OREANDA-NEWS  Russian egg producers are discussing with industry unions and regulators the introduction of a price range for category C1 eggs. Kommersant writes about this with reference to a presentation prepared by them and data from sources on the agricultural market.

Poultry farmers want minimum and maximum prices to be set for both purchases and retail. A similar procedure, with the exception of the maximum cost, applies in the alcohol market.

The introduction of a price range for basic foodstuffs has been discussed since last summer. Such a measure did not receive full support, so manufacturers began their own negotiations with the authorities.

Most of all, this opportunity attracts industries whose product value varies greatly. In particular, potato growers have applied to the Federal Antimonopoly Service (FAS) with an initiative to stabilize prices.

Currently, egg producers claim that retail chains set starting prices at auctions at a level below cost, and also order an undervalued volume in order to force enterprises to agree to unfavorable conditions.

Albert Davleev, President of Agrifood Strategies, explained that after the May holidays, the purchase price of eggs is halved due to increased production and lower demand, although producer costs do not change. Against this background, the profitability of most market participants has fallen to zero or even gone into negative territory.

The main problem remains the growth of production, which outstrips the dynamics of consumption and does not allow prices to rise. In March, according to Rosstat, the average retail price of a dozen eggs was 113.8 rubles, which is three percent higher than last year's level and almost twice less than inflation. However, the cost of production is growing much faster.

Meanwhile, the publication's interlocutors from retail chains are opposed to the proposals of poultry farmers, as they contradict market mechanisms.