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All news / The rate of increase in beef prices is within the inflation range

  • 28 Nov 2023, 11:15

Currently, there is a tendency for beef prices to increase on the Russian market, but the growth rate is within the inflation range, said Dmitry Leonov, deputy chairman of the board of the Rusprodsoyuz association, on November 27. He noted that several factors influence the change in value.The rate of increase in beef prices is within the inflation range

“In mid-November, average retail prices for beef on the bone were at the level of 513.6 rubles per 1 kg. The price increase over the month was 0.8%, over the year prices increased by 6.8%. Price dynamics in the industry today are influenced by a number of factors. Firstly, this is a reduction in the number of cattle. Thus, as of October 1, 2023, the number of cattle in farms of all categories amounted to 17,884,000 heads (-1.6% per year, 291 thousand heads),” the expert specified.

Secondly, according to him, rising production costs had an impact. As he explained, due to the exchange rate, food and veterinary products became more expensive, loan rates, housing and communal services tariffs, and logistics increased. In addition, in a situation where the key rate has reached 15%, banks are delaying decisions on lending to the agricultural sector, he added.

“Since most of these factors are common both to producers and sellers of different types of meat, and to producers and sellers of most other categories, we see no reason to reduce prices at the moment. At the same time, on the eve of the New Year holidays, and the current year is unlikely to be an exception; more products for the New Year’s table are sold with promotions and discounts,” said Dmitry Leonov.

The press service of the Ministry of Agriculture stated on November 27 that there is a stable price situation for beef on the Russian market. They clarified that the retail cost of this meat increased over the corresponding period within the limits of general inflation. The ministry said that by the New Year, the food market traditionally experiences an increase in retail prices, which is associated with an increase in demand for food. However, the department does not predict their significant increase above the long-term average fluctuations.