Russia Poultry and Products Semi-annual Report 2013
Report Highlights:
The Russian broiler production forecast for 2013 is 4.2% higher than in 2012 (a 120,000 MT increase) to 2.95 MMT total. This expected growth, however, is slower than recent annual increases in large part because of anticipated difficulties in acquiring affordable feed grains this year. Soaring prices for feed grains are expected to have a direct impact on the Russian industry’s production costs, not only slowing the pace of growth, but also hurting profitability. Imports are expected to remain strong in 2013, with Belarusian poultry accounting for a growing percentage of imported product.
Executive Summary:
FAS/Moscow’s broiler production forecast for 2013 is 2.95 MMT, or 4.2% higher than in 2012 (a 120,000 MT increase). This forecasted growth, however, is slower than recent annual increases (i.e., approximately 250,000-300,000 MT per annum) in large part because of anticipated difficulties in acquiring affordable feed grains this year. In fact, soaring prices for feed grains (as a result of a severe draw-down in feed stocks due to a smaller crop in 2012 and strong early season exports) are expected to have a direct impact on the Russian poultry industry’s production costs, not only slowing the pace of the industry’s growth, but also decreasing industry profitability. This may lead to less efficient poultry facilities having to file for bankruptcy in 2013, increased production costs, lower farm gate prices, and an inability to repay heavy loans producers are facing as a result of modernization efforts.
Despite concerns related to production in 2013, according to preliminary Russian government data, Russia produced 3.55 MMT of poultry meat (in slaughter weight) in 2012. FAS/Moscow estimates broiler production to have accounted for 2.83 MMT of this figure, a 10 percent increase over 2011
production levels. Imports also remained strong, with the United States accounting for the lion’s share of product, followed by Belarus, which has seen a significant increase in the volume of poultry it has exported to Russia over the last few years.
.........................
