World meat industry news

The increase in prices for poultry meat in Russia is seasonal, their decline is expected in September, TASS reports with reference to the press service of the Ministry of Agriculture. The reasons for the current increase in prices are the increased demand for products traditional for the summer period, as well as an increase in production costs, the ministry noted. The main producers of poultry products confirm the expected decline in market prices in September.

The Ministry also notes the positive dynamics of poultry production. In January-July this year, the production of poultry for slaughter in agricultural organizations increased by 1.3% compared to the same period last year and amounted to 3.8 million tons in live weight.

Dmitry Leonov, deputy chairman of the board of the Rusprodsoyuz association, said that the average retail prices for chicken meat are 205.7 rubles / kg, which is 1.3% higher than a week earlier and 4.5% more than a month ago. In his opinion, this is affected by the cost of grain for the production of feed, the share of which is up to 60% of the cost of its production. Exchange rate dynamics also matter: the cost of vitamin supplements and premixes is tied to the dollar. “There are other production costs: the cost of electricity, gas, water supply, biowaste disposal, logistics, and so on. Further price dynamics will depend on the above factors, as well as on the balance of supply and demand in the market,” he said.

According to Rosstat, in July, the production of chilled poultry meat amounted to 271.6 thousand tons. This is 2.1% less than in July 2022 and 1.5% lower than in June 2023. For seven months, production increased by 1.8% to 2 million tons. The Statistical Office also reported that in the week from 15 to 21 August, among livestock products, prices for pork and chicken meat grew the most. Over the specified period, this product has risen in price by 1.4%. Prices for chicken meat increased in 79 regions in the range from 0.1% to 4.2%. A decrease in prices for this category of goods was noted only in three regions. Since the beginning of the year, prices for chicken meat have increased by 16.14%.

The head of the InfoLine agency, Ivan Fedyakov, said that prices for poultry meat are now really rising. According to him, manufacturers are sensitive to the ruble exchange rate, and now they can use its weakening as an excuse to raise prices. “Of the meat group, poultry is the most accessible. At the same time, the margins of producers are very low; in previous months they worked almost to zero, being afraid to raise prices. Now they have the opportunity to increase the cost of goods and compensate for the losses that were in the spring,” he said.

According to Fedyakov, the cost of poultry meat will continue to increase following the weakening of the ruble. Manufacturers have other problems besides the foreign exchange rate, he noted. For example, high interest rates on loans, which are also included in the cost of production. Another unpleasant factor is the lack of personnel at poultry enterprises. For example, the "Sinyavinskaya" poultry farm faced such a difficulty, which lacks 25% of employees. According to Fedyakov, "there is an acute shortage of personnel in the regions."

The expert believes that there are no factors on the agenda right now that could hold back price increases, with the exception of falling household incomes and low purchasing power. This does not allow to fully translate the increase in cost into the price of the final product. The consumer in this case can simply refuse to buy more expensive products. In his opinion, poultry meat prices are unlikely to fall in September, because if you look at the statistics of previous years, the situation was exactly the opposite - in the summer, prices began to decline, and grew again towards the middle and end of autumn.

In mid-August, the Federal Antimonopoly Service (FAS) began checking the validity of the increase in wholesale selling prices for poultry meat, the press service of the regulator reported. Inquiries were sent to the three largest producers of poultry meat, animal feed and representatives of industry associations. The service noted that any measures would be taken after the end of the checks.

Meanwhile, Izvestia reported that shawarma producers announced a planned price indexation from September at the level of 10-15%. The main reason is the rise in the price of poultry meat, which can lead to an increase in the final price of this fast food dish from 210 rubles. up to 300 rubles, while now you can buy shawarma for 190-250 rubles. The increase in prices is already underway, the final decision will be made in the near future after receiving new supplies of meat, Mosshawarma told the publication.