World meat industry news

Anna Kudryakova, expert of the meat market of the Institute for Agricultural Market Studies, especially for Rossiyskaya Gazeta:

- Now we have entered a very difficult period, an unstable situation has developed on the market. Prices of chickens in the wholesale grow, and it is difficult to explain this only by increasing of feed costs. Costs are rising for all meat producers, but prices of pork, for example, are falling.

Chicken meat becomes more expensive due to a temporary deficit. Hot summer led to a general decrease in the number of chickens in farms and a decrease in poultry weight. In addition, the largest enterprises coincidentally slightly reduced production. As a result, there is no surplus poultry on the market, while there is a demand for chicken meat, since other types of meat are more expensive. In this situation, prices are kept at a high level.

Now during various actions in retail the price is still at the level of 110-115 rubles per kilogram. This is exactly the middle point above which price increases will already have an effect on the volume of sales in many regions of the country. Of course, the level of purchasing power of the population varies in different regions. Somewhere people can afford to pay 115 rubles per kilogram of chicken, and somewhere - only 105-108 rubles. But such a low price is nowhere to be found, and is not yet in sight.

So far there are no prerequisites for reducing wholesale prices. But the longer this situation lasts, the closer the moment when high prices will have to come in retail. But if sales begin to decline in retail, it will immediately have a noticeable effect on the accumulation of products from manufacturers. Then an excess of chicken will come to the market and will keep prices down.