EEC Council Decision: Tariff Exemption on Chicken Egg Imports to Russia – Impact on Prices & Supply Chain

2023-12-18 06:52:00

Photo: Getty Images

Moscow. December 18. INTERFAX.RU – The EEC Council decided to provide a tariff benefit in the form of exemption from import customs duties on chicken eggs (code 0407 21 000 0 EAEU Commodity Nomenclature for Foreign Economic Activity). The benefit will be provided from January 1 to June 30, 2024 for deliveries to the Russian Federation of up to 1.2 billion units. Supplies may begin not only from Turkey, but also from Iran. This was reported in the EEC press release.

“Supplies from non-CIS countries have not been carried out since 2020, which was due to a high level of self-sufficiency. However, now, once morest the backdrop of increased consumer demand and a decrease in production due to the epizootic situation, we are seeing a noticeable increase in the price of eggs,” noted EEC Trade Minister Andrey Slepnev, quoted in the message.

The temporary tariff relief, he said, will ensure supplies at a cost comparable to domestic production, in particular from Turkey and Iran.

“The measure is short-term in nature and will help curb the rise in consumer prices for socially important products in the winter and spring, as well as avoid the possible occurrence of a shortage,” Slepnev expressed confidence.

Tariff benefits will be provided subject to confirmation by the authorized body of the intended purpose of the imported goods.

The Russian Federation has approached the EEC with a proposal to eliminate duties due to the sharp rise in egg prices recently. Their rise in price has become the subject of special attention from the authorities. Thus, Russian President Vladimir Putin, live on air last week, explained the rise in prices by a failure in the work of the government, which did not provide imports in the required amount once morest the backdrop of increased demand. He expressed hope that the measures taken will improve the situation.

The issues of pricing eggs are under the control of the Federal Antimonopoly Service of Russia, and the Prosecutor General’s Office has also become interested in the pricing process.

According to Rosstat, egg prices in the Russian Federation increased by 4.6% from December 5 to December 11, and by 46.2% since the beginning of the year. This is the highest growth rate in the food market.

Agricultural organizations of the Russian Federation produced 3.106 billion eggs in November, which is 0.2% less than in the same month last year. Over 11 months, production increased by 2%, to 34.847 billion units. Shipments of eggs in November decreased by 1.8%, to 2.817 billion pieces, in January-November they increased by 1.9%, to 31.254 billion. Egg stocks in agricultural organizations at the end of November amounted to 245.9 million pieces, which is 46. 1% less than last year.

As Agriculture Minister Dmitry Patrushev said on Sunday, supplies of eggs from Turkey are expected in two to three weeks, and prices will begin to decline following the New Year.

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