Poultry market: the cost of chicken eggs dropped below the two-year level
Chicken eggs have fallen in price to 84 rubles. This is 0.4% less than in 2023. The increased profitability of production allowed to stabilize the cost of production. In addition, such price dynamics are influenced by both volume growth and seasonal factors, the Ministry of Agriculture explains. How the prices of chicken eggs have changed is in the Izvestia article.
Descent to a minimum
The cost of chicken eggs in Russia has dropped below the level of 2023. Now the price of ten is 84 rubles, which is 0.4% less than two years ago. This was told to Izvestia in Rusprodsoyuz.
The association noted that in order to keep prices at a stable level, manufacturers need confidence in the profitability of their activities. The main factor in the price spike recorded earlier was the discrepancy between the peaks of supply and demand for marketable eggs. During the high production season, poultry farms are forced to operate at a loss.
"The main sales channel is retail chains that have been conducting tender purchases for a long time to lower prices, which forced poultry farmers to sell eggs at bargain prices below cost," explained Dmitry Vostrikov, executive director of the Rusprodsoyuz Association.
According to him, the increase in profitability of production and the conclusion of long-term partnership agreements between retail chains and suppliers at prices that ensure profitability have contributed to the stabilization of the cost of products.
However, today the situation observed in the past is repeated for enterprises that do not have long-term contracts. At the same time, an oversupply is recorded in the market.
— In order to avoid new instability, long—term storage technologies and the development of industrial processing of eggs into products with a long shelf life are needed, as well as tools to maintain the profitability of producers, - said the representative of Rusprodsoyuz.
Regular dynamics
Such price dynamics are influenced by both the growth of production volumes and the seasonal factor, the press service of the Ministry of Agriculture told Izvestia. As of October 1, eggs of the first category from producers cost an average of 59.7 rubles per dozen, the second category — 44.4 rubles for a similar number of pieces. Over the year, they fell in price by 19.4% and 26.9%, respectively.
Meanwhile, according to the price monitoring service "Cenosaurus", for the year (from September 2024) in federal and regional retail chains, excluding promotional offers, prices for chicken eggs decreased by 12.7%. The average cost of a dozen eggs of the CO category, in particular, is 119.3 rubles (-8.5%). The price of 10 pieces of the C1 category decreased by 10.2%, to 106.3 rubles. The average price tag for a dozen eggs of category C2 is 70.7 rubles (-20.5%). At the same time, you can find much cheaper offers in stores, for example, a dozen eggs of category C1 for 50-60 rubles.
The decrease in egg prices, according to analysts at Cenosaurus, is due to the fact that after the price increase in 2023, producers began to increase their livestock.
— As a result, the number of eggs on the market has increased, while the demand for them, on the contrary, has decreased. And since eggs are a product with a limited shelf life, the surplus has to be sold at discounted prices," the service explained.
The increase in supply had the most noticeable effect on the price of chicken eggs, confirms Anton Polilov, an expert in marketing and sales, founder of OptimPro marketing agency. Due to the fact that products are perishable goods, the chicken egg market has become a buyer's market, where retail chains dictate terms to producers.
— It would be more interesting for all market players if the excess overproduction went to some other areas, rather than leading to the bankruptcy of enterprises. Everyone would benefit from this, including the Russian economy," the expert emphasizes.
It makes sense to recycle excess products into products of long-term storage and use, such as melange or powder, says strategic marketer Alexander Azar. This will allow retail to get the required volume without a surplus.
Among other reasons that led to a decrease in the cost of eggs, the expert highlights the delayed effect of market stabilization measures, which include increased import volumes, increased industry control and the promotion of long-term contracts with chains.
Another factor that has influenced the market is cheaper feed, says Miroslav Radkevich, co—chairman of the Association of e-Commerce Market Participants for the development of sellers on marketplaces. It is the cost of feed that accounts for about 70% of the cost of an egg. And the grain harvest this year turned out to be good.
Today's changes are positive for buyers. They indicate price stabilization following a period of sharp increase in value, which was recorded earlier, according to Alexander Anfinogenov, an independent expert of the FMCG market.
At the same time, it is important that the price remains balanced, taking into account the interests of consumers and producers of products: profitability of production is a key condition for the sustainable development of the industry, according to the Ministry of Agriculture.
A matter of survival
However, today there are no threats to the chicken egg market, Alexander Anfinogenov is convinced.
— The chicken egg market is stable today, key poultry enterprises are operating normally, there are no plans to reduce production, — the expert is sure.
The Rospticesoyuz notes that with an increase in production, producers began to develop egg processing facilities, as well as increase the volume of products for export.
According to Rosstat, in January–August, 26.6 billion eggs were produced in agricultural enterprises, which is 6.4% higher than in the same period last year. The number of birds, in turn, according to Anfinogenov, has increased by 1% since the end of 2024.
However, current prices are too low for small farms. In the event of an increase in the price of fuel, logistics or feed, producers may start working at zero or even minus, warns Miroslav Radkevich.
The current price is able to remove weak players from the market, confirms Alexander Azar. Some factories are already forced to work at the margins of profitability, selling products below cost.
"If the market is not balanced, local "compressions" of livestock and a reverse acceleration of the price wave in winter are possible," the expert warns.
A course for stability
One of the most effective solutions to maintain a stable price level in the market is to expand the practice of long-term contracts with a fixed price formula, the Ministry of Agriculture notes. This reduces the risks of price fluctuations for both manufacturers and retail chains.
"At the same time, compliance with the terms of such contracts should be regulated by law," the press service emphasizes, adding that the agency is already working on relevant proposals from industry representatives.
Long-term contracts will allow both buyers and sellers to fix their risks not for 1-2 months, but for several years, Anton Polilov believes. In this case, the price will decrease due to healthy competition, provided that there are enough manufacturers on the market. The final cost of products will be linked to the resources for production — the cost of feed, logistics and energy, adds Alexander Azar.
To ensure the profitability of poultry farming enterprises, a set of support measures is in place in Russia today, the Ministry of Agriculture reminds. These include concessional short—term and concessional investment loans.
"In addition, compensation is provided for part of the direct costs incurred for the construction of first— and second—order poultry reproducers for egg and meat production in the amount of 25% of the cost of the facility," the department said.
The main task of the authorities today is to prevent new stresses for suppliers: spikes in feed costs, supply disruptions or epidemics among poultry, Miroslav Radkevich draws attention.
"The state can play the role of a stabilizer — to insure producers' risks, monitor the feed market, and help farmers in times of crisis," he believes.
It is worth paying attention to infrastructure and logistics, the Izvestia interlocutor clarifies.
— If the delivery of raw materials and the finished product becomes more expensive, this is inevitably included in the price. We need to control this market and help solve business problems in order to reduce costs," the expert urges.
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