December 29, 2011

Lithuania's meat product prices seen to rise in January

Amid shortage of meat, Lithuania's meat product prices may rise from January, according to local news on Wednesday (Dec 28).

"There is a shortage of raw meat, including both pork and beef. Meat prices have increased considerably hence the prices of meat products will grow as well," Linas Girksas, CEO of meat processing company Krekenavos Agrofirma, told the daily.

The consumption of pork and pork products per capita totals some 70 kilogrammes per year in Lithuania, which is twice more compared with the country's output. Hence the meat processing companies purchase more than half of pork abroad. They also import about 10% of beef for processing.

"There have been no shocks this year – the prices of grain or fodder have not increased. But the prices of meat have been growing steadily in Europe amid its shortage. The rise was the steepest in October and the prices continue to grow," Remigijus Petraitis, CEO of meat processing company Mazeikiu Mesine, told the daily.

The prices of lard, for example, doubled in last three months, whereas the prices of ham, neck or tenderloin rose by one-fifth. The prices of meat products are expected to rise by some 10-12% early next year.

According to Petraitis, the prices of raw materials are mostly affected by China's imports of cheap pork products. 

Meanwhile, the retailers have not yet got any signals from suppliers that the prices of meat products will increase next year.

"The prices of meat products rose by several percentage points in December. However, we have not yet received any messages from the producers that the prices will increase further next year," Olga Malaskeviciene, Maxima spokeswoman, told the daily.