Russia’s broiler production forecast to rise in 2013
Russia’s broiler production forecast for 2013 is 2.95 mln tonnes, or 4.2% higher than in 2012, a 120,000 tonnes increase.
This forecasted growth, however, is slower than recent annual in large part because of anticipated difficulties in acquiring affordable feed grains this year, reports Russian statistic services.
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.
It is feared that less efficient poultry facilities may have to file for bankruptcy in 2013, after being faced with increased production costs, lower farm gate prices, and an inability to repay heavy loans producers are facing as a result of modernisation efforts.
Despite concerns related to production in 2013, according to preliminary Russian government data, Russia produced 3.55 mln tonnes of poultry meat (in slaughter weight) in 2012. Statistic services estimate broiler production to have accounted for 2.83 mln tonnes of this figure, a 10% 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.
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