Which products become expensive

The second working week began with Russian rouble weakening and fluctuations on the currency market still do not clear. Many economists consider that we are at the beginning of the new world crisis which is caused by pandemia of Corona virus and OPEC+ deal termination. Another part of the expert community is sure that there will be no crisis but just correction. However any instability firstly impacts on price increase for food products. Especially many of the food industry branches purchase the raw materials abroad and bear the losses at the rapid rise of US dollar against the Russian rouble.

Price increase is mostly predictable for the following food produts

An expert in the field of regional economics, professor of the Russian Presidential Academy of National Economy and Public Administration Sergey Raevskiy in the interview to life.ru has made the following forecast: “Crop farming in our country is not bad developed that is why the prices for vegetables, groats and sugar will not rise a lot but only for 3-5%. There is a concrete supply-and-demand balance for these products. Moreover the sugar production volumes have increased and there is no reason to rise the prices for this product”.

The Professor of the Russian Presidential Academy of National Economy and Public Administration Sergey Raevskiy has supposed that fish will be expensive for 10-12%. “The fishers are not interested to sell fish on the local market. They are more interested to sell for export. Due to the weakening of the Russian rouble they will try to sell the products abroad. There will be less fish for the local market at the same demand but the number of supplies will be reduced“.

An expert predicts that mostly the price increase will be connected with meat, eggs and dairy products because feeds for farm animals are manufactured abroad and purchased for foreign currency as Raevskiy said.

Beside that not only import feeds but also food additives for them are used on the Russian farms. It is also known that for the production of broiler chicken hatching eggs are also imported in the big amounts.

In addition to mentioned above the price increase for separate brands is expected. Mostly because of the import raw materials. For example, it can most notably impact on ketchup & sauce & juice & beverages manufactures for which tomato paste of Iranian, Chinese, European origin is used. The same situation with juice concentrates.

In conclusion it is worth to remark that ordinary people should not become panic as the prices for food stables will not change significantly (according to adjusted government instructions #530 dated 15.07.2010. There are 24 products in the list of basic need products among which are: meat, dairy, butter, vegetables, sugar, salt, flour, bread, groats (rice, buckwheat), tea. The prices for these products are controlled by regional authorities and also Federal Antimonopoly Service (FAS).

We would like the food manufactures take long views and consider the offers for the wholesale supplies of tomato paste, juice concentrates, fruit and vegetable purees on favourable terms represented by FINE UNION company. You can find a full range of products on our web-site and ask all the questions to our managers by the phone # :+7 (812) 640-01-60.