Egg production in the Russian Federation has fallen for six months in a row

Egg production in the Russian Federation has been falling for six months in a row. According to the results of January-February, production decreased by 1.8% year-on-year, to 6.11 billion units, which experts attribute to the consequences of bird flu outbreaks. Retail chains do not yet see the impact of reduced supply on prices due to stabilization of demand. Market participants expect that the Easter period will be indicative for the industry.

According to the results of January-February 2024, the production of chicken eggs in Russia decreased by 1.8% year-on-year, to 6.11 billion pieces, according to the materials of the Russian Poultry Union. In physical terms, the figure decreased by 110.1 million eggs. In February alone, the production of chicken eggs decreased year-on-year by 1.5%, and month-on-month by 7.5%, to 29.3 billion pieces, it follows from the materials. General Director of the Russian Poultry Union Galina Bobyleva did not comment to Kommersant.

The monthly volume of egg production has remained lower than last year since September 2023, and this product has become one of the most expensive products on the food market, according to Rosstat data. According to the service, average consumer prices for eggs from January to December 2023 increased 1.6 times, to 132.45 rubles. for ten grand. Russian President Vladimir Putin called the situation with egg prices a “failure in the work of the government,” explaining the dynamics by increased demand in conditions of limited supply.

To stabilize the situation in Russia, duty-free quotas were introduced for the import of 1.2 billion eggs in 2024; the Ministry of Agriculture announced plans to increase production and work on transferring manufacturers and retail chains to long-term contracts. In general, over the past year, according to Rosstat, egg production increased by 1.8%, to 38.05 billion pieces. At the end of February 2024, according to Rosstat, chicken eggs on average at retail cost 129.17 rubles. for ten grand.

Agrifood Strategies President Albert Davleev attributes the year-on-year decline in chicken egg production to outbreaks of avian influenza. In January, he points out, the disease was detected at the Vladimirskaya poultry farm in the Astrakhan region, which specializes in the production of eggs. Egg-producing poultry factories are generally more susceptible to avian influenza than those specializing in meat production, Agrifood Strategies previously noted. As follows from the materials of the Russian Poultry Union, as of March 1, 2024, all agricultural enterprises in the country had 465.3 million heads of poultry, which is 1.2% less than a year earlier. The volume of poultry meat production in January-February 2024 year-on-year increased by 0.4%, to 1.06 million tons.

The head of the National Meat Association, Sergei Yushin, points out that not all poultry factories where bird flu outbreaks were detected in 2023 have restored production. The process, he said, can take from several months to a year and a half. Director of Yakov and Partners Alexey Kletsko expects that the exit of poultry farms affected by disease outbreaks in the Yaroslavl and Vologda regions, together with an increase in production at enterprises in the Rostov and Leningrad regions, will most likely allow it to exceed last year’s levels in the medium term.

A Kommersant source among retailers says that the reduction in the supply of chicken eggs is noticeable, but this does not affect prices. Lenta reported that chicken eggs are available in full. According to Mr. Davleev, there is no noticeable impact on the market and prices from a decrease in egg production, since the demand for these products has stabilized.

A Kommersant source in the industry notes that many large egg producers have entered into agreements to curb selling prices, and food producers could partially switch to imported egg products. According to Kommersant’s interlocutor, the balance of supply and demand in the market will be visible at the end of the high demand season for Easter.

The Ministry of Agriculture told Kommersant that the volume of egg production in January-February “fully meets the needs of the market.” For the operation of poultry farms, they added, issues of biosafety, modernization, and provision of resources are being worked out, and to support, in particular, the loan period for the construction of egg poultry farms has been increased to 15 years.

Anatoly Kostyrev