Price Crisis in the Egg Market: Facts and Consequences

Abstract

The sharp rise in egg prices in 2023 in Russia caused a wide public outcry, which required explanations from experts and government officials. One of the arguments was the thesis about the increase in demand for eggs due to the growing prosperity of citizens. The paper analyzes the situation, which covers price dynamics, assessment of changes in consumption, sales, production of the product, the possibility of collusion between producers and sellers, demand for eggs from the food industry in the second half of 2023. The authors note the problems at the production stage, low profitability, saturation of the domestic market. In their opinion, the return of prices to the previous level is hardly possible, the price increase was predetermined and useful from the position of preserving the incentives of activity in egg poultry farming, preventing the shortage of eggs in stores. According to the results of the analysis proposals for the Government of the Russian Federation are made in order to increase the attractiveness of egg production business.