leading chicken meat producers began to reduce wholesale prices – Kommersant
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Russia’s largest chicken meat producers – the Cherkizovo group, GAP Resurs and Prioskolye – notified the Federal Antimonopoly Service (FAS) of their decision to reduce selling prices for broiler carcasses. The FAS also recommended that retail chains proportionately reduce retail prices for chicken meat.
“PJSC Cherkizovo Group, GAP Resurs and JSC Prioskolye, which occupy a collective dominant position, notified the FAS Russia about the reduction in prices for broiler carcasses based on the results of interaction with the department. The company sent similar letters to retail chains,” the statement says. message FAS.
As Igor Karavaev, chairman of the presidium of the Association of Retail Trade Companies (AKORT – unites large food retailers), told Kommersant, not all retail chains included in the association have yet received information about price reductions from chicken meat suppliers. At the same time, according to him, retail chains, by reducing their own profitability, continue to fulfill their voluntary obligations to contain prices and markups on socially important food products.
In particular, the average markup on a broiler carcass for the nine months of 2023 for chains included in AKORT is negative, notes Mr. Karavaev. A similar situation continues in the first week of October. In general, only in 10 out of 40 weeks of this year the average price for chicken meat exceeded the cost of wholesale purchases, while during these periods the markup did not rise above 1.7%, ACORT adds.
On October 14, fast food chains KFC and Rostic`s announced a shortage of chicken meat. According to a Kommersant source among poultry producers, the shortage of chicken meat may be due to the specific requirements of these operators for packaging products and strict conditions for contractors. Unirest (which manages KFC and Rostic`s in Russia) claims that most market players have faced this problem.
Read more in the Kommersant article. “A bird flies out of fast food”.
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