KFC and Rostic’s complained about a shortage of chicken meat
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The shortage of chicken meat, which the catering chains KFC and Rostic’s announced over the weekend, may be associated with the specific requirements of these operators for packaging products and strict conditions for contractors. Other market participants have not noticed a serious shortage of chicken, although they admit that it has risen significantly in price. Manufacturers, faced with increased demand in retail, are redistributing products in favor of retailers.
Fast food chains KFC and Rostic’s announced on October 14 “RIA News”that there is a shortage of chicken meat. Unirest (manages KFC and Rostic’s in the Russian Federation) told Kommersant that the majority of market players faced this problem. Added to this are high prices for chicken, “at historical highs,” the company notes.
A Kommersant source among poultry producers says that Unirest, as a large consumer, is “trying to escalate the situation in the market.” According to him, the company imposes specific requirements on products in terms of packaging and packaging and enters into long-term contracts under which the supplier is almost unable to adjust prices when market conditions change. Another Kommersant source in the market adds that KFC’s strict purchasing conditions are associated with a strong dependence on one product.
However, the founder of the service for selling food sets Elementaree Olga Zinovieva confirms that the problem has been observed in other market participants since April. According to her, now each supply of chicken and turkey meat is cut in volume by 10-30%. In a number of regions, catering operators are faced with a shortage of chicken fillet, since producers do not see the point in cutting up meat, says Irina Izmailova, development director of the Yasno Restaurants company (Goryachiy Tseh, Khochu Puri chains).
The Cherkizovo group calls the shortage of chicken products in public catering temporary and associates it with increased demand in all segments, including retail, against the backdrop of a difficult epizootic situation in the Russian Federation and a general shortage of personnel in the industry.
Therefore, the group notes, manufacturers redistribute part of the volume to large retail chains. The Ministry of Agriculture, with reference to the National Union of Poultry Farmers, also says that retailers are now a priority.
Retail came into first place for meat producers after the pandemic, which was accompanied by a decline in the restaurant market, explains a Kommersant source in the industry. “Unlike public catering, the shortage of chicken in stores, like any other socially significant product, is becoming a resonant topic that, in the current conditions, manufacturers and retailers are forced to immediately stop,” notes another Kommersant interlocutor.
Other participants in the catering market, however, do not observe a serious shortage of chicken.
This was reported to Kommersant by Vkusno – period, the Rakovaya and Anderson networks, and restaurateur Dmitry Levitsky.
But Anderson notes the difficulty of purchasing turkey. “Suppliers now send products only for export and to retail chains,” the network added. They reported that the price of turkey increased from 340 rubles. for 1 kg in July up to 460 rubles in October. Commercial director of the turkey producer Damate, Daria Lashchenko, explains this by increasing the cost of producing poultry meat.
The noticeable increase in purchasing prices worries all catering operators interviewed by Kommersant.
According to Rakovaya founder Evgeny Nichipuruk, for example, chicken meat has increased in price by 20% for catering operators since August. According to data from market participants available to Kommersant, from the end of August to the end of September, the average wholesale price for a broiler carcass in the center of Russia increased from 200 rubles. up to 210 rub. for 1 kg, for fillet – from 350 rubles. up to about 370 rub.
However, there are no systemic problems in the poultry meat market, ABH Miratorg insists. The Ministry of Agriculture speaks about the same thing, where they told Kommersant that the market is supplied with poultry meat, and enterprises are increasing production volumes against the backdrop of growing demand. “All existing capacities are now being used,” the ministry added. As follows from Rosstat data, in January-August 2023, the production of chilled poultry meat increased by 1.3% year-on-year, to 2.3 million tons, poultry for slaughter in January-July – also by 1.3%, to 3 .79 million tons.
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