Russian retailers expect panic food buying to fade by year-end

The feverish demand for some foods, which boosted Russian consumer prices in August and September, will die away by the end of the year, leading retailers said on Thursday.

The feverish demand for some foods, which boosted Russian consumer prices in August and September, will die away by the end of the year, leading retailers said on Thursday.

"The price increase process is normal from an economic standpoint, since we did have a really hot summer. I am just concerned with the hype surrounding the issue," DIXY Group President Ilya Yakubson said, adding that the hype only fuelled the market.

Yakubson said there was a shortage of quality domestic agricultural products, including buckwheat, dairy products and potatoes. He added that he expected temporary shortages of certain foods to influence a future price hike. "A couple of months will go by, food shipments will stabilize, and prices will start going down," Yakubson said.

Auchan Russia retail group Board Member Ludovic Holinier agreed, saying he was optimistic that the market would stabilize by the end of the year.

Due to the summer drought, the projected grain harvest is being estimated at 60-67 million tons, down from 97.1 million tons in 2009. In August, Russia placed a ban on export of wheat, barley, rye, corn and flour.

Russia will have to import Egyptian potatoes as the quality of local produce was very low, but the imports would only become available at the end of 2010, Yakubson said.

MOSCOW, September 9 (RIA Novosti)