Russian ministry reports drop in egg producer prices

MOSCOW. Jan 11 (Interfax) - Producer prices for eggs in Russia have fallen in the past two weeks, as measures to stabilize the price situation are working, the Agriculture Ministry reported, citing Deputy Agriculture Minister Maxim Titov.

"Producer prices have fallen in the past two weeks by 2.5% for Category One eggs and by 4.2% for Category Two eggs. We expect them to also fall at retail chains in the near future," Titov said.

The CEO of the National Union of Poultry Producers, Sergei Lakhtyukhov told reporters that, according to expert estimates, egg production rose last year and is expected to grow further this year.

"As expected, after the end of the period of higher demand ahead of the New Year, prices for chicken eggs stabilized and have already gone down in the wholesale segment. We expect them to decrease in retail as well in the near future," Lakhtyukhov said.

The deputy chairman of the Leningrad Region government and chairman of the region's agriculture and fisheries committee, Oleg Malaschenko said that poultry farms in the region, which is home to Russia's largest egg producers, are reducing wholesale prices for eggs.

"As of today, poultry farms have contracted supplies of most eggs for six months ahead at a stable price. Additional amounts of eggs produced by poultry farms and put on the market are already trading on spot exchange platforms at prices reduced by about 5%," Malaschenko said.

Magnit , one of Russia's largest retailers, also reported that egg prices have stabilized.

"We're seeing a positive change in trend. At the end of December most poultry farms stopped raising wholesale prices and some of them began to revise their offers, offering a cheaper good than in November - the first half of December last year," the company said. "A number of regions are already seeing a decrease in prices, which makes it possible to say that the price situation has begun to stabilize," it added.