thousand residents were needy residents. In addition, over 850 thousand citizens have not reached the working age (up to 16 years). According to the calculations of scientists based on the data of Petrostat, the average cost of a kilogram of milk with a long shelf life is about 100 rubles. Accordingly, to provide the missing income to the needy, an additional 675 rubles per month per person are required.

"Our calculations have shown that to make the level of milk consumption in St. Petersburg equal to the level of medical standards for the needy families, about 10.6 billion rubles will be required per year. This corresponds to 1.7% of the total city revenue in 2020,"– said Nikonova. The results of the study were submitted to the Committee on Economic Policy and Strategic Planning of St. Petersburg.

Based on the analysis of statistical information, scientists initiated development of socially and economically sound proposals to submit to the authorities of St. Petersburg with an intention to improve the situation in the field of providing low-income residents with dairy products. Particularly, the solution to the problem of existing under-consumption of food can be a targeted system for providing the city needy families getting them integrated into the already functioning support mechanisms.

For instance, the "Unified Card of a Petersburgian” can possibly be used, with the accrual of "Thank You+" bonuses on it, to use later for milk and dairy products purchase. The principle of accrual of "Thank You+" bonuses is that every month on the " Unified Card of a Petersburgian " needy residents will receive the amount of bonuses equal to 675 rubles per month per person; these monetary funds may be used by any individual for  milk and dairy products purchase in the of the Program partner stores.

"If milk and dairy products were not purchased within a month, the bonuses at the end of the term "burn out" and then are credited again from the beginning of a new term. "Thank You+" bonuses are similar to "Thank You" bonuses from SberBank, with the only difference that "Thank You" bonuses can be spent on any purchases in partner stores of the Program, and  "Thank You+" bonuses - only on milk and dairy products of local production" - Nikonova explained.

Another effective mechanism for raising the milk consumption level for citizens, based on the experience of other regions, can be the "School Milk" program. Its beginning in Russia goes back to 2005 and is being currently implemented in 18 regions. In St. Petersburg the mentioned project was launched in a pilot mode in 2017 for one of the city's lyceums: students of 1-4 grades were given 200 ml of milk daily for free. A survey of parents conducted after the project was completed showed that 90% of respondents supported such an initiative.

Dairy products are the most important type of food protein origin. Same time, they are more affordable than meat or poultry. In general, measures of targeted food assistance to the residents of the city will contribute to the growth of demand for dairy products at the St. Petersburg market and reduce the level of poverty that eventually is an actual goal of the current state policy.