Road fur coat for the New Year – Kommersant
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One of the traditional Russian dishes on the New Year’s table, herring under a fur coat, may become more expensive. The reduction in the supply of herring on the domestic market due to decreased imports and lower catches affects its cost. Processors have already notified retail chains of their intention to increase prices by 10% in December-January. Rosrybolovstvo does not see a shortage of fish, but admits that some players may raise prices due to high demand before the New Year holidays.
Kommersant has obtained a letter in which a large fish processor, Baltic Bereg (brands Baltic Bereg, Mare), notifies retailers of a 10% increase in prices for herring fillet products in December. As stated in the document, the increase in selling prices is caused by the shortage and rise in price of raw materials. “Baltic Coast” did not answer “Kommersant”. The canned food manufacturer Russian Fish World also notes a decrease in stocks of herring from the last fishing season and an increase in prices for raw materials. Kommersant’s interlocutor at another processor also speaks of a reduction in herring volumes among traders.
One of the retailers notes that almost all herring processors announced an increase of 10% from December to January 2024 due to a shortage of raw materials. Lenta refused to talk about specific suppliers, noting that verifying the validity of notifications of price increases takes up to 30 days.
The Fishing Union (Russian Sea, Meridian, etc.) explains that the import of herring due to changes in logistics and a jump in exchange rates has not recovered to the level of 2021, and the catch in the Far East has fallen. According to the association, in January-November 2023, 26 thousand tons of Atlantic herring were imported into Russia, which is 8% more year-on-year, but 37% less than January-November 2021. The catch of Pacific herring in the Far East fell by 6% year-on-year, to 370 thousand tons, and exports increased by 13%, to 290 thousand tons, the Fishing Union adds. As a result, they explain, wholesale prices for Pacific herring in the Far East by the beginning of December increased 2.1 times year-on-year, to 110 rubles. for 1 kg, and Atlantic herring in Moscow has risen in price by 6–10%, to 115 rubles. for 1 kg.
President of the All-Russian Association of Fisheries German Zverev says that most processors in the European part of the Russian Federation use mainly imported Atlantic herring. The weakening of the ruble and a decrease in supply could affect the cost of raw materials, he believes, adding that the transition to herring from the Far East will require factories to rebuild production chains, and long and expensive logistics is reflected in prices. The availability of raw materials can be increased by expanding subsidies for fish transportation by rail to cover herring, Mr. Zverev believes.
The manager of Dobroflot Group of Companies, Alexander Efremov, associates the rise in herring prices primarily with a 30% increase in the price of fuel over three to four months, which takes up at least 25–30% of the structure of production costs. Executive Director of the Association of Industrial and Trade Enterprises of the Fish Market Alexander Fomin adds that the purchase of herring traditionally increases before the New Year holidays and the lack of raw materials may further affect prices.
Rosrybolovstvo told Kommersant that prices are affected by “many factors not related to industry activities, including changes in exchange rates, and individual companies may enjoy increased demand for some types of fish in the pre-New Year period.” The agency emphasized that by mid-December, Russian fisheries had increased their catch by 10% year-on-year, to more than 5.1 million tons, and there was no shortage of fish, especially popular species.
According to NielsenIQ, in January-November, sales of herring in retail chains grew year-on-year by 10.7% in volume and by 12.5% in money. As Mr. Fomin notes, herring is one of the most popular fish in Russia with a wide range at different prices, so the rise in price of some items is unlikely to greatly affect demand. In 2024, with an increase in catch in Russia, he expects, the situation in the segment should stabilize.
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