Skyrocketing Dairy Prices: highest increases noticed in dairy products in Krasnoyarsk region
In the Krasnoyarsk region, an alarming surge in prices has gripped numerous products over the past year. But nothing compares to the skyrocketing cost of milk — a staggering 20% increase, verging on a third! Analysts shed light on the reasons behind this shocking price hike.
Central Bank had some insights to share about the year-on-year increase in prices for various product categories.
Since the start of 2024, milk prices have shot up by 18%, while cream and cheese prices have jumped by 20%. Sour cream, whipping cream, and butter almost doubled in price! In January 2024, butter cost around 931 rubles per kilogram, but now it's close to 1271 rubles. A liter of milk used to sell for about 77 rubles; today it's over 90 rubles.
According to Sergei Zhuravlev, branch manager of the Bank of Russia in Krasnoyarsk, this situation unfolded due to surging consumer demand for dairy products. Farmers, on the other hand, have seen their expenses soar, leading them to pass their costs onto consumers in the form of increased prices.
Dairy processors have faced rising costs for raw materials and logistics services, wages have gone up due to the overall labor shortage, Zhuravlev added.
The same factors are behind the increase in chocolate and baked goods prices. Imported cocoa beans and confectionery fats have become costly, and so has their transportation.
Fish prices have skyrocketed too, due to declining fishing and processing volumes. The price of frozen and refrigerated fish products has risen, along with caviar — quite a surprise for New Year's celebrations!
For instance, according to data from Kransoyarskstat, a kilogram of undressed frozen fish cost 275.5 rubles in January of the previous year, while now it's 357.5 rubles.
But there's some good news too. Chicken, cereals, eggs, bananas, grapes, and squid have all become cheaper over the past year.
"Prices for these products have stabilized over the past year, in part due to the expansion of supply. For instance, after a significant price hike for chicken at the start of 2024, the supply of poultry and eggs from other regions increased," explained Sergei Zhuravlev.
In summary, inflation stood at 10% for the year in January, with the Krasnoyarsk region slightly exceeding this figure (10.14%) compared to the average for Russia (9.92%) and the Siberian Federal District (10.12%). However, figures for Omsk, Novosibirsk, and the Republic of Altai suggest inflation rates surpassing 11%.
Sources: Kransoyarskstat, Bank of Russia, Central Bank, economy-watch.com
Potential factors contributing to the price increase of milk include economic instability, inflation, supply chain disruptions, market dynamics, government policies, environmental factors, and global market trends. The somewhat unusual economic environment of Russia, with its ongoing sanctions and economic transformation, could further exacerbate these issues. However, data specifically related to the Krasnoyarsk region was not readily available in the provided sources. Don't forget to consult your local provider for the most accurate and up-to-date pricing information!
The Central Bank has also noted a significant increase in prices for various product categories, such as milk, cream, and cheese. Sergei Zhuravlev, a branch manager of the Bank of Russia in Krasnoyarsk, attributed this to a surge in consumer demand for dairy products, while costs for raw materials, logistics services, wages, and more have risen for dairy processors. Similarly, the rise in the cost of chocolate and baked goods can be linked to expensive imported cocoa beans, confectionery fats, and transportation.
