The Ministry of Agriculture reported that, by the beginning of February, selling prices for pork in Russia had decreased. They are now 9.1% less than at the end of December 2018. When to wait for lower prices in retail?
Pork in retail now costs between 200 and 350 rubles per kilogram ($3.05-5.34), depending on the cut, distribution network and region, said Albert Davleev, president of Agrifood Strategies consulting company. "The reduction in prices for final consumers will largely depend on the policy of retail chains," he said. "Suppliers enter into annual agreements with retailers, and prices change no more than once a quarter. Within the annual contract there is an indicative of which the price of a product can go up or down. Last year, the price of meat increased due to lower imports and higher feed prices. At the same time, retailers didn’t raise its cost much. It’s possible that they will want to compensate for lost margins earlier this year. "
Meanwhile, the Ministry of Agriculture expects that prices for pork in 2019 "will remain at a stable level," and their growth will not exceed inflation. The investment projects implemented with state support over the last two years should provide all of Russia's needs for pork until 2022, inclusive, including taking into account the possibility of export growth, the agrarian ministry noted.
Source: soyanews.info.
