The price of eggs has nearly doubled in the past year. This is mostly due to the energy crisis, war and drought. Now, the government would cap the price at end-September levels. The price of eggs has nearly doubled in the past year. This is mostly due to the energy crisis, war and drought. Now, the government would cap the price at end-September levels. Of course, producer prices will continue to rise, and retailers will have to make up the difference. This will make all other products more expensive and create shortages.
Capped egg prices
The price freeze announced on Wednesday could reduce the price of eggs from around HUF 110 to HUF 80 per piece. This means that the measure will make eggs around 25 percent cheaper. It is important to note, Telex writes, that the price cap does not mean uniform pricing across the country, meaning, eggs will not cost the same everywhere. Each shop will have to revert to its own price of 30 September, which may result in small differences in the prices that apply from now on.
In recent weeks and months, the price of eggs has skyrocketed. It is also important that there is not just one type of egg. There are also differences in prices according to size (S, M and L) and farming (cage, deep-litter). Obviously, the larger the egg, the more expensive it is, and the deeper the cage, the more expensive it is.
Unbelievable price rise
According to the government, eggs of all sizes will now be officially priced. However, it is not yet clear whether this includes deep-litter eggs also or cage eggs. The most commonly used M-size cage eggs cost an average of HUF 80 in week 39, including 30 September. Since then, it has jumped up to an average of HUF 108, as can be seen in the most recent figures. This represents an increase of 35 percent in one month. In October, the price of eggs rose by 87.9 percent on an annual basis.
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This will most likely result in serious shortages
As can be seen from the January price caps, maximising the retail selling price can cause quite a disruption to supply, Telex warns. Data from the Institute of Agricultural Economics show that traders have failed to pass on the price caps to producers, i.e. they now buy these products at a higher price than they sell them on. As a result, there are increasingly frequent shortages of price-fixed products. Meanwhile, there are few purchases of similar foods that often cost twice as much. Something similar can be expected with eggs.
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