The Ministry of Agriculture admitted an increase in prices for eggs and poultry meat within inflation

MOSCOW, 17 Feb – RIA Novosti. The Ministry of Agriculture believes that there are no prerequisites for a noticeable rise in prices for poultry and eggs, but they admit that prices will rise within inflation.

So the department commented on the message of the Izvestia newspaper that producers of poultry and eggs are asking retail chains to increase selling prices, as the supply of their products on the market is reduced due to bird flu.

“The Ministry of Agriculture does not have information about the increase in selling prices from the main suppliers of poultry products,” the ministry's press service said. They also noted that they are working with industry associations and large manufacturers to prevent unreasonable increases in wholesale prices.

Nevertheless, in the short term, an increase in prices is possible, the Ministry of Agriculture added, explaining that this could be affected by an increase in the cost of feed and imported components, a worsening epizootic situation in some regions and an increase in consumer demand for poultry products. In addition, the growing competition for available volumes of products between retail and processing plays a role, which are sometimes ready to offer higher prices on tenders and under direct contracts. “At the same time, the Ministry of Agriculture expects that the balance of supply and demand will stabilize by the end of the first quarter, taking into account rather short production cycle in poultry farming, “the press service said.

The cost of livestock enterprises for the fodder base will be reduced by the use of customs and tariff regulation measures in relation to grain and oilseeds, which will reduce the cost of production. And increasing the availability and expanding the areas of targeted use of concessional loans will contribute to the growth of production, the ministry said.

According to Rosstat, eggs rose in price by 15.1 percent over the past year, while food inflation was 6.7 percent (and its general level was 4.9 percent). The Ministry of Agriculture noted that the average annual prices for poultry products have practically not changed for several years, and in 2020 they were even lower than in 2019. This is due to a significant increase in production volumes and a high level of saturation of the domestic market.

Meat and vegetables

The day before the newspaper “Kommersant” wrote that representatives of the meat industry are also seeking to increase purchase prices – according to them, the rise in prices for pork and chicken requires higher prices for finished products – sausages and sausages. The Ministry of Agriculture said to this that they had not received any complaints about the rise in prices from meat processors. And the high degree of provision of the domestic market with the main types of meat and the growing competition on it will help maintain a stable price level, the department added.

The RBK portal, in turn, drew attention to the rise in prices for potatoes and carrots. Since the beginning of the year, they have increased in price by more than a third, both against the backdrop of weather and a poor harvest, and against the background of a decrease in planting due to a 2019 surplus.

The Ministry of Agriculture considers this trend to be seasonal, and the increase in prices is associated with an increase in the share of imported products. “In particular, young potatoes from Egypt and the Mediterranean countries are currently entering the market, which is much more expensive than domestic ones. A correction in prices for potatoes is expected from June after the start of supply. new harvest, “- said the press service of the ministry.

In addition, the alignment of direct supplies of potatoes to trade networks and the elimination of unnecessary links in the trade chain will help reduce prices. To this end, the Ministry of Agriculture sent a list of regional producers to AKORT and the Ministry of Industry and Trade.

The department believes that there will be enough potatoes to meet the needs of Russians, and the rise in prices is largely due to the competition of retail for large-caliber products.

“Last year, the potato harvest in Russia amounted to 19.577 million tons (at the end of 2019 – 22.073 million tons), which, taking into account imports, will fully satisfy the domestic needs of the country,” the press service said.

AKORT commentary

AKORT (Association of Retail Companies), for its part, said that retailers are taking all measures to prevent a sharp change in food prices. “All requests from manufacturers and suppliers for changes in purchase prices are carefully considered by retail chains for validity. If the reasons for the increase in prices are objective, retail chains go to increase purchase prices, while simultaneously limiting changes on the shelves at the expense of their own resources and avoiding a sharp correction prices “, – said in the message.

As for the increase in the purchase prices for eggs and poultry meat, the AKORT noted, the manufacturers give various reasons, including the reduction in production volumes due to the seasonal factor and due to the massive spread of bird flu.

“Trade networks have notified the Ministry of Industry and Trade about the proposals received from egg and poultry producers,” the association added.

The Ministry of Industry and Trade, in turn, told RIA Novosti that it is in constant contact with retail chains and promptly sends all information about cases of price increases by suppliers to the Ministry of Agriculture.

Author: wedocount

Leave a Reply

Your email address will not be published. Required fields are marked *