Reducing Cost of Beef Can Be Reflected in Catering Sector

The retail price of beef in Azerbaijan for the last month decreased by about 15%. According to experts, the situation will change closer to May.

Today in the markets of Baku a kg of beef is sold at 7 – 7.5 manat and in the regions it is even cheaper – 5 to 6 manat, while for many years the price remained at the level 9 manat. The main reason for the decline in beef prices is the rise in price of feed because of the drought. For example, a bale of hay in the autumn of last year was sold at a price higher than 5 manat, and the feed costs per cow were 200 manat, which is about four times higher than a year earlier. Therefore, farmers are forced to send part of their cattle for slaughter.

According to the economist Gubad Ibadoglu, the price decline is the result of the prevalence of supply over demand. The proposal also increases due to import of cattle from Russia and Georgia. Only in 2014 the import of meat into Azerbaijan increased by 28.2%. Importers spent about $ 20 million on meat imports. Ibadoglu believes that among the objective reasons for the decline in beef prices there are factors such as limitations on the catering at funerals, and the loss of purchasing power by the population.

If the price of beef lasts at this level for another month, some reduction should be expected in the price of meat products and the services of catering facilities.

According to the State Statistics Committee, in 2014 the production of meat in live weight in Azerbaijan amounted to 505.5 thousand tons, which was 1.6% more than in the previous year. The share of beef accounts for about 125 000 tons net weight. -0 -