FAS asked the three largest producers to justify chicken prices
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The Federal Antimonopoly Service (FAS) sent requests to the largest chicken meat producers – PJSC Cherkizovo, GAP Resurs and JSC Prioskolye – to establish the validity of product prices, the department’s press service reported.
The FAS emphasizes that companies “occupy a collective dominant position in the product market” and admit that they can jointly influence the competitive environment as an entity with a dominant position.
“In this regard, in case of abuse of this provision and establishment of monopolistically high prices, antimonopoly measures may be applied to organizations, including turnover fines,” the department said in a statement.
“The service sent requests to these companies in order to analyze the validity of the prices set,” the FAS clarified.
The department also reminded that Cherkizovo and GAP Resurs must be sent to the justification service in case of a price increase of more than 5%.
This is the second request for prices from poultry farmers from the FAS in a year. Last time service reported about this on August 19 against the backdrop of a record rise in prices for broiler carcasses and fillets.
According to the National Union of Poultry Farmers, GAP Resurs produced 1 million tons of broiler in live weight in 2022, the Cherkizovo group – 846,000 tons, JSC Prioskolye – 455,000 tons. The companies occupy the first three places in the NSP ranking in terms of volume production. In total, according to Rosstat, Russia produced 6.5 million tons of chicken in live weight in 2022.
At the beginning of August, the head of the Ministry of Agriculture Dmitry Patrushev predicted reduction in prices for all types of meat in late August – early September. According to NSP price monitoring data, at the end of September, broiler meat continues to rise in price in the wholesale segment – up to 208 rubles. per kg per carcass, up to 368 rubles. per kg per fillet. A year ago, prices for these categories did not exceed 145 and 230 rubles. per kg respectively.
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