September 24, 2003

 

 

Russian Meat Prices Continue to Increase

 

According to local market researchers, meat prices continue to rise as a direct result of trade policy actions taken by the Russian Government.  Poultry consumers are the hardest hit-prices have increased by 46 percent over the last few months-due to the significant role that now artificially limited imports played in total domestic consumption.

 

Summary

 

According to local economic researchers, meat prices have continued to move upward since the imposition of import quotas and tariff rate quotas (TRQs) in May and April, 2003, respectively.  Particularly hard hit is poultry; domestic prices for this product have grown by 46 percent during the April-August period.  During a similar period, beef prices grew by 15 percent, while pork prices were mostly unchanged.  For the meat industry as a whole, imports are now less profitable, a fact which translates to higher consumer prices and reduced product availability.

 

General Price Trends

 

Table 1 offers domestic price data for the three main meat products in Russia. Notable amongst the figures is the rapid increase, by 46 percent in only five months, in poultry prices after the imposition of the import quota.  Also significant is the fact that the average price for poultry measured in August was a record for the previous ten months.  This increase is a direct result of restricting exports to a market that is expanding, and the inability of domestic producers to fill the gap between supply and demand.  The greatest price increase was seen for boneless frozen breasts (up to 80% on both domestic and imported products), while the price rise for chicken leg quarters was less significant.

 

Beef and pork prices did not rise as rapidly as those for poultry for several reasons.  First, the share of imports in total domestic consumption is lower than for poultry, reducing the effect of trade restrictions.  Second, much of Russia's beef, and a smaller portion of pork, imports are sourced from CIS countries, which are outside the TRQ's grasp.

 

          Table 1.  Russia Average Meat and Poultry Prices, November 2002-August 2003

 

 

Beef

Pork

Poultry

November, 2002

52,00

50,00

40,00

December, 2002

52,00

51,00

41,00

January, 2003

51,00

49,50

40,50

February, 2003

50,00

51,50

39,00

March, 2003

47,00

54,00

35,00

April, 2003

46,00

47,00

39,00

May, 2003

50,70

54,70

45,30

June, 2003

50,00

53,60

46,00

July, 2003

54,00

53,00

49,00

August, 2003

54,00

54,00

57,00

 

         Source: APK-Market - Institute of Agricultural Marketing

         Data in rubles per kilogram

 

        Table 2.  Moscow Wholesale Poultry Meat Prices, January - August 2003

 

Date

Exchange Rate, ruble/$

Domestic chicken

Imported chicken

Frozen carcasses

Frozen breasts, boneless

Frozen leg quarters

Frozen carcasses

Breast, boneless

Frozen leg

Quarters

1/30/2003

31.80

42.81

58.28

47.05

38.55

55.47

34.69

2/28/2003

31.58

42.32

56.28

41.16

40.81

54.89

35.04

3/30/2003

31.38

41.68

55.17

42.27

42.15

54.15

34.92

4/30/2003

31.10

41.77

55.67

44.50

41.90

56.38

34.42

5/30/2003

30.67

43.93

57.62

45.00

43.76

62.17

39.55

6/30/2003

30.35

49.07

59.32

49.50

48.27

73.08

39.77

7/30/2003

30.25

53.55

78.00

50.83

55.78

81.69

41.76

8/30/2003

30.50

59.04

99.67

59.62

59.09

101.00

44.81

 

          Source: Russian Institute for Agricultural Studies (IKAR)

          Data in rubles per kilogram

 

         Table 3.  Wholesale Prices for Domestic and Imported Products, Offer Price

 

Date

Exchange rate, ruble/$

Domestic beef

Imported beef

Domestic pork

Imported pork

30.01.2003

31.80

50.17

48.40

48.75

45.50

28.02.2003

31.57

51.17

49.95

44.75

46.14

30.03.2003

31.38

48.67

48.01

40.37

44.90

30.04.2003

31.10

48.00

46.35

40.25

44.62

30.05.2003

30.66

48.00

48.52

41.02

48.45

30.06.2003

30.34

47.00

49.45

42.51

49.00

30.07.2003

30.24

49.00

49.30

42.39

49.11

30.08.2003

30.50

49.00

49.57

43.50

51.83

 

         Source: Institute for Agricultural Market Studies (IKAR)

         Data in rubles per kilogram

 

 

Source : USDA