World meat industry news

Analysts of the National Credit Ratings (NKR) rating agency believe that after the restoration of supply chains, the settlement of trade margins for essential goods at the legislative level, the weakening of panic demand and retail discounts, following the results of the whole year, prices will adjust downward from current levels - by about 5 -7% relative to March. Analysts of the agency believe that prices from domestic producers will be reduced first of all.

At the same time, they do not rule out some further growth in prices for imported products in the event of new sharp fluctuations in exchange rates, as well as if the unfavorable situation in logistics persists or worsens. The main sectors of the domestic agro-industrial complex this year “will not fully feel” the impact of sanctions, and it is difficult to predict further developments. In the next five to ten years, the development of the selection base, livestock breeding, seed production, aquaculture and seedling nurseries will influence the reduction in the cost of production of the Russian agro-industrial complex, NKR analysts believe.

At the same time, the dairy industry, due to its dependence on imports of breeding animals and bull semen, is most exposed to risks due to new sanctions. But, according to the NKR, this can stimulate the development of domestic dairy selection, but the formation of a new breeding herd will require significant investment, time and government assistance. In addition, the agency notes Russia's dependence on imported seeds. So, the largest share is in sugar beet - 90%, in sunflower seeds - 70%.

Stabilization of the exchange rate and supply routes will be a powerful factor in reducing inflation, said Daria Snitko, head of the Center for Economic Forecasting at Gazprombank. “I think we will feel the effects of this closer to autumn, and inflation will begin to decline in both the food and non-food sectors,” she commented. According to Snitko, this year the sowing campaign will take place without any changes: the plan was formed back in the fall. True, for the main set of export crops, sowing will be increased as far as the reserves of materials and raw materials, primarily seeds, will allow, and there will probably be records. “As for the effect on the financial results of companies in the sector, they will depend more than usual on industry regulation. First of all, export quotas, pricing regulation,” says Snitko.