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Yerevan shops and markets are selling eggs from 8-35 drams (two to nine cents each), depending on size, whereas until now the commodity has been stable at about 10-17 cents each (40-65 drams).

According to the data of the National Statistical Service of Armenia, reported on June 30, a 1.3-percent price decline in provisions was registered in Armenia in June as compared to May, which was essentially determined by 8.5-4.8-percent price decline in eggs, vegetable, fruit and sugar.

Some believe the egg devaluation is a result of chicken-farm competition. It is believed, for example, that Lusakert Pedigree Poultry Plant sells eggs even below their cost of production.

The company has even announced a sales promotion, offering a pass to Yerevan’s Aqua Park water amusement attraction (valued at $16) to any customer buying 100 eggs, paying 2,500 drams ($7).

Armenian press spread information that Yerevan Poultry Plant was the first to cut the egg price, and later Lusakert Pedigree Poultry Plant started cutting the egg price, too, in order to confront competition. The egg price decline is partially determined by the decrease in egg demand by shopkeepers who buy fewer products that require refrigeration, including eggs. Still, the summer trend is not enough to explain the dramatic price drop.

Such an abrupt price decline has never been seen here. Many consumers are pleasantly surprised, and have taken advantage of the low prices, buying more eggs than usual.

“Yesterday I bought 20 eggs paying 15 drams each,” said Rita Minasyan of Yerevan, adding that she would use them to prepare omelet for her grandchildren.

Some consumers, though, consider the abrupt drop in egg prices to be suspicious, and they suspect that may be old eggs or even spoiled.
Echmiadzin resident Rima Gevorgyan, 42, tells that she bought about 50 eggs for her son’s school excursion in late June, cooked them and took with them on the excursion.

“We threw almost 15 eggs away, because they smelt bad, and they did not look good, either,” Gevorgyan says.

The State Commission for the Protection of Economic Competition of Armenia (SCPEC) also referred to the issue on Friday, July 2. During a special session, SCPEC made a decision on filing an administrative lawsuit against a number of economic entities operating in the chicken egg market.

“Taking into consideration the results of the monitoring held by SCPEC in chicken egg market, as well as recent press publications about some concerns connected with chicken egg market, SCPEC made a decision on filing an administrative lawsuit against a number of economic entities operating in the chicken egg market, which dropped egg sale prices, allegedly violating the RA Law ‘On Protection of Economic Competition,’” SCPEC statement says.

Abgar Yeghoyan, Head of the Consumer Rights Protection NGO, says that the reason for the drop in egg prices is overproduction.

“Egg-producing companies have increased the number of chickens. Besides, this season is very productive for eggs laying, and there is no egg export,” Yeghoyan told ArmeniaNow.

According to the data of the Poultry Breeders Union of Armenia, in 2009, 630 million eggs were produced in Armenia, and only 578 million eggs were consumed. Whereas during the first five months of 2010, 305.3 million eggs were produced; 29.8 percent higher than compared to the same index last year.