Over the past year, the price of eggs in Ukraine has increased by more than 30%. The average price of a dozen on the shelves is 78 hryvnias, although in the autumn period there was a slight decrease in price - within 5-6 hryvnias.
Reasons for price declines in the fall
Maksym Hopka, an expert from the Ukrainian Agrarian Business Club association, explained that the short-term price drop could have occurred due to several factors:
- Increased supply : The decline in export supplies has created a surplus in the domestic market.
- Warm weather conditions : Producers have reduced the cost of heating poultry facilities.
- Retail promotional policy : Supermarkets, receiving goods at a slightly lower price, stimulated sales through promotions.
However, these short-term factors cannot curb the general trend towards price increases.
Why are eggs getting more expensive?
The main reason is the cost of production. The analyst emphasized that about 70% of costs are for poultry feed. In the coming months, a significant decrease in the price of feed is not expected, but on the contrary, there is a risk of its price increasing.
Difficult weather conditions typical of January-February can significantly affect producers' costs:
- In frosts of -10°C and below, heating costs will increase, which may increase the final cost of products.
- At temperatures of 0°C to -5°C , costs will remain stable, which will avoid a new price jump.
Maksym Hopka believes that egg prices may increase in the winter, but they are expected to stabilize in the spring. An increase in market supply and a decrease in production costs will contribute to a return to a more stable price level.
