AZE.US
Higher beef and lamb prices are pushing some Azerbaijani shoppers toward chicken, but the additional demand could also make the lower-cost alternative more expensive, economist Gunay Huseynova said.
Huseynova said chicken fillet that previously sold for 6 to 7 manats per kilogram now costs 8 to 10 manats in stores. She estimated the observed increase in poultry prices at roughly 1 to 2 manats per kilogram.
The fillet prices apply to a specific product category and should not be treated as the price of all chicken products.
Substitution can increase pressure on prices
Families looking for an alternative to costly red meat are shifting some demand to chicken, particularly fillet. That substitution does not guarantee that household food spending will remain unchanged.
For a family buying five kilograms a month, an increase of 1 to 2 manats per kilogram adds 5 to 10 manats to monthly expenses.
Huseynova said consumers also respond by reducing how much they buy. A household that previously purchased five kilograms of meat a month might cut that amount to three kilograms. She presented that as an illustrative budget response, not as consumption statistics.
Lower purchasing volumes can limit retailers’ ability to continue raising prices. Stronger demand for chicken therefore does not necessarily lead to a sudden price surge.
Prices may keep rising if red meat stays expensive
Huseynova said chicken prices could continue rising if beef and lamb remain expensive, but she gave no specific timetable or new price level.
She also suggested that more suburban households may begin raising poultry and producing eggs for their own consumption in the coming years in order to reduce their dependence on retail prices.
Source: Vesti Baku.