World meat industry news

In early January, egg prices in Russia continued their upward trend, rising 4 percent, despite the abolition of import duties and other measures taken by the government. Last year, eggs became the most expensive product on the market, rising 61 percent, outpacing increases in prices for meat, chicken, vegetables, fish and sugar, according to a Rosstat report on consumer prices.

This problem has not gone unnoticed by Russian parliamentarians and President Vladimir Putin. In response to rising egg prices, the Ministry of Agriculture promised to stabilize their prices, and the Federal Antimonopoly Service began investigating several cases against producers who unreasonably raised prices. In addition, the government has zeroed out import duties on eggs to increase market supply. However, despite all the measures taken, egg prices continue to rise.

According to information received from a source in the State Duma, it is assumed that they will contact the Federal Antimonopoly Service (FAS) with a request to solve this problem. At the same time, some food products have become cheaper. According to Rosstat, the total cost of food in 2023 increased by almost 9 percent. Bread rose in price by 5 percent, meat and poultry by 16 percent, fish and seafood by 6 percent. Some products, such as pasta, sunflower oil, cereals and legumes, have become cheaper. The cost of milk remained stable, but alcohol increased in price by 2.5 percent. In just a year, prices for vegetables have increased by a quarter, and in December, cucumbers rose in price by 40 percent. However, oranges and red caviar have become more accessible.

As for chicken prices, they rose almost 28 percent for the year, but in December there was a decrease of 2 percent. The head of the State Duma Committee on Industry and Trade, Vladimir Gutenev, noted that prices for chicken meat have not only stabilized, but are also gradually returning to the October 2023 level.

Thus, eggs remain one of the most problematic product categories in Russia. Despite the measures taken by the government, prices continue to rise. The situation has attracted the attention of parliamentarians, the president and the Federal Antimonopoly Service, and they intend to find a solution to this problem.

Russia's price landscape in 2023: trends, drivers and forecasts

In 2023, Russian consumers faced a series of economic shocks that led to rising prices for a wide range of goods and services. According to Rosstat, the consumer price index in December 2023 increased by 12.9% compared to December 2022. This is the highest inflation rate since 2015.

Drivers of inflation

There are a number of factors that contributed to rising prices in Russia in 2023. One of the main factors was the rise in energy prices caused by geopolitical tensions and supply disruptions. Rising energy prices have led to higher production costs for businesses, which in turn has led to higher prices for consumer goods and services.

Another factor contributing to rising prices was the COVID-19 pandemic. The pandemic has caused supply chain disruptions and increased demand for certain goods such as food and medical supplies. This has also increased production costs for businesses, which in turn has led to higher prices.

Finally, the rise in prices was also due to increased demand from consumers. As the Russian economy recovered from the pandemic, consumers began to spend more money, leading to increased demand for goods and services. This also led to higher prices.

Consequences of inflation

Rising prices had a significant impact on the Russian economy and consumer welfare. Inflation has led to a decline in real incomes, leading to a decrease in purchasing power and a reduction in spending. It has also increased the cost of living, making it more difficult for many Russians to pay bills.

Rising prices also had a negative impact on Russian enterprises. Rising prices for raw materials and supplies have increased production costs, leading to lower profits and job losses. This has also made it more difficult for Russian enterprises to compete with foreign enterprises.

Forecasts for 2024

Inflation in Russia is expected to continue rising in 2024. Energy and raw material prices are likely to remain high, increasing production costs for businesses. This, in turn, will lead to higher prices for consumer goods and services.

Additionally, consumer demand growth is expected to continue into 2024. As the Russian economy recovers, consumers will spend more money, which will lead to increased demand for goods and services. This will also lead to higher prices.

Overall, inflation in Russia in 2024 is expected to exceed the Central Bank's target level of 4%. This will have a negative impact on the Russian economy and consumer welfare.