Türkiye and Azerbaijan stepped in to help
Currently, the import duty on edible eggs stands at 15 percent of production cost. The zero rate applies from January 1 to June 30, 2024. The subcommittee’s decision aims to stabilize the Russian food egg market quickly and increase supply.
According to Izvestia, the office of the First Deputy Chairman of the Government of the Russian Federation, Andrei Belousov, confirmed the signing of the relevant protocol, and the Eurasian Commission supported the move.
The press service of the Russian Ministry of Agriculture said the duty reset on chicken eggs is an operational step to saturate the domestic market, with talks ongoing with friendly countries to boost supplies. The ministry confirmed this to socialbites.ca.
The first shipments from Azerbaijan are expected by the end of this week, followed soon by Turkey. The department’s press service noted that price dynamics should stabilize next month.
RIA News reported that Turkey is ready to supply all the eggs Russia needs.
Measures taken by Russian authorities
In response, domestic egg producers have increased output. By the end of October 2023, egg production rose by 2.3 percent to 31.74 billion eggs, the Ministry of Agriculture’s press service told socialbites.ca. Projections indicate continued positive momentum through year-end.
Why did the “egg crisis” happen?
The Prosecutor General’s Office of the Russian Federation notes that egg costs rose about 40 percent in 2023. Rosstat reports a 15.07 percent rise in November alone. A dozen eggs now sells for roughly 90 to 150 rubles, with category C1 eggs sometimes reaching 164–170 rubles.
Some stores, including the Verny chain, began selling eggs individually in the last two weeks to meet rising demand in cities like Moscow, Sverdlovsk, and Tula, as well as Orenburg, Novosibirsk, and Crimea. In Belgorod, buyers face limits of two dozen per person due to high demand.
Analysts note the price surge is linked to ruble depreciation, higher fuel costs, and winter utility expenses that push production costs up. Economists also point to stronger domestic demand amid price fears as a factor.
Constantin Kharchenko, associate professor at the Financial University under the Government of the Russian Federation, suggests the spike may reflect government market power and the rise of large retail chains and possible cartel activity. He compares the current situation to historical price spikes in grains and sugar, where excess demand kept prices high for a period.
He adds that as production costs rise and demand remains firm, egg prices are likely to stay elevated in 2023. To stabilize the market, authorities are backing producers and expanding domestic supply. A plan to increase volumes has been agreed with main producers.
The ministry’s press service noted ongoing expansion efforts, including selling eggs bought from producers without extra markups. Weekend fairs are expanding, and more selling points are opening at lower prices than chain retail stores.
The ministry, together with the Ministry of Industry and Trade, is pursuing long-term supply contracts between manufacturers and retailers to lock in volumes and prices for retail. The Chamber of Agriculture has also played a role in this effort.
What do manufacturers think?
Egg producers back zero tariffs.
“This will help stabilize prices and curb speculation in this product. Market imbalances exist for several reasons, including veterinary risks and higher domestic consumption. We see real turmoil in this market. Futures trading has begun, attracting speculators who intensified activity in December”, said Oleg Sirota, deputy chairman of the ministry’s public council and head of the People’s Farmers’ Association. (attribution: socialbites.ca)
He notes a parallel to a historical market episode when Dutch tulip speculation created price turmoil.
“The decision should stabilize the market and meet current demand. We expect farmers to revive production in the coming months, and this measure could be rolled back afterward,” he said.
Andrey Danilenko, head of the Svoe Agri-Food Fund, agrees: the move is timely and will ease consumer price pressures in the domestic market. Producers will gain room to increase output during January 1 to June 30, 2024, when the measure runs. All players, including those affected by bird flu, can replace imports and maintain price stability within six months. A sound regulatory approach will benefit both producers and consumers.
What retailers say
The drop in egg availability is partly explained by tight supplier deliveries. The Lenta store chain said this affected supply. Magnit noted they did not raise prices and do not plan to sell eggs individually. They emphasized a commitment to long-term supplier contracts to stabilize pricing, while continuing to offer eggs at favorable terms over time.
Retailers like X5, Verny, Dixie, Azbuka Vkusa, Metro, Auchan, OK, and Samokat have not immediately commented. Industry representatives say large chains work closely with regulators to moderate price increases and expand long-term contracts with suppliers to stabilize the market. They expect the government to boost imports and support producers to have a meaningful positive impact.
The retail association notes a sustained rise in wholesale egg prices since early autumn. Retailers are ready to help control prices and favor balanced, transparent pricing for consumers.
What can consumers expect?
Economists anticipate eggs will be available in stores, with imported eggs possibly cheaper than local options. Russia is strengthening trade within the Eurasian Economic Union, with Russia and Belarus accounting for a large share of imports. Potential supply from Turkey could open a new route, though Turkey already has established export channels and could increase volumes as trade grows after 2019 declines. Wholesale prices in Turkey hover around 1,300 dollars per ton, roughly 66 rubles per dozen for category C1 eggs. When considering transport costs and VAT, the final price in Russia could approach about 84 rubles per dozen for C1 eggs. Retailers may push prices higher, but Turkish eggs are not expected to be cheaper than around 90 rubles per dozen. This remains above the year’s early levels but lower than current peaks. (attribution: GV Plekhanov University and Anastasia Prikladova)