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The Federal Antimonopoly Service (FAS) analyzed bread prices in major retail chains and found high average markups, which in some cases exceed 100%. During the All-Russian Conference on Procurement, FAS head Maxim Shaskolsky reported on this study.
The FAS press service specified that trading markups on bread at the "Dixy," "Pyaterochka," "Perekrestok," and "Magnit" chains were analyzed.
Shaskolsky noted that there are markups of 5% and 10%, but this is mainly for products sold under their own brand and their volumes are not as significant. On average, the most affordable types of bread have a markup of 60%, which is quite significant. Therefore, work in this direction continues to improve the situation.
The Chairman of the Presidium of the Association of Retail Companies (AKORT) Igor Karavaev stated that AKORT does not have information on the measurement methodology referenced by the FAS and cannot confirm the correctness of the research results. He also noted that it is unknown which goods were included in the monitoring and whether the ratio of their sales volumes was taken into account in the calculations.
Karavaev added that retail chains, which are members of AKORT, fulfill their social obligations by maintaining minimal markups on socially significant products, including bread. The average markup on the most popular types of "first-price" wheat bread this year ranges from 4-10%, and for rye bread, it is 12-13%. Higher markups are applied to more expensive products, such as gluten-free or yeast-free bread with various additives. Retail chains use these markups to offset the low markups on basic categories of "first-price" bread, which do not cover the costs of their production and sale.
According to AKORT data, the minimum price for 1 kg of wheat bread in retail chains at the beginning of October was 57.7 rubles, which is 40% lower than the average price in the country recorded by Rosstat (101.4 rubles). The cost of "first-price" rye bread in retail networks was 52.8 rubles per 1 kg, which is 47% lower than the prices recorded by Rosstat in various retail formats. Moreover, the markups of retail chains are not the cause of bread price increases: the rise in retail prices is due to increases in prices by manufacturers. Over the past 12 months, purchase prices for wheat bread have increased by 25%, and for rye bread - by 27%, which could not but affect retail prices.
The President of the Russian Union of Bakers Dmitry Semenov confirmed that the increase in bread prices is not only due to markups. The reason is also related to rising costs at all stages of production, from raw materials and packaging to logistics and utility payments. In addition, manufacturers have to increase wages for employees, as there is a labor shortage in the industry, which is about 40% and continues to grow. Semenov added that it is not profitable for manufacturers to raise bread prices, as this leads to loss of image and requires a lot of time for agreement in contracts with retail chains.
