Soft-boiled prices: eggs began to fall in price in Russia

Since the beginning of this week, producers have recorded a decline in selling prices for eggs. Izvestia was told about this at the National Union of Poultry Breeders. They explained: retail chains have formed the necessary stocks of products on the eve of Easter, so the demand on their part has decreased. And after that the price also fell. The Rosptitsesoyuz noted that the selling price of the product has already decreased by 5-10%. The Ministry of Industry and Trade confirmed: according to operational data, producer prices for eggs are falling.

Let’s go down

That egg manufacturer prices dropped earlier this weekGeneral Director of the National Union of Poultry Breeders Sergei Lakhtyukhov told Izvestia. He added that they have largely approached the cost of production at the beginning of the year… The expert did not specify what percentage reduction is in question. According to Sergei Lakhtyukhov, retail chains have already made stocks of products on the eve of Easter celebrations, therefore they have reduced the volume of purchases from manufacturers. The decline in demand for eggs has led to a decrease in the selling price.

The expert recalled that during the year the cost of eggs changes due to seasonal factors. One of them is the Orthodox Easter holiday, when the demand for products from consumers increases. Although in the second half of May the situation changes, and market participants record a decrease in demand and prices for these products. In the summer, the cost of eggs drops to annual lows.

Producers’ selling prices began to decline 10 days ago, they have already decreased by 5-10% for table eggs of the 1st and 2nd categories, Galina Bobyleva, Director General of the Russian Poultry Union, confirmed to Izvestia. Retailers purchased the required volume of products and their demand dropped, she said. This affected the cost of eggs from producers, although the consumer may not see this in retail stores, the expert noted. It is not yet clear how retail chains will adjust their price tags., explained Galina Bobyleva.

The X5 retail group (Pyaterochka, Perekrestok, Karusel chains), Magnit, Ashan and Okay did not respond to Izvestia’s request. The “Lenta” clarified that they had not received notifications from producers and suppliers about the reduction in egg prices.

The expert recalled that the volume of egg production in Russia has not changed over the past four years, and the demand for the product fluctuates. She gave such an example: at the beginning of the pandemic, that is, in March-April last year, people began to buy eggs more actively, as incomes of the population decreased, and citizens began to choose a cheaper protein product more often.

On the eve of Easter

Over the past few weeks, the growth in producer prices for chicken eggs has slowed down, the press service of the Ministry of Agriculture told Izvestia. Office expects that the cost of these products will begin to decline in the near future… According to the ministry, this will be facilitated by a decrease in the cost of feed for livestock due to the effect of export duties on grain and oilseeds, the end of the season of high demand for eggs on the eve of Easter, and new measures of state support for the industry will also show the effect. So, for the poultry industry enterprises the Ministry of Agriculture has increased the size of the soft loan from 1 to 1.5 billion rubles. Plants affected by bird flu can roll over investment loans for up to 12 years. Plus, the ministry has provided a new type of soft loan for livestock breeders – for the purchase of grain, meal, cake and amino acids.

Deputy Head of the Ministry of Industry and Trade Viktor Yevtukhov told Izvestia that the department is closely monitoring the situation with prices for socially important goods. Operational data indicate that selling prices for chicken eggs are really going down, he noted. But it will be possible to assess whether the product has fallen in price in retail after Rosstat publishes its indicators, the official said. According to the forecast of the Ministry of Industry and Trade, in May, after the traditional seasonal growth, prices for eggs will go down.

According to the latest data from Rosstat, in January, the national average retail price for a dozen eggs amounted to 75.38 rubles, in February – 77.13 rubles (an increase of 2% against the beginning of the year), in March – 81.33 rubles (almost 8%).

Since the beginning of this year, prices for poultry products have been growing. As Izvestia wrote, in mid-February, manufacturers offered retail chains to revise purchase prices – to increase them by 10%. At that time, the largest retailers were ready to change the commercial terms of supply, since the business case presented by the factories was exhaustive. In early March, First Deputy Prime Minister Andrei Belousov instructed the FAS to check the producers of chicken and eggs in order to understand how the price increase is justified and whether there is an abuse of the dominant position in the market. The press service of the FAS “Izvestia” clarified that the checks have not yet been completed.

Since the beginning of 2021, the Ministry of Agriculture has already warned producers twice: if the cost of chicken and eggs does not stabilize, the government can intervene in pricing and begin to regulate the cost of these goods. For example, on April 13, the ministry hosted a meeting of the operational headquarters to monitor the situation with socially significant products. The deputy head of the department, Oksana Lut, told the producers that over the past 60 days, poultry and eggs in Russia have risen in price by more than 10%. It was about the retail prices of products.