In recent months, Russia's Central Federal District has become the epicenter of a sharp rise in pork prices

Reasons for the price increase

The main reason for the rise in pork prices in the Central Federal District was a decrease in production volumes. According to the National Union of MEAT Processors (NSM), production indicators in the region fell, which in turn led to a shortage on the market. it is important to note that the Central Federal District is responsible for 54% of all pork production in RUSSIA, and any fluctuations in this region have a significant impact on all-Russian prices .

According to information from the analytical company NTech, the reduction in production volumes is due to several factors. Firstly, this is the impact of last year's economic conditions, when the cost of pork production increased by 25%. Secondly, many farmers face problems in livestock management, which also affects the overall production volume.
 

Price dynamics

Over the past month, the cost of pork has increased by 7.1%, which led to a kilogram going up to 158.5 rubles by the end of June. The biggest increase in price was seen in pork cuts used to make sausages and hot dogs. For example, trimmings, which contain equal parts lean and fatty meat, have gone up in price by a third, while another type of meat with a proportion of 80 to 20 has gone up by 9%.

Top managers of large pork producers, such as Ilya Makushkin, Deputy General DIRECTOR of Remit, emphasize that the current price increase is not an accident, but a natural process caused by previous economic circumstances. They also note that if the current dynamics continue, meat processing plants will have to raise prices for end products.

Consequences for consumers and producers

For consumers, rising pork prices may mean higher food costs , which is becoming especially noticeable in the context of rising inflation. Rising prices for meat products may lead to a change in consumer habits, with people looking for more affordable alternatives.

The situation is also worrying for pork producers. They will have to adapt to new market conditions, possibly revising their cost management and production optimization strategies. In the current instability, many companies may face the need to reduce production volumes or even exit the market.

Thus, the problem with pork production in the Central Federal District of Russia has deep roots and complex consequences. The sharp rise in pork prices, caused by a decrease in production, affects both producers and consumers, creating tension in the market. It is important to monitor further developments in the situation and take measures to stabilize prices and ensure food security in the region.