World meat industry news

Why sausages and wieners prices greatly increased? According to Rosstat, for 10 years, sausage prices have risen by 200%. And this process continues: only in the last 12 months, retail prices for these categories of sausages rose again by 8% - on average, to 367.97 rubles.  

Why are instant sausages made of cranked or shredded meat  rising in price so noticeably? On this account there are different opinions. For example, NeoAnalytics experts believe that the main reason for the rise in prices is an unsuccessful 2018 year. Compared to 2017, production volumes fell by 6.4%: up to 2.3 million tons. Another reason is the increase in VAT from 18 to 20%, but the increase in costs eliminates high competition, says Musheg Mamikonyan, Chairman of the Board of the Meat Union of Russia (MSR). By the end of the year, he believes, prices will drop compared to January and February. Indeed, the growth in prices for sausages and wieners is slowing down, according to Rosstat data: last year it averaged four rubles a month, and from the beginning of 2019 the monthly increase did not exceed 1.5-2 rubles. Imports no longer affect pricing, Mamikonyan noted, the quality of sausages and wieners has increased since 2014: this is evidenced, in particular, by a decrease in the use of soy in meat processing. In general, a saturated and high-marginal pork market seems to be the most interesting for a business, says the chairman of the MSR board.