steak index
10 November 2021 0 comments
The Ministry of Agriculture and the Ministry of Energy want to abolish import duties on beef and pork to curb meat prices. How much have they grown recently and why?
The Russian authorities may cancel duties on imports of beef and pork. This measure may be introduced to curb domestic prices. What are restaurateurs and animal breeders talking about?
According to the founder of the chain of restaurants "Meat & Fish" Sergey Mironov, in his establishments, a rib eye steak made of marble beef cost about 2 thousand rubles, and it is worth it. And prices have not risen recently. But, according to the businessman, this dish is sold rather at a loss — that is, in some positions the establishments earn money, and in some they keep prices so as not to scare away customers. At the same time, beef suppliers raised prices. And it's not just the pandemic. There were several factors. And one of them is that since 2014 we have not been buying meat in the USA and Australia, and sanitary restrictions have been imposed on supplies from Argentina and Uruguay, says restaurateur Sergey Mironov.
Sergey Mironov founder of Meat & Fish Restaurants
"We don't have imported marble today. Some countries are closed because we have anti-sanctions - this is America, Australia. And those countries that could directly supply us - Argentina, Uruguay - were closed for some violations. As a result, there is no alternative marbled beef, prices will continue to rise. Prices are rising faster than inflation - that's for sure. This is a market situation, at a time when demand really exceeds supply, and demand exceeds supply - this is inevitable."
Another reason for the rise in price of beef is related to the weather, says Stavropol farmer Sergey Kolesnikov. Livestock breeders have such a concept as feed conversion, that is, the ratio of feed consumed and products produced - meat and milk. A cow or a bull needs to be raised longer than a chicken or a pig, and, accordingly, more to feed. And because of last year's drought, there was a case - there was a lot of meat, and prices for it did not grow. And now the consequences have just come, explains Sergey Kolesnikov.
Sergey Kolesnikov Stavropol farmer "The price - everyone has noticed it now - has increased. The trend was actually laid down a year ago. It was already clear to me at that time that meat was very cheap, and due to the lack of feed, a large number of cattle were very much cut out, and as a result, the price did not rise then. And now it's just a consequence, since there are no animals in sufficient numbers."
Now the authorities can cancel the import duty on imported beef in order to stabilize prices. At the same time, according to the National Meat Association, beef on bones has risen in price by about 28% over the past six years. That is, on average, a little more than 4.5% per year. For comparison, inflation was higher in 2020. And now, according to the latest data from Rosstat, the overall growth in consumer prices has already exceeded 8% year-on-year. And if you take boneless beef, it has risen in price by only 22% over the same six years, or, on average, by 3.6% per year. And according to these statistics, the "steak index" looks quite calm against the background of other price fluctuations.
The Russian authorities may cancel duties on imports of beef and pork. This measure may be introduced to curb domestic prices. What are restaurateurs and animal breeders talking about?
According to the founder of the chain of restaurants "Meat & Fish" Sergey Mironov, in his establishments, a rib eye steak made of marble beef cost about 2 thousand rubles, and it is worth it. And prices have not risen recently. But, according to the businessman, this dish is sold rather at a loss — that is, in some positions the establishments earn money, and in some they keep prices so as not to scare away customers. At the same time, beef suppliers raised prices. And it's not just the pandemic. There were several factors. And one of them is that since 2014 we have not been buying meat in the USA and Australia, and sanitary restrictions have been imposed on supplies from Argentina and Uruguay, says restaurateur Sergey Mironov.
Sergey Mironov founder of Meat & Fish Restaurants
"We don't have imported marble today. Some countries are closed because we have anti-sanctions - this is America, Australia. And those countries that could directly supply us - Argentina, Uruguay - were closed for some violations. As a result, there is no alternative marbled beef, prices will continue to rise. Prices are rising faster than inflation - that's for sure. This is a market situation, at a time when demand really exceeds supply, and demand exceeds supply - this is inevitable."
Another reason for the rise in price of beef is related to the weather, says Stavropol farmer Sergey Kolesnikov. Livestock breeders have such a concept as feed conversion, that is, the ratio of feed consumed and products produced - meat and milk. A cow or a bull needs to be raised longer than a chicken or a pig, and, accordingly, more to feed. And because of last year's drought, there was a case - there was a lot of meat, and prices for it did not grow. And now the consequences have just come, explains Sergey Kolesnikov.
Sergey Kolesnikov Stavropol farmer "The price - everyone has noticed it now - has increased. The trend was actually laid down a year ago. It was already clear to me at that time that meat was very cheap, and due to the lack of feed, a large number of cattle were very much cut out, and as a result, the price did not rise then. And now it's just a consequence, since there are no animals in sufficient numbers."
Now the authorities can cancel the import duty on imported beef in order to stabilize prices. At the same time, according to the National Meat Association, beef on bones has risen in price by about 28% over the past six years. That is, on average, a little more than 4.5% per year. For comparison, inflation was higher in 2020. And now, according to the latest data from Rosstat, the overall growth in consumer prices has already exceeded 8% year-on-year. And if you take boneless beef, it has risen in price by only 22% over the same six years, or, on average, by 3.6% per year. And according to these statistics, the "steak index" looks quite calm against the background of other price fluctuations.