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Feb 18, 2021
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Sausage preparing to bite

Sausage preparing to bite

Photo: Dmitry Serebryakov / TASS

An appeal of domestic meat processors to retailers with an appeal to increase purchase prices for sausages, sausages and so on by 15% can raise retail prices by 30 or even all 60 rubles.

As usual, suppliers say that the cost has increased. Officials: nothing like that. There are enough meat procurers in the country today. And with the normal development of market relations, the price of products should be regulated by competition. If anyone can interfere with the pricing system, it is the Federal Antimonopoly Service. And then on condition of some malicious conspiracy. But in this dispute, oddly enough, the antimonopoly service does not appear at all.

So, processors claim that raw materials are increasing in price for several reasons, for example, because of diseases leading to a decrease in livestock. The National Union of Pig Breeders clarified that in December last year, due to outbreaks of ASF, up to 500 thousand pigs had to be destroyed. In addition, according to the head of the National Meat Association Sergey Yushin, meat processors want to raise prices also due to the fact that the cost of spices (pegged to currency), shell and packaging, transportation and electricity has increased.

We again plunge into a situation of “manual control” when we have to choose between business and consumers. Deputy of the State Duma, Secretary of the Communist Party of the Communist Party of the Russian Federation for International Relations and Economics Leonid Kalashnikov, commenting on the stalemate, expressed the opinion that the government is failing to ensure the country’s food security.

– Two and a half months ago, I spoke about ministers who remember that they should monitor prices only when they “take off.” I spoke about this on one of the federal channels, where I am still not invited. You remember, it was about vegetable oil, sugar. And after that there was a headwash on the part of the President of the Russian Federation, dragging out the entire government.

It seemed to me that they should have concluded. Then, in particular, I spoke about the fact that, in fact, the minister’s duty is to think in advance that there may be an increase in demand abroad (as they said) for some products. “And now we are introducing export duties.” Well, why didn’t you do this before? You have analytical management. You must do this beforehand. But I do not see these actions. Now again – prices have gone down, and they will begin to collect producers.

For how many years they have been boasting unrestrainedly that “we have increased exports” and that we are the first in the world to sell grain for export. But, first of all, we sell fodder grain because there is no cattle that needs to be fed with this fodder grain. And if we sell grain, which should go for the production of pasta, which was the question, then this is doubly criminal. Because flour can be used to make more than 200 products. It’s like selling crude oil, crude gas. There is nothing to be proud of. It is better to process them in our country. And the same applies to baked goods and other grain products.

Thus, according to Kalashnikov, the government’s actions should not be limited to outright bans on price increases. It is necessary to stimulate internal production. In addition, active measures to curb inflation threaten a natural increase in the shortage of products, which ultimately inevitably leads to an even higher rate of rise in food prices.

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Economy
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