World meat industry news

All news / Broiler meat has become cheaper

  • 15 Mar 2019, 10:18

Such dynamics may persist until the May holidays. One of the peaks of sales of poultry meat accounts for the beginning of the barbeque season.

In the second decade of March wholesale prices for broiler meat decreased by 4.8% compared to February. However, in retail market they decrease more slowly. According to Rosstat,  retail chicken prices fell only by 0.7% compared to the end of February and by 0.8% to the end of 2018, to 149.16 rubles / kg against 151.36 rubles / kg in the last week of December. A year ago retail broiler price was fixed at the level of 122.84 rub./kg - about the same level the price remained at the beginning of June, and then began to grow.

Albert Davleev, president of consulting company Agrifood Strategies, predicts that until the third decade of April poultry meat prices will continue to decline by up to 5%. “We do not expect a sharp fall in prices due to the limited ability of poultry farmers to increase already reduced production volumes, a shortage of hatching eggs, as well as high prices for feed grain,” he commented to Agroinvestor.  The end of Lent at the end of April  and the beginning of the  barbeque season for the May holidays traditionally cause one of the highest annual peaks in sales of poultry meat, according to Davleev.

As for wholesale prices, the decline is normal for the current period:  there is a seasonal decline in demand after the New Year holidays. With the onset of Lent, wholesale prices are “bottom” and unfold up to the beginning of the barbecue season, agrees the head of the direction of strategic marketing of the Cherkizovo group Andrei Dalnov. “Retail prices are usually more stable, but in the beginning of summer the decline should be more substantial (its depth will depend on retail policy), which will stimulate the growth of demand for broiler meat,” he believes.