Poultry production in the Russian Federation finally stabilized

Poultry production in the third quarter of 2016, has stabilized after a rapid growth for more than ten years. It is reported by "Kommersant" with reference to the data of the analytical center "Sovekon".

According to experts, in the next quarter, the release of poultry may even be reduced, despite an increase of 6,3% in the first quarter and 3,7% - in the II.

According to Andrei Sizov, the director of Sovekon, the main reasons for the decline in output are reduced demand for products, the continued decline in Russian incomes and rapid growth rates in the past (average production growth from 2000-s was 13%). According to Galina Bobyleva, the general director of the Rosptitsesoyuz, other negative factors are the stagnation of product prices and the increasing costs of poultry farmers.

According to Bobyleva, the domestic poultry meat market is already saturated and domestic demand is fully satisfied. In turn, representatives of Auchan, Metro Cash & Carry and Lenta told the publication that they did not observe a decline in demand for poultry meat. The head of the National Meat Association, Sergey Yushin, notes that poultry meat occupies 45% in the meat basket of Russians, while against the background of domestic market restrictions, foreign markets, primarily China, are closed for domestic poultry farmers. “And the process of entering the markets of the Middle East and North Africa is hard, in addition, there are strong competitors, mainly from Brazil,” believes Yushin. According to the head of the meat association, in the fourth quarter, the production of poultry may even be reduced due to the further rise in prices for soybean meal.

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