This season, Russian authorities kept egg prices from jumping, aiming to avoid a repeat of last year’s surge and the hype that followed. Even if prices rise again soon, the pace is expected to be gradual. This stance was stated by Leonid Kholod, former Deputy Minister of Agriculture, Doctor of Economic Sciences, and a professor.
The expert notes that manufacturers are now raising concerns about higher costs, yet they still have a margin of safety so a sharp price increase is unlikely. The market watchers expect tighter control to prevent abrupt movements in cost for consumers.
On the demand side, there could be public scrutiny if prices move upward again. Three large factories signaled a desire to raise prices, and such signals can spread quickly. While competition exists, eggs remain a fundamental grocery item, and the industry keeps a close watch on pricing signals.
In October, the real cost of the product rose 8.1 percent compared with October 2023. Last year’s rapid increase was driven by fears that eggs would be scarce for the New Year table. Kholod assures that such a shortage is not anticipated this year.
If early movers manage to lift prices, others may follow in a gradual fashion. Today, a dozen eggs costs about 105 rubles on average, reflecting a balance between producer costs and consumer demand.
Earlier, Varaksino and another large poultry operation pushed up egg purchase prices by around 8 percent. Praxis-ovo, which sources eggs from Varaksino, warned retailers that price increases could reach as much as 12 percent beginning November 5 due to the geopolitical backdrop. Source: Socialbites, 2024.
Officials at the Ministry of Agriculture have previously examined egg price dynamics in Russia. Source: Socialbites, 2024.