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Russia actively increasing poultry meat exports

Brazil remains Russia's leading poultry supplier.

Russia's poultry industry has been developing rapidly during the last several years, leading to a significant increase in poultry meat production that meets 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 8.0% compared to the same period in 2016. The volume of poultry meat imports increased 7.8% compared to the same period in 2016 and amounted to 92,600 tons for 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 source of imported products, at 14.9%. Imports of chicken meat to Russia from the countries outside the former Soviet Union increased 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 January to November 2017, poultry exports from Russia to countries outside the Eurasian Customs Union increased 54.5% compared to the same period in 2016 and amounted to 101,400 tons; Ukraine accounted 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 January to November 2017, and the Republic of Kazakhstan accounted for 19.4%. The volume of exports increased 43.5% during the year.

In Russia, domestic prices for chicken meat decreased 1.0% in December 2017 versus the previous month. Chicken cuttings and byproducts became 0.8% cheaper than the previous month, according to the EMEAT report.

Wholesale prices for imported chicken meat increased 1.0% in December 2017 and by 0.7% during the year.

As of Dec. 25, 2017, the general price level for turkey meat produced in Russia increased 0.8% during the month. Cuttings prices fell by 0.3% in December, while the turkey carcass prices increased by 4.6%. Prices for imported turkey meat decreased by 0.1% in December 2017 but overall increased 4.4% during 2017 due to domestic demand for turkey meat in Russia.

In the near future, the report suggests that 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.

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