According to livestock breeders in the country, for normal development of meat industry in Belarus meat prices should be raised by 50% to achieve normal development of this industry.
As it has been found in a new research organized by the Ministry of Economics, 91% of meat producers consider that the current price level does not allow businesses to reach profitability.
The specialists of “The Economic Research Institute of the Ministry of Economy of the Republic of Belarus” ascertain the following results, “Analysis of the distribution of responses on the required level of increase in selling prices of the two predominant types of agricultural activity – production of milk and meat shows that:
- Only 8—9% of the managers perceive that the current level of prices is the best to achieve the desired level of return on sales
- 80% of executives believe that there are requirements for a significant increase in sales prices.”
A fifth of the interviewed respondents who are executives of agricultural organizations have supported the idea of increasing the selling prices by half or more.
Purchase prices are established by the Government of Belarus on the basis of the state order. Manufacturers can market meat on its own at a reasonable price for them. However, it is most unlikely that somebody will buy it in this case.
“Meat prices in Belarus lag 15—20% behind the prices in Russia. So one kilogram of poultry meat in our country is purchased on average of two dollars in the last few months. As a result, we have absolutely no profit and depending on cost of forages we are compelled to work at a loss or to zero profitability. Business in the country will develop only if prices rise to 2.5—3 dollars per kg,” said the local businessman Yury Shishkevich.
At the same time, analysts are skeptical that meat prices in Belarus will really grow.
“The increase in procurement prices is impossible now because meat is an important social product and any minimal increase in prices will make it inaccessible to a significant portion of the population. The current economic situation in Belarus is difficult. The average salary in the country is 455 dollars a month and it has decreased by 8% for a year. Presently, the government is endeavoring at all costs to avoid a growth in prices on socially significant products,” noted the agricultural analyst Yevgeny Gehrden.