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All news / Decrease in wholesale meat prices - seasonal factor

  • 28 Nov 2023, 11:13

The decrease in wholesale prices for pork and poultry meat, which was announced by the head of the National Meat Association Sergei Yushin, is associated with a seasonal factor. This phenomenon occurs annually and is associated with the approach of the New Year. Before the holiday, consumers begin to save money, prepare to buy gifts, and set aside money for holiday spending. As a result, the demand for meat decreases, but the supply of pork, on the contrary, increases.Decrease in wholesale meat prices - seasonal factor

National Meat Association forecasts indicate an increase in pork production of more than 5% this year, amounting to about 250,000 tons. However, in addition to the seasonal factor, the market is also influenced by the beginning of the Nativity Fast, when some Russians refuse certain types of products.

Yushin also noted that before the New Year there is usually a short-term spike in wholesale prices, as factories need to quickly produce gourmet products, including sausages. This leads to normal seasonal fluctuations in market value.

It is important to note that price changes at the wholesale level are not always immediately reflected in retail prices. Retailers often temporarily keep old prices so as not to scare away customers with sharp price increases. However, a decline in wholesale meat prices may lead to a gradual decline in retail prices in the future.

In general, seasonal fluctuations in prices for pork and poultry meat are a normal phenomenon that repeats itself from year to year. Consumers can take advantage of this temporary price reduction and purchase groceries at better prices before the holidays arrive.