Producers of chicken eggs asked the Ministry of Industry and Trade to solve the problem with a “critical decline” in the purchase prices for their products. They argue that purchase prices have fallen below production costs amid a seasonal decline in demand after Easter and rising costs, Vedomosti reported.
According to the results of tenders, retailers buy eggs for 36–45 rubles. for a dozen, excluding VAT, while their prime cost is on average 49–52 rubles, said Galina Bobyleva, general director of Rospitsesoyuz. She noted that over the year, the cost of poultry farming increased by 20-25% due to the rise in prices for grain, feed additives, hatching eggs, packaging. Also, retailers overestimated the demand for eggs before Easter and now they have a surplus.
According to Ms. Bobyleva, egg producers will not be able to work for a long time at a loss and will begin to reduce the number of livestock, and this may lead to a shortage of products. He believes that the way out of this situation could be a departure from mainly tender supplies towards direct long-term contracts.
The general director of the National Union of Poultry Breeders Sergey Lakhtyukhov said that now, together with the Ministry of Agriculture and the Ministry of Industry and Trade, the issue of improving communication with networks is being discussed in order to prevent price hikes, but there is no talk of administrative regulation. According to the Ministry of Agriculture, by May 26, eggs of the first category in bulk fell by 19.5%, and those of the second category – by 10.9%. The Ministry of Agriculture assesses the situation with eggs as stable and comfortable for a further increase in production volumes.
For more information about supporting poultry farmers, see the article by Kommersant “Broilers are not informed about limits”.