On the Russian meat market the planned new conflict between raw material suppliers and processors. Major manufacturers of sausages recorded since the beginning of July “no reasoned” the rising cost of pork and poultry meat 26-32%, threatening them with reduced profitability and investment programs. Meat suppliers claim believe false, explaining the surge in prices to seasonal demand.The growth of prices for raw materials for sausage and meat products, “Kommersant” said a source among the processors. The operating Director of group “Prodo” (the brand “Klinskoe”, “Omsk bacon”, “Black boar”, etc.) Genrikh Arutyunov confirmed that in July—August pork half carcasses price increased by 32% to 170 rubles. per 1 kg against may—June. Chicken broiler for the same period increased in price by 26% to RUB 108 per 1 kg, he added. In GK “Fumes” also stated that they see “a sharp, no reasoned increase in the cost of raw materials” in the last three weeks. Today, according to the group, the price increase reaches about 21.4% to the previous period.The CEO of the National swine Union Yuri Kovalev considers the claims processors “largely false”. According to him, today, due to seasonal demand, the price of pork is at its peak. But at the end of August, the demand will fall again, and with it will go down and the cost of meat, he predicts. The head of National meat Association Sergey Yushin also said that due to closed borders people spend their holidays at home, which stimulates the demand for pork. In the “feed” confirm that in July—August the sale of meat grew by 10% compared to the same period last year. The General Director of group “Rusagro” Maxim Basov said that the demand for pork has increased because of relatively low prices, which, moreover, have already begun to decline this week.Mr. Arutyunov admits that the consumption of pork could grow because of the holiday season, the reopening of cafés and restaurants, etc. But, he said, the proposals in this market, is the growth of demand did not justify a significant price increase. On the market of raw meat in the past year, the proposal only increases with static overall demand, agree in the General Ledger “Fumes”. According to the National Union of pig producers, pork production for the first half increased by 10.9%, to 2.57 million tons, year-on-year. Consumption over the same period increased by 5.2%, to 1.93 million tons, export — by 96%, to 87.8 thousand tons.As noted by Yuri Kovalev, in January—July the average price of pork remains 8.5% lower than a year earlier, and by the end of the year will be below 10%. In this case the production cost increases because of high prices for grain and feed, valuing amino acids, especially lysine and vitamins, adds Sergey Yushin. In addition, he notes, manufacturers of pig��us operate in a competitive environment: the largest player ABH “Miratorg” is about 10% of the market, and most companies in the top 20 accounted for 1-2%. In the “Miratorg” has refused comments. In the other major producer of pork, poultry and sausages Cherkizovo group questions not answered.In “Tape” saying that he had not received complaints from pork producers to raise prices but to raise the cost within 10% want poultry farmers. The main reasons are the depreciation of the ruble, which caused the cost of feed, vitamins and amino acids, as well as rising transportation costs. X5 Retail Group (“Pyaterochka”, “Perekrestok”, “Karusel”) and “Magnet” for questions not answered.Manufacturers of sausages to raise prices yet do not plan. In GK “Smokes” think it inappropriate, given the level of income of consumers. There indicate that as a result of rising prices of raw materials will reduce the profitability and development programmes. According to Rosstat, in the second quarter, the real incomes of Russians decreased by 8% yoy. In “Prodo” also plans to increase the cost of production. As noted Genrikh Arutyunov, the Federal Antimonopoly service (FAS) “closely watched” for changes in the prices on the shelves, but does not intervene in the fluctuations in the commodity markets. FAS will check if there is a specific facts substantial price increase from processors of meat, said the head of the control of agro-industrial complex of the FAS Larissa Vovkivka.Alexei Polukhin
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