Pork neck before the May holidays rose to a record level in five years

Pork neck – one of the main cuts for barbecue – this week (from April 24) has risen in wholesale prices by 13% to 450 rubles. per kg. This is evidenced by the price monitoring data of the AD Libitum analytical agency, which Vedomosti has reviewed. This is a record price level for this type of cut over the past five years, since the start of observation. Previously, the price for the neck did not exceed 412 rubles. per kg. Compared to 2022, the cost of a cut increased by 18%.

Experts interviewed by Vedomosti attribute the growth to the May holidays. Director General of the National Union of Pig Breeders (NSS) Yuri Kovalev explains the growth with long weekends and good weather [в конце апреля]. Before the holidays, pork traditionally rises in price due to increased demand, adds Sergey Yushin, head of the National Meat Association. According to him, this year the dynamics is enhanced by the early arrival of heat.

A significant increase in wholesale prices for the neck is due to the fact that it occupies a small share in the pork carcass, while the consumer prefers this particular cut in May, which forms a high price, explains Yushin. According to him, there are offers on the market and above 450 rubles. per kg. Other cuts, which can also be used in barbecue, are sold in the wholesale link for almost half the price – at the level of seven years ago, says Yushin. The cost of a blade, according to AD Libitum, increased by 5% during the week to 230 rubles. per kg., ham – by 6% to 240 rubles. per kg. The neck is a super-delicacy cut and therefore the price is higher, adds Kovalev.

Records a significant increase in wholesale prices and networks. So the representative of one of them noted that the neck in the purchase is already 457 rubles. per kg, while in a week it increased by 10-13%. But, the source added, the retailer does not raise the cost on the shelf. A source in another retail chain says that they traditionally do not broadcast such seasonal and short-term increases from suppliers to retailers. According to him, it is preferable for retailers in this situation to “invest in price” – to temporarily reduce margins, but maintain customer loyalty.

In the wholesale sector, prices for pork neck have indeed increased by more than 13%, confirms Igor Karavaev, Chairman of the Presidium of the Association of Retail Trade Companies (AKORT). But he said retailers are not passing the full volume of the increase on to the shelf price to keep consumer demand and in-store traffic strong.

The executive director of the agricultural consulting company Rincon Management, Konstantin Korneev, says that the situation with the neck is a rise in prices at a particular moment, and in the near future the wholesale cost will begin to roll back down. Including because, with a price tag of 450 rubles. per kg and even 480 rubles. per kg, the cost of neck almost compares with that of beef, making pork less interesting to consumers.

Immediately after the May holidays, the excitement will subside, and wholesale prices will collapse, Kovalev predicts. The price of live pigs has already gone down by the end of the week, Yushin adds: if at the beginning of the week they were sold in wholesale at a price of 125 rubles. per kg and above, then by Friday prices fell to 118 rubles. per kg. He attributes this, among other things, to the fact that networks and processing have purchased all the necessary volumes.

Pork production continues to grow, Kovalev points out. For the first quarter, the output of pork in slaughter weight increased by 5.6% to 1.1 million tons. This is a fundamental factor and the cost of the main cuts will gradually return to the usual levels typical for this year, Yushin concludes.