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Russians explained the sharp rise in butter prices
The growth of retail prices for butter in Russia is connected with the increase in production costs, including the purchase of raw materials, logistics and packaging. It is also connected with significant growth on the part of the retail network. This was stated by the Deputy Chairman of the Board of Directors of the Association "Rusprodsoyuz" Dmitry Leonov.
"The reason for the price increase is the growth of production costs, such as the cost of purchasing raw butter and milk fat, logistics costs and packaging costs. <…> Prices are affected by the increase in key rates, labor shortages and problems with servicing foreign equipment. Don't forget about the markup for retail chains, which averages over 70%." Leonov told TASS:
Dmitry Leonov pointed out the need to reduce price growth by retail chains in order to minimize the growth of prices on store shelves. He emphasized that manufacturers are already partially transferring the growth of costs into selling prices and are trying to contain the growth by reducing profitability.
Currently, the average retail price of butter in Russia has increased significantly and reaches 1040.7 rubles per kilogram. This is 20.4% more than in January of this year.
Earlier, Deputy Speaker of the House of Representatives Boris Chernyshov asked Minister of Economic Development Maxim Reshetnikov to consider the possibility of introducing a retail price target for butter. According to him, these measures could prevent further price increases and make the product more affordable for Russian consumers. Prices for sugar beets, carrots and potatoes fell in late August, the National News Service reported.