The expert called a more effective measure than price containment

Keeping the price of poultry and eggs in RUSSIA in the long term is negative for production, a much more effective measure could be the introduction of food aid to citizens, commented Ilya Bereznyuk, managing partner of the consulting agency Agro and Food Communications, to RIA Novosti.

"If we consider the situation at the moment, this is probably a good decision - these are socially significant goods, and two months is not a very long time for which the situation on the market can stabilize. But you can’t keep prices indefinitely. Companies cannot work at a loss , they will close, and the total production of Russian products will decline," Bereznyuk said.

"Moreover, a very significant share in the cost of poultry products is occupied by exchange rates - these are feed, these are hatching eggs. In my opinion, the Ministry of Agriculture today presented very effective measures to support domestic poultry farmers, but the ministry cannot influence exchange rates," continued he.

The expert recalled that in Russia for many years the issue of introducing food aid for low-income citizens has been discussed. In mid-February, Russian President Vladimir Putin , during a meeting with the leaders of the State Duma factions, said that he considered it possible to think about the idea of ​​introducing food certificates, although now this is not as relevant as it was at the height of the pandemic.

“This is a much more effective measure than price containment. The introduction of food cards could greatly help poultry farmers and not only them: producers would understand that when they recover from the effects of the pandemic and the weakening of the ruble, they would have a guaranteed sales channel for their products. Thus , they would receive an incentive to increase investment and increase production efficiency," Bereznyuk said.

The concept of targeted food assistance to low-income Russians (also known as the ration card program or food stamps, similar to the American system) was discussed in Russia several years ago, but was not implemented.