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Produktukainos.lt announced the average prices of agricultural and food products in the Lithuanian markets in 2019-2020. in early September.
When analyzing the statistical information, it is noted that the prices of Lithuanian cucumbers and short tomatoes were the ones that increased the most. Also pork products: bacon, boneless ham, boneless neck, boneless loin.
Pig prices are determined by several factors
The prices of pork products increased differently compared to September last year. For example, bacon prices increased by 23% and boneless hams, boneless necks and boneless loins by approximately 12%.
Egidijus Mackevičius, director of the Lithuanian Meat Processors Association, says that an exact reason for the increase in the prices of pork products cannot be given.
“Last year there was a big price increase, so you could say that the price increase is even,” said E. Mackevičius.
The head of the association also pointed out that the bacon sold in the markets is not standard, so the supply of its raw material is lower. It also determines the price of the product.
“There is very little fat in modern pigs. Us in production (processing – automatic paste) up to 3 centimeters of fat is needed, and a consumer who is used to buying old fat standards should have 5 centimeters of fat. This requires completely different pigs.
That is, if we talk about the bacon that the consumer wants, it is inevitable that it will become more expensive, because there are very few pigs that would be raised with bacon of this thickness. As a result, a certain segment can be larger, ”said E. Mackevičius.
The plague in Germany should adjust prices
The head of the association also said that in the future the prices of pork products should fall due to swine fever in Germany.
“The raw material started to get cheaper only after the swine fever in Germany. As this has happened recently, it is not yet reflected in the current cost of the product. Based on current trends, the correction should be slightly downward.
If Germany or the European Union did not find pork to export from Germany, pork products would have to become cheaper if they found that the price of the products would remain the same and it would be difficult to talk about their cheaper ”, said E. Mackevičius.
Prices in the markets are the most sensitive
Lithuania’s pork production is small, so if imports were suspended for some reason, prices would go up.
“We also have to import a lot of raw pork, because there are not enough pigs raised in the country. As a result, we are also highly dependent on the import price. Our producers respond to the average market price in Europe and increase prices in the country as it rises.
Market prices are the most sensitive indicator. If the import is prohibited, there will be a catastrophe in Lithuania, we will be able to sacrifice everything and it will still not be enough ”, said the manager.
There is no reason for the increase in vegetable prices
Compared with September of the previous year, the price of Lithuanian short-lived cucumbers increased by just over 40 percent. Lithuanian tomatoes became 31% more expensive and 28% more imported.
Paulius Andrejevas, chairman of the board of the Lithuanian Greenhouse Association, claims that the prices of cucumbers and tomatoes sold in the markets may have an artificial cause.
“It is not convenient to compare the prices in the markets, because many traders in the markets sell vegetables that are imported from other countries, but they are declared to be Lithuanian vegetables. Most of those vegetables are not Lithuanian and it is very painful, it is important for farmers and our association.
In general, there has not been an upward trend in tomato prices as the world market is crowded with tomatoes. Many surpluses were taken to Lithuania. These were lower market prices, and the prices in the markets may have been artificially caused, but I can’t say exactly, “Andrejev said.
The president notes that cucumber prices in Lithuania are more stable.
“Prices for short fruit cucumbers were not significantly higher either. However, as cucumber is not as transportable, it does not depend on other countries and the price is higher and more stable,” said P. Andrejavas.
According to him, the prices of vegetables should not go up in the future, because there is no reason for it.
Guilty of a new order
The director of the Lithuanian Markets and Markets Association states that the prices of certain products may have increased due to the new procedure introduced in the markets.
“The Ministry of Agriculture has drawn up new rules for the markets, with which we do not agree. Now it is necessary to keep track of the number of kilograms of products that it brings to the market. After the exchange, it is necessary to summarize how much is sold, cut into cartilage, how much is pulled and so on.
People come to the markets to trade for 3-5 hours. in the morning to locate the products, and now they still need to collect data a couple of hours before and after the exchange, ”said Vytenis Butkevičius, director of the association.
In his opinion, the additional workload and increased costs could also be reflected in the prices of the products.
“It just came to our attention then. It is quite natural that people, by incurring more costs and using more costs, would also adjust the prices of products,” said V. Butkevičius.
According to the director of the association, such a procedure has been introduced to ruin the small business.
“Lithuania has a monopolized retail market. There are some major retail chains in the market and, in my opinion, they have entered cartels that have led to criminal prices for various products.
We opposed the introduction of the new system, but it was powered and approved by a bulldozer. We say it is a lobbying effort by big money to ruin small businesses and markets. It is the influence of large retail chains, large processors, large producers.
In the long term, we believe this will discourage people from trading the market and they will choose to trade outside the market barrier, “said V. Butkevičius.
The prices of other products sold in the markets did not increase significantly and most even decreased.
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