Russia Imports Azerbaijani Eggs to Tackle Soaring Prices Amidst «Egg Crisis»

In a bid to address the surging demand for eggs and counter the escalating prices in Russia, the first shipment of 36 tons of edible eggs from Azerbaijan has reached the Russian Federation, as reported by the country's agricultural watchdog, Rosselkhoznadzor.

The timely intervention from Azerbaijan follows a recent outcry raised by Russian President Vladimir Putin during his Direct Line session, where he criticized the government for its inability to meet the increased demand for eggs. According to the Russian Federal State Statistics Service (Rosstat), egg prices in the country soared by 4.6% from December 5 to 11, marking a staggering 46.2% increase since the beginning of the year, the highest growth rates in the food market.

To swiftly address the shortage, the Russian government has decided to import eggs not only from Azerbaijan but also from Turkey and Iran. Azerbaijan, capable of supplying up to 40% of its total egg production, has stepped up to support its neighbor.

It is noteworthy that Azerbaijan does not face any problems, with a daily demand for chicken eggs reaching 3.6 million pieces while producing around 5 million eggs per day.

Similarly, the egg situation in Russia draws parallels with Azerbaijan's experience in March 2011, which led to President Aliyev's criticism of poultry farms and subsequent measures to achieve self-sufficiency in egg production.

In a bid to further alleviate the situation, Agriculture Minister Dmitry Patrushev anticipates egg shipments from Turkey within the next two to three weeks, with prices expected to decrease after the New Year. The Eurasian Economic Council has also decided to provide a tariff benefit, exempting import customs duties on chicken eggs for deliveries to Russia from January 1 to June 30, 2024, for up to 1.2 billion units from both Turkey and Iran.

Examining the cost dynamics, eggs are priced differently in Baku and Istanbul. In Baku, a dozen eggs range from 2.39 to 2.45 Azerbaijani manats, translating to approximately 107 to 130 Russian rubles. Meanwhile, in Istanbul, the cheapest dozen is priced at 156 rubles, with another supermarket selling a dozen for 235 rubles.

An interesting factor affecting prices is the cost of feed. In Azerbaijan, feed constitutes 65% of egg production costs, whereas in Russia, it accounts for 34%. The provision of inexpensive feed by the Russian government to Azerbaijani broiler farms can potentially reduce domestic and export prices for eggs, since feed plays a significant role in determining the overall cost structure.--0-