FAS: business in Russia will lose 100 billion rubles due to curbing egg prices
Business in Russia will lose about 100 billion rubles due to curbing egg prices. The losses of retailers were assessed by the Federal Antimonopoly Service (FAS), reports newspaper “Izvestia”.
The department proposed to prohibit retail chains from charging remuneration from suppliers of eggs of categories C1 and C2, which are socially significant, from March 1. Typically this reward is five percent of the total supply.
“This measure will have a positive impact on the price situation in the domestic market and in the future poultry products will remain accessible to a wide range of consumers,” the Ministry of Agriculture explains the need for this measure
As a result of the ban, retailers will not only receive part of their income, but will also spend money on renewing contracts. Over the next six years, these losses will amount to 92.6 and 5.7 billion rubles, respectively. Businesses invest in the price of eggs the funds they receive in the form of remuneration, which increases demand for products, the FAS explained.
The Okskaya poultry farm, one of the five largest producers of chicken eggs in Russia, warned of an increase in prices for its products from November 2024 by five percent. The reason for the increase in prices is said to be the rise in price of grain components of feed by 40 percent, of mineral and vitamin complexes by 89 percent, and of packaging materials by 5.8 percent. At least stores in Moscow and the Moscow region received notice of the price increase.
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