Monday, November 25 2013

Within the frames of the price hike for local production eggs noticed for the last weeks, at present an egg cost 80 drams in Yerevan stores. Not only big but also medium-sized and small eggs grew in price and became 70 and 55-60 drams respectively. Earlier they cost  60-65 drams, 50-55 and 35-45 drams respectively.

To note, production of all the local producers grew in price. 

According to the data of National Statistics Service, in Jan-Oct 2013 versus Jan-Oct 2012 eggs prices grew by 33,5% in Armenia. The owners of the retail stores said that the egg prices have grown as the producers themselves increased them.  One of the possible reasons of such a price hike may be the feed price hike and the electric power tariff growth from 30 drams up to 38 drams for a kilowatt, as a result of which the expenditure of the poultry plants for keeping their production in refrigerators has grown much.  

As for the State Commission for Protection of Economic Competition, three months ago it demanded from the poultry plants the ground of such a hike. If the eggs price hike has no ground, these plants will be fined up to 200 mln AMD. However, after studying the documents submitted by the plants, specialists of the Commission made a conclusion that feed price really grew. It also became clear that these plants have no funds to buy layer-chickens. So, it has not become clear, how much the statements by the poultry plants are grounded. The Commission goes on analyzing the situation. 

Incidentally, the situation is gradually becoming clear even without the analysis of the Commission, taking into consideration the fact that along with eggs price hike the number of eggs importers to Armenia have grown. In 2013 Armenia's Agriculture Ministry allowed 9 companies to import eggs and in Yerevan City stores we see eggs produced in Bulgaria. This means that the shortage of the local eggs will be replenished by the eggs imported from abroad. However, this will hardly decrease eggs price. To note, poultry plants are still one of the most developed branches of the Armenian economy, but if we increase import of eggs, they will hardly have progress in future. 

As for Agriculture Minister Sergo Karapetyan, he "calmed down" the consumers that there will be no eggs price hike on the threshold of the New Year. The producers have immediately taken "promisees" of the minister. So, it has become clear that eggs prices will not drop. But one question still remains open: why did they grew in price almost twofold?