World meat industry news

The Federal Antimonopoly Service (FAS) of Russia recommends that retail chains independently monitor prices for socially significant goods in regions where they occupy a dominant position, said in a statement of the agency on Wednesday.

At a special working meeting organized on the initiative of the Ministry of Industry and Trade and the FAS, retailers were explained what their actions may contain signs of violation of the law, the material notes.

‘Timofey Nizhegorodtsev [deputy head of the department] during the meeting gave recommendations to representatives of retail chains: in case of achieving a dominant position in any municipal district or city district, analyze the price difference for socially significant goods and take measures to reduce them if they are overstated," the department said in a statement.

According to Nizhegorodtsev, whose words are quoted in the message, the FAS of Russia conducts constant monitoring and analysis of the cost of food in municipal districts and urban districts where retail chains occupy a dominant position and where they do not have it. ‘If we see overstated prices for the same goods where the retail chain dominates compared to where it competes with other market participants, antimonopoly legislation interprets this as an abuse of a dominant position. The warnings of the antimonopoly authorities are aimed at stopping the unjustified overstatement of retail prices,’ emphasized Nizhegorodtsev.

In turn, Deputy Head of the Ministry of Industry and Trade of Russia Viktor Yevtukhov noted that the Ministry of Industry and Trade recommends that retail chains switch from procurement practices at tenders to direct contracts for some goods of the social group, which will reduce the final price on the shelf.

Earlier, the FAS sent a warning to Pyaterochka to reduce food prices in Kalmykia. The FAS also issued warnings to Magnit and Pyaterochka to reduce food prices in Moscow region. In addition, the Federal Antimonopoly Service suspects Magnit and Pyaterochka of setting monopolistically high prices for vegetables in Ryazan region.