Poultry breeding sector position amid the global downturn looks good if compared to other industries of meat market. Pursuant to the estimations of “Express-Obzor” poultry production output will grow by 11.8% in 2009. Thus, there will be no significant production decline within the nearest future. But some growth rate slowing down may be expected, if compared to the period of 2004-2008.Prior to the crisis, poultry market has been developing dynamically. Short-term broiler production cycle and the quota allocation system introduced in 2003 have contributed to increase of the industry’ investment attractiveness and influx of large funds. The national project “Agricultural Complex Development” has become another motivating factor for poultry production growth. Within this project the subsidizing of 2/3 of interest rate under credits on construction and reconstruction of poultry plants was foreseen. Apart from that, the subsidizing of one third of the rate from the regional budget was possible as well.
The increase of chilled meat production share has become one of the features of Russian poultry market for recent years. Thus, currently, chilled poultry share is about 50-60% of total production output, as “Express-Obzor” estimates.
High dependence on imports may be specified as one of the negatives. Thus, in 2007 import share totaled to 39% of the market in volume terms. One of the main reasons of import large supplies is low price for foreign chickens.
Source: Meat Russia
