Sausage and poultry can go up a lot

2021-02-20

Widespread poverty is on the way

Producers of poultry and eggs offered retail chains to revise contracts for the supply of products, raising prices by 10%. The retail chains informed the Ministry of Industry and Trade about this. Russian poultry union and the National Meat Association noted that the cost of production increased by 25% within the year.

At the same time, manufacturers of sausages have also begun to offer retail chains to revise contracts and increase selling prices by 10-15%. Meat processing companies believe that all that happened due to the rise in raw meat prices. The bone-in pork cost 119 rubles per 1 kg a year ago and now it is already 134-138 rubles. Also, the higher cost of sausage products is influenced by the increase in the cost of power generation, spices, and sausage casings.

As we can see that such cheap sources of protein as chicken and eggs (although chicken meat cannot be considered a full-fledged substitute for pork and beef), which serve as the main source of protein for the poor, are subject to a rise in prices. Also, the increase in prices may affect sausages. Of course, sausage products cannot be regarded as healthy food, especially modern Russian ones, however, in the absence of cheap and high-quality catering for many workers, they become a necessity, allowing them to reduce the time for cooking. Therefore, the rise in the price of these products will hit, first of all, the working and low-income people.

Solving the problem of growth in the cost of raw materials and energy resources, manufacturers are taking the easiest way – increasing selling prices. However, there is another way to get it – reducing production costs by introducing advanced processing equipment, improving production technology. But this typically requires new considerable investments and operating costs, so the business owners are going to have to do this the old-fashioned way: to shift the losses onto the shoulders of workers by raising selling prices, on one hand, and on the other, by cutting costs by means of reducing wage tariffs of workers.

If we consider that the rise in prices for poultry products and sausages is taking place against the background of the rise in prices for other types of food, then we will see how much the level of well-being of workers will fall. So, only in the first week of February, prices for potatoes, pasta, onions, cucumbers, and tomatoes have risen. In fact, rising prices cause going broke and impoverishing millions of workers and their families.