Russia: Beef processing prices rise to three-year high

Published 2024년 11월 20일

Tridge summary

Since the start of the year, Russian beef prices have surged by 22% to a high of 700 rubles/kg, with further increases to 720 rubles/kg expected in the week of November 18-24. While wholesale prices have significantly risen for both retailers and manufacturers, consumer prices have experienced a 10.85% increase since the end of 2023, influenced by higher production costs, reduced Belarusian exports, increased demand, and seasonal factors. The decline in the cattle breeding stock in Russia, which is expected to decrease by 12.5% by 2030, contrasts with a 7.1% increase in cattle production for slaughter in the first ten months of 2024. Despite these challenges, the National Meat Association predicts a 2.4% growth in beef production by the end of 2024, sufficient to meet domestic demand.

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Original content

Since the beginning of the year, wholesale prices for beef have increased from 574 rubles/kg to 700 rubles/kg, or by 22%, and reached a maximum of at least 2021. Overall, the cost has not risen above 630 rubles/kg over the past three years. During the week of November 18–24, prices may increase to 720 rubles/kg, Vedomosti writes, citing statistics from the National Union of Meat Processors (NUMPP). At the same time, according to the publication’s source in chain retail, beef prices have increased less significantly for retail chains. According to him, the average price has increased by 13% since the beginning of 2024 to November 17. Suppliers of beef products explain the increase in prices by the growth of wholesale prices at factories in Belarus, the largest exporter of meat to Russia. This caused a “chain reaction” on the Russian market, the source explained. In addition, this year there is high demand for all types of meat in Russia, including premium ones, so taking into ...

Source: AgroInvestor