A price collusion on the chicken eggs market?

Submitted by bashun on Wed, 02/28/2018 - 17:33

There is reason to talk about cartel collusion of the largest producers of chicken eggs.

Until now, the market for chicken eggs behaved according to market rules. The price for this product throughout the year then rises to a maximum, and then falls again after a decrease in consumer demand and a decrease in exports.

However, the current price, instead of falling after reaching the peak, demonstrates stability and even growth.

"Analysis of the data of the last three years shows that this year the price trend differs from the previous two. In January 2016, the price, according to state statistics, for chicken eggs fell by 16%, from 24.3 UAH for a dozen to 20.4 UAH. In January of last year, the situation repeated. In December, on a wave of demand, the price is raised upwards, and then it falls. January 2017 this product showed a drop in value by 11%, that is from UAH 21 per dozen to UAH 18.6. This year the state monitoring fixes the growth of the value by 2%, from 30.2 UAH per ten to 30.8 UAH. But taking into account the change in the method of counting, that is, the transition from the calculation of the cost of eggs of the 1-2 categories to the average price of 1, 2 and the highest category, we can speak about 18% growth, from 26 UAH for a dozen to 30.8 UAH, "- says Oleksii Doroshenko on his page in Facebook.

The expert notes that a possible cartel collusion is indicated by the coincidence of the situation in the market and insider information.

"The inspection of the producers of chicken eggs by the antimonopoly body should include a study of the price at which the products are sold to stores or wholesale buyers in our country and the export price. If it turns out that the export prices are significantly lower than the sale on the domestic market, then there is every reason to talk about anticompetitive actions" , - emphasizes Oleksii Doroshenko.


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