poultry farmers are asking for benefits and limiting the markup on eggs to 5–10% – Kommersant

Russian poultry farmers can increase production of eggs and poultry meat amid growing demand in exchange for government support to stimulate investment. Representatives of the Russian Poultry Union ask the authorities to provide benefits and limit trade margins on eggs. This follows from a letter from the Russian Poultry Union to the Ministry of Agriculture, which is cited “Vedomosti”. The presence of the letter was confirmed by the Russian Poultry Union and the ministry.

According to the Russian Poultry Union, it is necessary to include the construction and modernization of poultry farms in the program for reimbursement of part of the direct costs incurred. According to the association, it is necessary to subsidize the creation of infrastructure facilities, communications and roads. Another condition is to increase the limit of short-term concessional loans for one borrower to 1.5 billion rubles. per year (currently only 600 million rubles). It is also necessary to allocate limits for poultry farming in a separate direction and allocate land as a priority for new poultry houses.

In addition, the Rospoultry Union also proposes, at the legislative level, to limit the trade margin on eggs to 5–10%, limit payment terms for supplies to ten days, prohibit the collection of bonuses on socially important products such as eggs and poultry meat, and oblige retailers to enter into long-term contracts for supply of eggs at least 75% of sales volume.

A representative of the Ministry of Agriculture said that the department is already implementing a set of measures aimed at supporting poultry farming. He noted that since the end of last year, preferential investment loans have been available to producers for construction and reconstruction, as well as for the purchase of equipment for broiler production. According to the department, the volume of state support for agriculture under the main industry programs in 2024 will amount to 558.6 billion rubles.

According to the Rospoultry Union, poultry production will increase this year. This is due to “serious investment interest in the industry.” However, Vedomosti’s interlocutor did not give exact figures.

In November last year, the FAS initiated an audit of the increase in egg prices. Retail chains have been called upon to voluntarily limit markups to 5% until March 2024. President Vladimir Putin also commented on the problem with egg prices on the direct line on December 14. According to him, prices soared because demand for the product increased, but production did not increase. According to Rosstat, for the period from January 10 to 15, the average price of eggs in Russia fell for the first time since June 2023.

Read more about the situation in the consumer market at the end of December in the Kommersant article. “Between sovereignty and sausage”.