Russia's import of eggs casts a shadow on the stability of the Azerbaijani market

Azerbaijan is bracing for potential disruptions in its egg market as Russia, grappling with a prolonged shortage of eggs, initiates imports from Azerbaijan and Turkey. The move comes amid a surge in egg prices within Russia, escalating by a significant 46 percent since the beginning of the year.

The Russian Association of food manufacturers and suppliers (Rusprodsoyuz) reported a record average retail price of 12.8 rubles (24 kopecks) per egg from December 11 to 17, marking the highest point in nearly a decade. Russian President Vladimir Putin attributed this surge to heightened demand, while domestic production remained relatively constant.

Minister of Agriculture Dmitry Patrushev announced Russia's decision to import eggs, a process already underway with Azerbaijan having dispatched 612 thousand eggs, according to the Federal Service for Veterinary and Phytosanitary Supervision (Rosselkhoznadzor). This development raises concerns about the potential impact on Azerbaijan's domestic egg market.

In January-November 2023, Azerbaijan witnessed a robust egg production of 2 billion 100 million 200 thousand, marking a significant 9.9 percent increase compared to the same period in 2022, according to the State Statistics Committee of Azerbaijan (SSC). However, concerns arise as Azerbaijan already exports eggs to the Middle East, including Qatar, Saudi Arabia, and Iraq, with a daily export capacity of 1.6 million units.

The Association of Poultry, Egg Producers, and Exporters of Azerbaijan reassured that the daily domestic demand for eggs stands at approximately 3.5 million units, well below the daily production of around 5 million. Consequently, they assert that the egg export to Russia will not strain the domestic market.

Contrary to this optimistic outlook, agriculture expert Vahid Maharramov expressed reservations, in an interview with Azadlig Radio, noting that  Azerbaijan satisfies only 60 percent of its domestic egg demand. He highlighted that if Azerbaijan, already falling short of international norms by producing 190-200 units against the per capita norm of 290 units, exports eggs to Russia, it might trigger a local price hike.

Maharramov also sounded a cautionary note on potential profiteering, suggesting that certain officials with vested interests might exploit the situation at the expense of egg producers. Recent observations in Baku indicate a gradual rise in egg prices, with broiler eggs reaching 16-17 gepiks and village eggs fetching 35-40 gepiks.

As Azerbaijan navigates the delicate balance between domestic demand and lucrative export opportunities, the government faces calls to carefully monitor the situation to prevent potential market imbalances and ensure stability in egg prices.