Pork prices hit eight-year high in Russia

Analysts attribute the surge to mounting demand

Prices for live pigs and pork in Russia have reached their highest levels since 2015, according to data tracked by consulting firm, AD Libitum, as quoted by business daily Vedomosti.

The figures show that prices for commercial pork earlier this week saw a 7% week-over-week increase, representing a 20% surge compared to the same period a year ago, and hitting an eight-year high.

The growth in prices has resulted from a recent shortage, with meat producers unable to satisfy demand from wholesale dealers and processors, AD Libitum analysts say, warning that prices could continue to rise in the coming weeks.

Konstantin Korneev, executive director of the Russian consulting firm Rincon Management, told the media that pork prices have been catching up with prices for chicken, which had previously seen a sharp surge. He added that processors are shifting towards pork as chicken is currently more expensive.

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According to AD Libitum, prices for broiler carcasses saw an increase of 4% in the week ending August 6, which was 38% more expensive than the same period last year. Meanwhile, chicken filet prices increased by 3% compared to the previous week, and 42% versus the same period a year ago.

According to the figures from the national statistics agency Rosstat, the production of pork in live weight increased by 5.9% to 2.7 million tons during the first six months of the current year, while chicken output saw a rise by 1.6% to 3.2 million tons.

Last week, Rosstat reported that prices for chicken in Russia in June hit record highs after surging by 6.8% month-over-month. Analysts attributed the price hike to increasing costs related to feed additives, gasoline, equipment and consumables.

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