Unsanctioned suppliers raise meat prices after Russian food embargo
MOSCOW. Aug 26 (Interfax) - Countries whose meat products were not affected by Russia's food embargo are raising their meat prices, Executive Director of the National Meat Association Sergei Yushin told Interfax.
Under such conditions, experts from the Russian market are talking about the necessity of quickly increasing domestic production, he added.
From the moment the embargo was announced, export prices for pork and poultry have grown significantly in Brazil, which is the only serious alternative supplier of this product, Yushin said. In particular, prices for chicken legs increased to $2-$2.2 per kilogram from $1.35-$1.45.
"Pork increased in price by an average 20% or more. And Brazilian exporters' pork liver after their right was restored to ship byproducts to Russia increased in price more than twofold, and pork tongue - more than 50%," he said.
Yushin added that this process included Belarusian poultry suppliers as well. The price for chicken carcasses has grown by around 8%-10% in the last several days.
The only market with stable export prices is the beef market.
Yushin said the export prices alternative suppliers were offering would not allow importers to bring products into Russia and make a profit since prices on the Russian market were currently lower than the foreign cost of sales.
"Subsequently, until prices in Russia grow or exporting countries lower prices, primarily for pork, it is difficult to expect new procurements in the needed volume," he said.
"For that reason, events on the world meat market yet again confirm that the only correct way to resolve the issue of providing consumers with affordable meat is to quickly increase our own production," Yushin added.