Declining prices for chicken carcasses in Russia: reasons and prospects

Previously, the industry association of players, which provide 60% of the country's poultry production, attributed the rise in prices to insufficient supply amid a sharp increase in demand, problems with production in some regions of the country and unprecedented growth in exports. However, according to Rosstat, in August the price of chicken MEAT was 208 rubles per kilogram, and in September it increased to 221 rubles.

The beginning of last week brought important news from the Federal Antimonopoly Service (FAS), which announced a reduction in selling prices for chicken by producers. However, specific indicators were not announced. At the same time, Rosstat recorded a slowdown in the growth of prices for chicken carcasses to 0.9% during the period from October 10 to 16, which is an improvement compared to the previous week, where the growth was 1.26%.

Since the beginning of this year, chicken prices have increased by 27.52%. However, a representative of the Russian Ministry of Agriculture announced a meeting with members of the NSP, at which agreements were reached on intensifying production and stabilizing prices on the domestic market. This allows us to hope that the decline in prices for chicken carcasses is not a temporary phenomenon, but will become a sustainable trend.

One of the reasons for the decline in prices for chicken carcasses may be an increase in supply on the market. The intensification of production, which was announced at the meeting, may help increase the volume of chicken production and, as a result, reduce prices. Also, price stabilization may be due to increased competition between manufacturers, which forces them to strive to offer more attractive prices in order to attract more consumers.

In addition, the decrease in prices for chicken carcasses may be due to an increase in chicken imports. Perhaps producers took notice of the growing demand for chicken carcasses and decided to increase imports to meet market needs. This can lead to more competitive prices and lower costs for consumers.

In general, the decline in prices for chicken carcasses in RUSSIA is a positive signal for consumers. We hope that the joint efforts of producers and the state will help stabilize prices for chicken carcasses and ensure the availability of this product on the domestic market.