24 July 2019

Building a democratic society is inextricably related with the growth of social activity of the population of our country. Namely, the population participates in the discussion of draft laws, expresses its opinion on problematic issues in various spheres of the country’s life, draws the attention of the republic's leadership to current issues concerning each resident, etc.

One of these topical issues, which has always been the focus of attention of all segments of the population, is the rise in prices for essential goods. Rising prices for bread, sugar, butter, flour, meat and other products affect the interests of each person. And this interest is characteristic not only for residents of our country, but also for citizens of many countries around the world.

Recently, the general public of our republic has been actively discussing the situation with the rise in meat prices. In the media, articles are published, thematic broadcasts are aired, and discussions are conducted in social networks. In such discussions, each party has the right to express its opinion or vision of the issue, which may coincide or differ from the official point of view, be competent or “amateur”.

In order to help clarify this issue and contribute to the formation of an objective point of view, the State Statistics Committee of the Republic of Uzbekistan explains the following:

One of the fundamental principles of a market economy is free pricing without the direct intervention of the authorities. In market conditions, the price should be formed depending on supply and demand. The exception, perhaps, may be the products of enterprises-monopolists and certain vital products (for example, some medicines, etc.).

Price formation in market conditions involves the participation of two parties: the demand side (consumers) and the supply side (sellers). The point of intersection of supply and demand will be the equilibrium market price in this situation. This approach to determining the price is relevant not only for meat products, but also for other products. A simple example: the price of non-durable storage products (tomatoes, berries, etc.). During the day, prices for the same variety from the same seller may vary considerably. So, in the morning and in the afternoon, as a rule, the price is higher than at the end of the day (“evening market”).

Direct intervention by tightly regulating the price “indicated from above” (for example, by the local authorities), according to economists, will aggravate the situation and imbalances in the market. And, if for such goods as, for example, automobiles, high-price offer can significantly reduce demand before finding a lower equilibrium price, then in the case of socially-significant goods (including meat), the state’s task is to try to ensure supply in the market. at affordable prices.

In order to ensure food security, promptly informing the authorities and the general public about the price situation for the main socially important goods, the statistical bodies monitor prices in the consumer market.

According to the monitoring of consumer prices in organized trade and on the dekhkan markets[1] of the Republic of Uzbekistan as of July 16, 2019, the average price of a kilogram of beef was 40,501 sums, and mutton - 40,554 sums.

It should be noted that the average price in the republic is formed as a weighted average, taking into account the share of each region in the structure of household spending on the consumption of goods and services.

The price range per kilogram of beef in the regional context is from 34,705 sums (Republic of Karakalpakstan) to 46,586 sums (Tashkent city), a kilogram of mutton - from 31,196 sums (Republic of Karakalpakstan) to 44,036 sums (Tashkent region).

It should be noted that according to the current method, when determining the average prices, their whole range should be covered. However, it is necessary to take into account the structure of the population’s demand and the mass consumption of certain products depending on the price level. For example, as of July 16 of the current year, the average price of a kilogram of beef in selected for observation objects in Tashkent city was over 230 prices with a range from 32,000 sums to 79,990 sums. At the same time, of the registered prices, 68 were lower than 40 thousand sums per kilogram, over 100 prices - in the range from 40 to 50 thousand sums, about 60 prices - more than 50 thousand sums per kilogram and 6 prices - more than 70 thousand sums per kilogram.

It is necessary to take into account that the composition of the average price is influenced by many factors, among which are assortment shifts, the time of price registration, seasonality, the ratio of supply and demand at the time of registration, etc.

In order to assess the current situation with the supply of meat in the domestic market, you can also refer to the official statistical information.

Thus, according to preliminary statistics of foreign trade in June of the current year, imports of cattle declined by 5,169 heads over the month or 21.1% (from 24,549 heads in May to 19,380 heads in June of the current year). Imports of live sheep and goats decreased over this period from 78,158 heads (May) to 41,631 heads (June), i.e. slightly less than 2 times. Along with this, imports of fresh and chilled cattle meat increased from 355.3 tons (May) to 411.2 tons (June), i.e. by 55.9 tons or 15.7%. In general, in January-June 2019, 1,189 tons of fresh, frozen, chilled cattle meat were imported.

In January-June of the current year, according to preliminary data, domestic production of livestock and poultry for slaughter was in live weight - 1,128,144 tons (2.2% more than in January-June 2018), and in slaughter weight - 654,323 tons.

For comparison: in the first half of 2018, the production of livestock and poultry for slaughter in live weight amounted to 1,103,469 tons, in slaughter weight - 640,012 tons.

According to the data of the household budget survey for 2018, the average annual consumption of meat and meat products in the republic amounted to 1,423,704 tons, while on average per capita the figure was 43.2 kg per year. With this indicator, the consumption in meat for the half year is about 711,852 tons (= 1,423,704/2). Given the population growth in the first six months of 2019, this figure will be slightly higher.

Meat consumption in various countries *

(for 2017, per capita)

Country

Meat consumption, kg

Russia

73

Australia

121

Austria

98

Germany

88

Italy

87

Netherlands

73

Poland

70

France

89

USA

118

Japan

49


*) according to the Economic Development Research Journal http://edrj.ru/article/03-06-2018

In addition, it is necessary to take into account the need for meat of domestic processing enterprises, which has a significant impact on the structure of demand. According to preliminary data, the total volume of processed and canned meat produced in the republic in 2018 amounted to 193,047.tons of finished products, meat and poultry products (sausages, smoked meats, etc.) - 31,513.4 tons of finished products.

It is important to note that the situation with the increase in meat prices is not “exceptional”. According to the registration of consumer prices for the calculation of the consumer price index, in January-June last year, beef (except for boneless meat) added 17.6% in price for the first half of the year (including 6.0% in June), boneless beef - 10.4% (in June - 3.6%), lamb - 16.6% (in June - 6.4%). Along with this, for the period under review, poultry meat (except for the legs) fell in price by 10.1% (including in June - by 2.5%), chicken legs - by 5.0% (in June - by 1,0%), eggs - by 19.1% (in June - by 2.6%).

 

Information Service  of the State Committee on Statistics

 

 
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