The price of pork has risen in Russia. Over the year, the cost of its production increased by 25-30%

According to the Federal State Statistics Service, pork became the most expensive retail product last week - its prices increased by 0.9%. Beef increased in price by 0.3%, lamb - by 0.2%. Prices for poultry meat rose slightly - by 0.1%. Director General of the National Union of Pig Breeders (NSS) Yuri Kovalev said that over the past 15 years until the end of 2020, wholesale pork prices have been declining, while retail prices have been approximately at the same level. “Therefore, the current slight increase in the price of this type of meat is a delayed effect of the fact that prices have not changed much for a long time. It is also worth noting that inflation was still there during this period,” he said.

According to him, pork prices, primarily in retail, do not show a significant increase. The reason for this, Kovalev said is that work with retail is carried out under long-term contracts, therefore, an increase in cost, a decrease in production or an increase in demand are not reflected in retail prices instantly. “There are factors that could have a long-term impact. First of all, this is an increase in the cost of pork production over the past year by at least 25-30%. This has already been confirmed by all companies,” the head of the union said. — The government's actions to regulate the grain market helped stabilize prices. Now its price is at the level of 14-16 thousand rubles/t, and not 18-20 thousand rubles/t, as it was at the end of last year.” Also increased the cost of all amino acids, vitamins, mineral supplements, packaging, transportation.

The increase in production costs this year was offset by the producers' margin, those companies that did not have it began to work at a loss, he continues. Also, according to him, the ratio of supply and demand is of key importance. This year, as in 2020, there is an increase in demand, primarily due to a decrease in mass outbound tourism. In addition, July-August is the peak of the barbecue season, which helps to maintain high demand. “In the first half of 2021, pork consumption increased by 1%. It seems that this is not much, but you need to understand that last year the growth was a record 5%, - said Kovalev. “But from the point of view of the additional offer, there were problems.”

The head of the NSS called the main of them a complex of epizootic problems that escalated at the end of last year and still persist. In the center of Russia, there were very serious outbreaks of African swine fever at enterprises in the Tver, Kursk, Tambov, Pskov and Voronezh regions, Kovalev recalled. “As a result, 700,000 pigs were destroyed there. This has a long-term impact on livestock growth in 2021. In addition, there is a complex of problems with porcine reproductive and respiratory syndrome accumulated over the years, now it is fixed mainly in the Central Federal District. Many companies have decided to depopulate their herds in order to renew their livestock,” Kovalev said.

He also noted that at the moment, for the first time in the Central Federal District, pork production has fallen compared to the same period last year - this is a consequence of a complex of epizootic problems. In May, the decline in this macro-region amounted to 2%, in June it was already 4%, and in July the decline began to decrease. According to Kovalev, the restoration of production in the Central Federal District will begin in October. “But this does not mean that the new complexes do not produce pork. Everything is going according to plan here. A number of regions, primarily Bryansk, Voronezh, Oryol, Tula, Kemerovo, Novosibirsk, Primorsky Krai and the Republic of Mordovia, added almost 135 thousand tons of pork in six months compared to the same period last year, Kovalev estimated. - At the same time, a complex of epizootic problems has complicated the situation in the Lipetsk, Smolensk, Tambov, Tver and Samara regions.

The head of the NSS noted that all these factors affected the supply of pork, the growth of which in seven months of 2021 amounted to less than 1%. Also holding back momentum is hot weather, which has led pigs to eat poorly and gain less weight. “Nevertheless, wholesale prices are starting to decline, supply will recover, the pressure of wholesale prices on retail prices will decrease,” he concluded.