In September 2024, butter prices increased by more than 8%, which also led to a shortage in the Novosibirsk region. Experts believe such a price rise could have been caused by sanctions and an increase in milk prices, after a significant drop last year.
Causes and consequences
According to the Association of Retail Trade Companies (AKORT), with a price increase of 8.4%, butter became the leader in price increases in retail. Rosstat noted an increase of 4.7% in retail trade. Since the start of the year, oil prices have increased by 17.6%.
Marina Petrova, economist and CEO of Petrova 5 Consulting, calls the main reason for such significant growth the rise in the cost of dairy raw materials.
“The fact is that last year the prices of raw milk decreased and this year there is a correction. There is growth, so it also affects the final product. In addition, of course, the price is affected by the growth of fuels and lubricants and logistics costs, which we observe throughout the dairy production chain: from feed, seeds to equipment, in through packaging solutions, which have also seen an increase due to sanctions. pressure. I emphasize that an average cost increase of 5% is a relatively small increase and entirely adequate. I remind you that the cost was also affected by the key rate, which is now 18%. And, according to forecasts from the Central Bank, this rate will soon be increased to 20%. All this affects the cost of money, and therefore the cost of the final product. Indeed, there is an increase in demand for dairy fat in general, including butter and skim milk fat.
Before the introduction of sanctions against the Russian Federation, milk fats were supplied to Russia from New Zealand and a number of other countries, but now only Belarus remains. Butter is a product with a high milk content, which means that it requires a large amount of milk for its preparation.
It is specified that the rise in butter prices has a notable impact on confectioners. The shortage of butter, the rise in its prices as well as its poor quality are causing a significant increase in the price of confectionery products, as the owner of the Gospodar confectionery factory, Sergei Surmach, reported to BFM. He also added that the problem is not just about butter: rising prices have, in one way or another, affected almost every ingredient used by confectioners, even plastic packaging. To retain customers, confectioners will have to lower prices for confectionery products, however, not everyone has the resources to do this, but everyone, at the same time, now has an increased risk of coming across products counterfeit when buying butter.
However, independent dairy expert Dmitry Mironchikov declared “Parliamentary Journal”, which can correct the situation with rising prices. According to him, Russian authorities expect an increase in oil imports from Iran and India.
How does this affect the Novosibirsk region?
In addition to raising prices, a number of manufacturers have simultaneously reduced the weight of butter packaging in the region. Just two months ago, a 150-gram pack of butter could be bought on average for 200 rubles. Nowadays, a 150-gram package of butter costs about 220 rubles.
Along with the price increase, local residents began to notice that stores sometimes did not have oil for sale. As for online stores with grocery delivery, there is no interruption in the availability of oil, however, the price of 180 grams of 82.5% oil is set at almost of 300 rubles.
Earlier, NDN.info wrote that Residents of Novosibirsk began to find expired products on store shelves more often. Recently, on social networks, residents of Novosibirsk have increasingly begun to post photographs of spoiled products found on store shelves. The NDN.info journalist found out which spoiled products are most often presented to customers and what measures are taken in the region to prevent the sale of expired products.