World meat industry news

Russia's withdrawal from the grain deal almost immediately affected the cost of grain. The increase in quotes was clearly visible on a variety of exchanges. For example, the cost of culture in Chicago has increased to 278 dollars per ton, and in Paris - up to 264 euros. The increase in prices also affected Russia, which did not really surprise domestic analysts too much.

Experts said that for many years the prices in the domestic market of Russia have been constantly reaching for the world ones. State Duma deputies explain this by saying that the country is a significant part of the global economy, so this phenomenon is simply inevitable. However, some analysts are skeptical about such statements. Especially this year, when a record amount of wheat was harvested during the past agricultural season. Because of this, prices in the domestic market should have decreased, but this did not happen.

In general, the dynamics of price changes for Russia looks very depressing. As soon as Moscow announced its withdrawal from the grain deal, the price of wheat rose to $250 per ton. Experts believe that in the near future prices may rise to $250-260 per ton. On the one hand, this state of affairs will have a very positive effect on grain producers, since the increase in prices will help them to get more profit from crop exports. However, it is still unknown what will happen to the prices of bread in the retail trade. Of course, if the cost of bread changes, it will be extremely small, since this product is on the list of socially significant ones. But other bakery products are likely to noticeably rise in price.

Domestic analysts said that retail chains will begin to raise prices for bakery products by about 10-15%. Russian livestock breeders have already talked about the increase in prices for fodder grain, which will increase the cost of their products in the near future. Alexander Korbut, an independent agricultural expert, is convinced that the increase in grain prices was due to several factors: weather conditions, the expectation of a record harvest in the US and Europe, and Russia's withdrawal from the grain deal. “The cost of grain may decrease, but the fall in prices will not be significant. For production, this is beneficial, as manufacturers can export their products for more money. However, it should be noted that the discount with France has increased,” he added.

Experts also noted the fact that there are several mechanisms in Russia that do not allow prices on the domestic market to rise rapidly. The most important of these is the export duty. Its rate is growing along with the rise in the price of grain all over the world. The higher the value of the culture, the higher the duty. If the export price of grain exceeds the critical level, then 70% of the increase is taken over by the budget. This is how prices are regulated in the domestic market of the country.

Analysts expect a rise in prices for pork and chicken this summer. Last year, feed grain was very cheap, so the cost of pork almost reached the cost of chicken. This allowed Russian manufacturers to increase the export of their products. However, now the risk of a rise in the price of meat is extremely high, since grain prices affect this indicator to a greater extent. Experts urge not to panic, as the situation in Russia is normalizing. The real problems arose in the countries that buy grain.