World meat industry news

According to the FOM poll, in October, Russians experienced an increase in prices for a number of products; a rise in the price of meat and poultry was noted by 36% of respondents, milk - by 31%.

This is a seasonal increase in prices on the part of milk processors, who cannot constantly raise prices and usually do it in the fall, Mikhail Mishchenko, an expert and editor-in-chief of The Dairy News, told Moskovskaya Gazeta.

“Usually, processors raise prices at the beginning of the autumn season, citing an increase in production costs. It consists, first of all, of the price of raw milk, which grows by autumn. This year, the price of milk is stable, the last week we have even seen some of its fall. But usually processors at some point raise prices, taking into account the accumulated increase in costs, ”the source said.

The costs of milk processors are also formed from other components, the expert noted.

“At the moment - from the cost of packaging, the shortage of paints and varnishes. Some packaging manufacturers have left the market. This affects the cost of finished dairy products. There are quite a lot of elements that make up the cost of production and have increased in price, ”said Mikhail Mishchenko.

The main reason why the price of raw milk is being held back is the curbing of the ruble, the expert said.

“On the other hand, the shortage of milk on the Russian market is compensated by Belarusian products. However, restrained prices still had to be raised, and right now. Agriculture and, especially, dairy are not very elastic markets, the impact of Western sanctions on them is delayed in time. And it will have an effect,” says Mikhail Mishchenko.

What about meat prices?

“As for October, this is really an accumulated increase in prices,” businessman Dmitry Potapenko confirmed to Moskovskaya Gazeta. “Everything moves to the side when production is reduced, including production: equipment, feed for livestock, seed material are foreign and are not import-substitutable. The supply of meat on the market as such is not decreasing yet, but in the future it may decrease, and this will affect the price.”

According to the entrepreneur, it is not worth expecting the next price increase immediately after the October price increase.

“We will probably see an increase only in February-March,” predicts Dmitry Potapenko.