What’s happening with egg prices?

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Egg prices have surged this year, placing eggs among the five fastest-growing consumer items, with only bananas and tomatoes showing higher increases. Prices for eggs—and for chicken meat—reached record highs in July and have climbed steadily since. By November, egg prices across the country had risen by more than 15 percent, and by early December many regions, including Moscow, were selling eggs at higher prices by the piece.

In the capital, eggs can be purchased from the Verny market chain in the city’s southwest. The lowest category C3 eggs are priced at 8.99 rubles each. In Crimea, a “selected egg” goes for 20 rubles, while in Orenburg an egg sells for 11.5 rubles.

Verny Network described the partial sale of eggs as a temporary measure taken to address market shortages and unfair price hikes. The company noted that in November and December demand for eggs increased by 5-8 percent in central Russia, and by as much as 25 percent in Tatarstan and the Sverdlovsk region.

A fresh report from Novye Izvestia highlighted price observations. The Pyaterochka retail chain reported selling ten C1 eggs of the budget brand “Red Price” for 115 rubles on December 8, Magnit offered the same product for 109 rubles and up to 139 rubles in some locations.

On December 8, the Russian Prosecutor General directed checks of chicken egg producers and retailers, following a notice from the Chief Public Prosecutor’s Office. The watchdog noted that the average retail price of eggs had risen by more than 40 percent over the year. The office underscored that comprehensive intervention measures would be taken against violations to protect consumers from unfair price increases.

Investigations will be conducted jointly with antitrust authorities. Prosecutor General Krasnov issued instructions at a meeting of the expert group on combating cartels. Attendees included representatives from the Ministry of Industry and Trade, the Ministry of Agriculture, the Federal Antimonopoly Service, the Russian Poultry Association, and the Association of Retail Companies.

The Federal Antimonopoly Service announced that several retail chains agreed to cap egg prices. Chains cited included Sadık, ABC of Taste, and Globe.

Why are eggs getting more expensive?

The General Director of the Russian Poultry Association, Galina Bobyleva, stated that there is no overall shortage of eggs in the country and that price differences are driven by retail chains rather than supply. Higher costs for logistics, feed, and inflation also contribute to price increases. Bobyleva emphasized that producers should not bear sole responsibility for shelf prices and called on the Ministry of Agriculture and the Ministry of Trade to address the issue.

She noted a typical 30 percent trade margin for a dozen eggs and explained that producers cannot set shelf prices. Prices have risen due to logistics, fuel, equipment, feed, and inflation.

The director of Tchaikovsky Poultry Farm CJSC, Petr Belkov, pointed to a decline in Russia’s laying stock, with about 16 million fewer birds. He added that bird flu and related restrictions by Rosselkhoznadzor and Rospotrebnadzor contributed to higher costs. Belkov argued that producers are often blamed by officials and the public when prices rise, even as markets tighten.

Belkov observed that the public tends to blame farmers, while supervisory authorities only recognize the pressures on eggs and chicken meat when supply tightens.

Earlier in the year, at least six poultry farms faced the avian flu epidemic, causing mass die-offs. For example, Bashkortostan saw a 43.6 percent drop in poultry during October compared with the previous year. Rosstat reported a 3.2 percent decline in total poultry numbers in Russia as of November 1.

The Ministry of Agriculture acknowledged that prices rose rapidly due to higher demand for eggs in 2023. The Ministry of Industry and Trade argued that retail chains are not responsible for the price increases. Industry officials said some sellers even sold at a loss to avoid price spikes, attributing the increases mainly to strong consumer demand.

Public remarks suggested that there were no fewer eggs in stores, and consumption rose overall for staple foods. Still, by November the head of the Poultry Breeders Association noted that eggs and chicken had become one of the few affordable animal proteins for many Russians. This has, however, created a cycle: as other prices climb, demand for eggs and chickens rises, which in turn sustains higher prices.

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