Meat, dairy markets do not face global risks due to sanctions - ministry
MOSCOW. Aug 14 (Interfax) - The Russian Agriculture Ministry does not think the country's meat and dairy markets face global risks due to the embargo on supplies from various countries, but there may be local risks.
"As to the substitution of meat and dairy product imports, we do not see any global risks, only local risks are possible during the period of contract re-orientation for the supply of products for meat plants. There will not be a problem for the network format," Deputy Agriculture Minister Dmitry Yuryev said at a roundtable in Moscow Wednesday.
"Dynamics may change on the market, but there is no basis to say that this is a global problem," he said.
The deputy minister said that domestic Far Eastern fish was just as good as imported fish, but because of the high transport component cost is higher for now. However, Yuryev did not predict a sharp fluctuation on this market.
The Agriculture Ministry and Fisheries Agency Rosrybolovstvo are observing the price situation on the market in real time. "There is some rise in importer prices when selling of these products, but here their reaction is clear, they are trying to bring up the price," he said.
When it comes to import substitution on the dairy market, Russia will focus on domestic producers and imports from Belarus and Kazakhstan, he said.
"We see opportunities for Belarusian producers to insure this market," he said.
The most difficult situation will be in the expensive cheeses segment, "but generally available production for the population, rather than restaurants, can be replaced with other, perhaps less attractively packaged, but good quality [production]." There should not be a deficit, he said.
National Dairy Producers Union Chairman Andrei Danilenko supported this position. Exclusive cheeses make up under 3% of the market, he said.
There will be a traditional seasonal rise in prices in the fall, Danilenko said. "This has nothing to do with sanctions, it is just normal," he said, adding that during this period it will be important to prevent unfair price rises and panic.
Meat Union President Musheg Mamikonyan also spoke about a possible rise in prices. Smoked sausage may go up by 20% because a lot of imported fat is used in it, he said. "But this is not a catastrophe, as this is from the delicacy group of goods."
Retail Trade Company Association Deputy Executive Director Yekaterina Kumanina said various retailers received messages from suppliers about higher prices on certain foods. "But so far this is not a trend, the market is not worried, and there is unlikely to be any chance soon as agreements are made for 30 to 60 day terms," she said.
The social food basket is almost 100% made up of Russian foods and there is unlikely to be any major price change there. There is a danger of prices going up for imports, but currently trade networks are working in tough conditions: every day each chain provides authorities with price reports on 40 positions. "Chains are interested in holding prices," she said.
The range on shop shelves is changing, but this does not mean it is getting worse, it is just different, he added.
