Retailers invited suppliers to limit price increases

MOSCOW, November 3. Russian retailers offered food producers to discuss ways of restricting the growth of prices in the face of shrinking demand and declining real incomes. This was announced by the Chairman of the Presidium of the Association of retail companies (akort) Ilya Lomakin-Rumyantsev.

Only for the first half of 2015, the demand for products in the Russian retail fell 8% compared with the previous year, he said. On transition to a model of savings behaviour due to the income reduction said in its latest monitoring (January-September) and the Ministry of economic development.

“In these circumstances, the HSE has written to the Intersectoral expert Council on the development of the consumer market (MEAs, brings together retailers and suppliers) a letter with a proposal to devise joint measures to limit the growth of prices for food products throughout the production chain,” said Lomakin-Rumyantsev.

For example, transport costs account for about 7% of the final value of the goods at retail, and you can think about optimizing routes to reduce increased transportation costs, he says. Assessment Lomakina-Rumyantseva, only due to the introduction from November 15 paid travel for trucks over 12 tonnes retail prices could rise by 2%.

Transportation costs directly shape the final cost of the product, but to influence this factor directly manufacturer, said in an interview with the Director of development Association of manufacturers and suppliers of food products “Rusprodsoyuz” Dmitry Vostrikov. These factors, he said, also includes the growth of tariffs for electricity, water, the introduction of payments for the disposal of waste and the increase of the cost due to the devaluation of the ruble.

“The number of manufacturers has begun to reduce costs at all stages of the production process that depend on them. For example, the use of cheap packaging, a reduction in the actual mass of the goods”, – said Vostrikov. However, Rusprodsoyuz ready to discuss with retailers the situation with rising prices and to find the “optimal solution” Vostrikov said.

To discuss the possibilities to limit price increases agreed in the National Union of milk producers (Soyuzmoloko). “In our view, rising prices on the shelves, at least for dairy products, have reached the limit of consumer demand”, – the press service quoted the Report of the Chairman of the Board of Soyuzmoloko Andrey Danilenko.

In Russia consumer prices in September of 2015 increased compared with the previous month by 0.6%, follows from the operative data of Rosstat. For the period from the beginning of the year consumer prices in Russia grew by 10.4 per cent.