Dynamics of average wholesale and retail Russian pollock prices in January-May 2009

Russian Pollock Association has released analysis of dynamics of average wholesale and retail prices for headed pollock in January-May 2009. In the year 2008 the price dynamics for headed pollock was comparably stable and fluctuated according to the seasonal factors, reports www.fishnet-russia.com (www.fishnet.ru) with reference to the Association.

In the fourth quarter of 2008 the wholesale price both in Vladivostok and in Moscow rose by 19% to RUR40.00 per kilo in Vladivostok (up from RUR33.50 per kilo in the third quarter of 2008) and to RUR50.00 per kilo in Moscow (up from RUR42.00 per kilo in the third quarter of 2008).

The growth rates for retail prices in the fourth quarter of the year were much lower which resulted from a comparable stability in the third quarter of 2008. More specifically, the average retail price for Vladivostok amounted to RUR59.00 per kilo displaying a rise of 2.6% on the average price in the third quarter of 2008. In Moscow the retail pollock prices grew by 8% from RUR69.50 to RUR75.00 per kilo.

In the first quarter of 2009 retail traders successfully resisted increased purchase prices in late 2008. The average prices in Vladivostok and Moscow grew by 6% and 15% correspondingly and amounted to RUR62.50 and RUR86.50 per kilo. The wholesale price in the first quarter of the year increased more actively, namely by 24% for Vladivostok (RUR50.00 per kilo) and 26.5% for Moscow (RUR63.00 per kilo).

In the second quarter of the year 2009 the wholesale prices got somewhat smaller. In particular, the average prices settled at RUR48.00 per kilo in Vladivostok (RUR47.00 per kilo ex-vessel in June 2009) and RUR59.00 per kilo in Moscow, thus displaying decreases of 4% and 6% correspondingly. In the second quarter of the year the retail prices were expected to keep growing due to the positive dynamics in the wholesale sector in January-March 2009. The retail prices were forecasted at RUR72.00 per kilo in Vladivostok (15% up on the first quarter of 2009) and RUR92.00 per kilo in Moscow (6% up).

At the same time, it is worth noticing that the wholesale prices were growing faster than the retail prices. In May 2008 the average wholesale price for headed pollock in Vladivostok amounted to RUR32.00 per kilo, while in May 2009 it settled at RUR49.00 per kilo (+53%). The retail prices per kilo in Vladivostok grew by 28% from RUR57.00 per kilo in May 2008 to RUR73.00 per kilo in May 2009. The difference between the wholesale and retail price somewhat decreased from RUR25.00 per kilo in May 2008 to RUR24.00 per kilo in May 2009.

In Moscow the wholesale price grew by 40% from RUR42.00 per kilo in May 2008 to RUR59.00 per kilo in May 2009. The rise of the wholesale prices in Moscow turned out to be smaller than that in Vladivostok taking into account that transport expenses remained stable and even decreased in some cases (for instance, the railway tariffs of the nation's carrier Refservice were reduced by 8% in the first quarter of 2009). The retail traders added up 35% margins and the consumer price therefore made RUR93.00 per kilo (RUR69.00 in May 2008). Evidently, the retailers have not managed to fully regain increased purchase prices in the first quarter of 2009.

In the meantime, taking into account the above described price dynamics the retailers succeeded in bringing the net margins to RUR25.00 per kilo. For instance, as per May 2008, the gap between the wholesale and retail price in Moscow amounted to RUR27.00 per kilo on the average, while in May 2009 the difference already amounted to RUR34.00 per kilo thus making 36% of the average retail price in Moscow.