Antimonopoly Committee warns against egg price growth

Ukraine’s Antimonopoly Committee recommended egg producers and retailers set reasonable prices for eggs, Interfax reported yesterday. Avangard (AVGR LI) and Ovostar Union (OVO PW) are among the list of producers to whom the recommendation was directed. According to the committee, average egg prices increased 22% since August without any visible reason.

Alexander Paraschiy: The increase in egg prices that the Antimonopoly Commited cited is purely seasonal, and we believe is more of the result of low prices in August. Moreover, the increase is supported by growth in production costs on higher grain prices. Nevertheless, the message looks slightly discouraging for the investment case of Ukrainian egg producers, who hardly can ignore it.