Brazil remains countries leading poultry supplier
Russian poultry industry has been developing rapidly during the last several years, leading to a significant increase of the poultry meat production and satisfaction of the country’s domestic needs.
According to Information-Analytical Agency EMEAT, the volume of production of poultry meat in Russia amounted to 4.087 million tons in slaughter weight (5.561 million tons in live weight) for the period from January to November 2017. Domestic production increased by 8.0% compared to the same period in 2016. The volume of poultry meat imports increased by 7.8% compared to the same period in 2016 and amounted to 92,600 tons for the period from January to November 2017.
The report pointed out that Brazil remains the leading poultry supplier, accounting for 84.1% of all supplies. Argentina is second in terms of the volume of imported products at 14.9%. Import of chicken meat to Russia from the countries outside the former Soviet Union increased by 10% compared to 2016, and amounted to 91,400 tons. Imports of turkey meat decreased by 58.8% to 1,100 metric tons, and duck meat imports decreased by 29.5%.
During the period from January to November 2017, poultry exports from Russia to countries outside the Eurasian Customs Union increased by 54.5% compared to the same period in 2016 and amounted to 101,400 tons, Ukraine accounts for 44.9% of poultry exports (Donetsk and Lugansk regions) and Vietnam for 41.3%.
The volume of exports from Russia to the Eurasian Customs Union amounted to 125,800 tons for the period from January to November 2017, Republic of Kazakhstan accounts for 19.4%. The volume of exports increased by 43.5% during the year.
In Russia, domestic prices for chicken meat decreased by 1.0% during December 2017 compared to the previous month. Chicken cuttings and by-products became cheaper by 0.8% as compared to the previous month, according to the EMEAT report.
Wholesale prices for imported chicken meat increased by 1.0% in December 2017, and by 0.7% during the year.
As of December 25, 2017, the general price level for turkey meat produced in Russia increased by 0.8% during the month. Cuttings prices fell by 0.3% in December, the turkey carcass prices increased by 4.6%. Prices for imported turkey meat decreased by 0.1% in December 2017, but increased by 4.4% during 2017 due to domestic demand for turkey meat in Russia.
In the near future, the report suggested Russian poultry producers could face serious issues due to overproduction and the decline of real incomes and purchasing power of the population.
“Further increase in poultry meat production is therefore necessary only with the increase in exports and expansion into new markets,” the report said.