Russian poultry market is experiencing the increase of competition among the major players according to a new survey by RBC (Russian business consulting agency).
Industry leaders have increased the expansion into regional markets, trying to occupy the niches that were released after the steady decrease of the supply in imported poultry products. Experts pointed out that currently the main competition is unfolding in the wholesale sector and not so much for the “final” consumer, but for a place on the shelves of retailers.
Also the Russian poultry industry is currently undergoing the process of consolidation. In 2011, there were two significant purchases of large companies, resulting in changes to the balance of power in the poultry market. The group of companies “Cherkizovo” acquired agricultural holding “Mosselprom”, and a few months later a group of companies “Resource” bought the large poultry production company “Stavropol Broiler “. Also in the last two years a significant number of poultry producers in the country went bankrupt which also affected the whole structure of the market.
Russia is currently in the process of completing privatisation of the state poultry farms. Next year the last poultry farms owned by administrations in the different regions will be put up for sale. As the result of all this in the next coming three years, experts forecast the volume of domestic poultry production could increase by 20% compared to the current level. The share of imports will fall from the current 19% to 9%. Poultry consumption will grow relatively slow and in 2014 will exceed the 2011 level by 13% (from 24.6 kg per capita to 27.7 kg).