Ukraine does not have effective tools to control the prices of food producers, so they have ample opportunities for manipulation, and the market and consumers experience a real price shock because of this.. This was written by journalists of "
" Thus, an artificial shortage formed on the Ukrainian market, and consumers were shocked at Easter by prices at European levels,"
Analysts see objective reasons for the 120% price rally in eggs that occurred at the end of 2022 due to the economic consequences of the war, when poultry farms were destroyed.
However, no one can explain the economic reasons for the sharp rise in egg prices by Easter 2023. Experts are convinced that this is a consequence of uncontrolled manipulations of manufacturers.
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" Already at the beginning of spring 2023, according to economic analysts, all the prerequisites were in place on the market: the seasonal factor, the resumption of the number of laying hens, the entry into the market of additional volumes of products from small households.. But contrary to the classical laws of the market, manufacturers continued to raise prices during the war and economic difficulties in order to capitalize on the traditional rush demand before Easter.. In addition, an artificial shortage has formed on the market - eggs of Ukrainian production were sent for export, ”the authors of the price investigation explain..
They draw attention to the fact that the rise in prices began at a time when the domestic market was oversaturated with the supply of eggs in the face of seasonal growth in their production and limited exports..
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" But objectively, the state has no tools to influence the formation of producer prices,"
Such jumps are likely to continue for any product, because so far state control over prices occurs only in retail trade - fixed trade margins are checked, traders control price changes.. But the lack of control over the manipulation of manufacturers is a real problem..
" Also, terra incognita for the state is the margins of distributors and chains of intermediaries often related to the manufacturer, who also add their share to the price before the appearance of goods on store shelves..
The authors of the publication say that without the attention of the Antimonopoly Committee of Ukraine, investigating the pricing of eggs, there was a probable shadow concentration in the market.
" But they do not have their own logistics, they cannot establish independent sales in the domestic or foreign markets.. Therefore, they are forced to sell almost all products at low prices on a large wholesale basis to powerful giants from the “big triad,” the journalists’ investigation says..
A group of large producers are said to hold control of over 90% of the eggs on the market and can impose selling prices on retailers from a position of strength.
Svetlana Pashko, senior researcher at the Institute of Agrarian Economics, noted that the effective supervision of the Antimonopoly Committee over the observance of fair competition in the market could become an effective state market tool to control the validity of changes in prices for socially significant food products.