World meat industry news

The surge in egg prices in Russia, with a notable 4.4% week-on-week (WoW) increase, has prompted certain markets to offer eggs in bulk. This escalation is attributed to a decline in chicken volume due to bird flu, rising costs of feed and veterinary medicines, and increased public demand for eggs following an increase in meat prices. In specific regions, egg prices soared to USD 0.11, reaching up to USD 0.22 in Crimea. Facing an imbalance between rising demand and market supply, Russia has decided to allow Turkish egg producers into the market.

The Russian Agricultural Products Inspection Agency (Rosselkhoznadzor) granted export permissions to 17 Turkish companies, subject to inspections for harmful substances. The Rosselkhoznadzor allowed the purchase of eggs from 4 Turkish businesses for the first time in Nov-23. Notably, prices in Russia surged by 42.4% year-on-year (YoY), prompting regulatory attention. In response, the Federal Antimonopoly Service (FAS) is proposing legislation to restrict price hikes by product manufacturers and suppliers, including eggs, to no more than 30% increase without economically justified reasons as part of a broader effort to monitor and control prices.

The Russian government has endorsed a proposal to temporarily eliminate customs duties on chicken egg imports, reducing the rate from 15% to 0%. This exemption for suppliers is set to be effective from January 1 until Jul-24, aimed at boosting domestic market supply and potentially lowering prices. The Ministry of Agriculture anticipates additional egg supplies from Azerbaijan and Türkiye in the coming months.

Actionable Recommendations for Russian Market

The recent surge in Russian egg prices, attributed to bird flu and increased demand, presents a trading opportunity for Turkish suppliers. With a 42.4% YoY price increase, traders can capitalize on the Russian market. However, risks include regulatory changes and potential fluctuations in demand. Turkish suppliers can mitigate risks by closely monitoring regulatory developments and implementing agile supply chain strategies.