The current situation in Russia mirrors trends seen in the automotive sector and poultry markets, driven by rising demand and sharp price increases. This assessment comes from Maxim Kadakov, editor-in-chief of the magazine Behind the Wheel, who shared insights on his Telegram channel.
Kadakov points out that December saw a notable surge in egg prices, with demand spikes pushing costs up by 10 to 20 percent across 46 regions. In response, authorities decided to eliminate customs duties on egg imports from friendly countries to saturate the market and ease prices. The auto expert notes that while this move may not benefit domestic poultry farms, price relief could materialize in 2024 if the market becomes sufficiently saturated.
He adds that even if prices ease, the decline may be modest. Chicken meat prices are rising for several objective reasons: the ruble’s depreciation boosts the cost of imported inputs used in egg production as well as car manufacturing, avian influenza outbreaks disrupt production, and labor costs are rising, partly due to the presence of guest workers and other factors.
In the car market, demand has consistently outpaced supply throughout the year, driving sharp price increases and contributing to a shortage of new vehicles that has reached about 1.7 million units over two years. Kadakov suggests a parallel solution to the egg market could apply here as well: temporarily lowering or suspending taxes on new and used cars. Yet authorities did not reduce taxes and instead raised the recycling fee, implying that any price declines would hinge on a drop in demand rather than structural changes in duties or component costs.
According to Kadakov, a potential path to relief would involve a rise in Russia’s vehicle production volume, which could help dealers clear inventory. Overstocking is already underway in some segments. However, unless there are concrete reductions in duties, taxes, and imported production components, price lists for cars are likely to reflect discounts, bonus offers, and other consumer-friendly concessions rather than broad, eye-catching price cuts.
In this broader context, the auto expert underscores the parallel between automotive and poultry markets: price movements depend on a mix of policy actions, exchange rate dynamics, supply chain pressures, and market demand. The evolving situation suggests that both sectors could experience volatility, with relief possible mainly through market saturation, strategic incentives, and targeted policies rather than sweeping price resets.
Earlier, Russia also received a second batch of eggs from Azerbaijan, highlighting how international cooperation and import strategies intersect with domestic price dynamics in both the poultry and automotive arenas.