Spring 2025: Crisis in Russian egg poultry farming and its causes

1. Pressure from retail chains: Wholesale prices for eggs have fallen to 55 rubles per dozen, which is significantly lower than their cost price, which is at least 60 rubles. This leads to financial difficulties for producers. In retail, prices for eggs are significantly higher - up to 113 rubles per dozen, due to high markups from retailers.

2. Lack of response from regulators: The Federal Antimonopoly Service (FAS) and the Ministry of Agriculture did not respond to proposals to introduce restrictions on trade markups and EXPORT support, even during a period when prices traditionally rise.

3. Patent issues: IQ-Pak is demanding 2.5 million rubles from the Okskaya poultry farm for using patented egg packaging, which threatens logistics and could lead to increased costs.

4. Bankruptcy risks: Egg production is growing by 5%, which, combined with pressure from retailers, poses a threat to the survival of many poultry farms. This could lead to both less competition and higher egg prices in the future.

5. Economic consequences: Manufacturers are forced to freeze investments in modernization, which can lead to equipment obsolescence and a decrease in product quality. In the future, this can cause shortages and a new round of price crises.

In the face of these challenges, the industry must respond proactively: introduce legislative restrictions on markups, create funds to support exports, and challenge patent claims through antitrust mechanisms. Spring 2025 has become a decisive moment for egg poultry farming, requiring urgent measures from all market participants.