FAS EXPLAINED MECHANISM FOR CONCLUDING AGREEMENTS ON PRICE STABILIZATION FOR CHICKEN EGGS

The Authority sent recommendations to all regions of the country on the parameters for concluding agreements within the framework of the Resolution of the Government of the Russian Federation No. 662

Now, such agreements have already been concluded in 17 regions, which contributed to lower prices for chicken eggs. The FAS Russia recommends that other regions, if necessary, also conclude agreements within the framework of the resolution of the Government of the Russian Federation. The Authority had prepared appropriate recommendations that will help participants to avoid mistakes in their preparation, as well as increase the effectiveness of their implementation.

Thus, based on them, agreements can be concluded between regional authorities and manufacturers, suppliers of goods or trade organizations. The documents may establish obligations to reduce and non-raising prices, or limit margins on chicken eggs. At the same time, the FAS Russia emphasizes that prices and margins should not be fixed at the level formed during periods of peak demand and price growth.

The documents should specify the obligations of manufacturers and suppliers to deliver goods to trade organizations in time and fully (if possible), and trade organizations should take all possible measures to ensure the availability of eggs on store shelves in sufficient quantities. In addition, it is advisable to specify in the agreements that the obligations assumed apply to chicken eggs, regardless of the quantity in the package and the lot size, sold/purchased both under contracts and tenders.

The FAS Russia recommends that all parties to the agreements post information about their obligations in open access on their official websites. Trade facilities should also inform consumers about goods within the framework of agreements directly in stores – for example, through special price tags "‎social goods"‎.

The companies participating in the agreement must regularly report to the regional authorities on compliance with their obligations.  

The FAS Russia recalls that such agreements are a temporary measure of rapid response to changes in the cost of socially significant goods. The Authority recommends to the regional authorities to organize a dialogue with market participants to work together to reduce the supply chain of chicken eggs, assist in the purchase and supply of the most affordable goods to the region.