Russian poultry and egg producers agree to contain prices

MOSCOW, March 2 – RIA Novosti. Key Russian producers of poultry and eggs, members of the National Union of Poultry Breeders, have agreed to curb price increases for their products. This is stated in the message of the Ministry of Agriculture following the meeting of the head of the department Dmitry Patrushev with market participants.

The department explained the dynamics of prices by three factors – an increase in the price of feed, a decrease in production volumes due to the spread of bird flu, and a decrease in imports of hatching eggs.

The latter factor is associated with the growth of infectious diseases among animals in the EU countries. To reduce dependence on imported eggs, the Ministry of Agriculture plans to stimulate domestic production. In particular, at the meeting, the participants discussed a phased increase in the import customs duty rate for these products: from January 1, 2022, it was proposed to raise it from zero to five percent, and a year later – to 15 percent.

The government is also considering reimbursing the capital expenditures for the construction and development of hatching egg production facilities from 2022. “Another measure of support can be compensation for part of the cost per kilogram of manufactured and sold products. This decision may be valid until October 1 of this year for poultry enterprises that do not increase selling prices,” the department added.

The Ministry of Agriculture recalled in a release that the government has already taken measures to stabilize prices, including for feed – these are quotas and duties on grain export, duties on the export of oilseeds. In addition, this year, entrepreneurs have access to subsidies for the transportation of soybeans and meal from Siberia and the Far East.

According to Patrushev, all this has already allowed to slow down the internal growth of the main crops and feed. The agency expects stabilization within two months.

Price dynamics

According to Rosstat, in 2020, chicken eggs rose in price by 15.2 percent, chilled and frozen chickens – by 2.6. Egg prices in Russia rose from early September to early January for 17 weeks. In the first month of this year, the cost decreased, but in February it began to rise again. For example, for the period from February 16 to February 24 – by 1.1 percent.

Chicken meat has risen in price for 20 weeks, from the end of September, and from February 16 to 24, chicken became the leader in price growth – plus 1.9 percent.

Government measures

At the end of December, the government announced a set of measures due to the rise in food prices in Russia. Manufacturers and retailers have entered into agreements to stabilize prices for sugar and sunflower oil. If business does not reduce prices, the authorities may introduce an export duty on oil (at the same time, its rate for sunflower has been increased since January 9) and cancel the import tariff on cane sugar.

From February 15 to June 30, 2021, there is also a quota for the export of wheat, barley, rye and corn, and from February 15 – a similar duty for wheat. State support measures are envisaged for sugar producers, bakers and millers. Finally, the bar for price fluctuations for socially significant goods, above which the state has the right to directly regulate their prices, was lowered from 30 to 10 percent.

Author: wedocount

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