World meat industry news

At the end of 2022, China began to increase the export of poultry meat to Russia: in November-December, about 3 thousand tons of products were delivered. In January-February this year, China shipped more than 1,000 tons of poultry meat, said Sergei Lakhtyukhov, director general of the National Union of Poultry Breeders, at the conference "Agroinvestor: PRO Livestock and Feed". He called the situation a "wake-up call" that "we need to think about."

At the same time, in general, the volume of poultry imports to Russia is declining: at the end of 2022, the country purchased about 180 thousand tons from foreign markets, 21% less than in pre-COVID 2019. And the volume of export deliveries to the countries of the Customs Union and non-CIS countries during this period increased by 68% to 350 thousand tons. Russia's share in world poultry exports reached 2.4% at the end of last year against 0.4% in 2010.

“Today, the main investments in the [poultry] industry come from exports. Companies that actively develop exports receive preferential loans in accordance with Government Decree 512 [dated April 26, 2019] and actively invest in their industry. Tens of billions of credit and monetary funds are directed to the development of those gaps that have formed as a result of restrictions from unfriendly countries. We are developing logistics, forming our own fleets of refrigerated containers,” said Lakhtyukhov.

Speaking about the future prospects for Russian poultry exports, Lakhtyukhov recalled the words of Elvira Nabiullina, chairman of the Central Bank, that "our future is more vague than ever." However, he assured that he himself is optimistic about the future, as there are companies that create new logistics routes. At the same time, according to official statistics, in the first two months of 2023, meat exports from Russia decreased compared to the same period last year. However, as Lakhtyukhov clarified, this is also due to the fact that if earlier deliveries to the DPR and LPR were considered as exports, now they are considered as internal displacement.

The head of the industry association also recalled that in 2022, the industrial production of poultry in live weight increased by 306.6 thousand tons and amounted to 6.53 million tons. If we take into account production in farms of all categories, then the figure amounted to more than 7 million tons. poultry meat output in January-February (+2.9% vs. 10% a year earlier), Lakhtyukhov explained that in 2022, production grew from a low base after negative production volumes in January 2021.

In his speech at the conference, Lakhtyukhov also said that in late February - early March, the cost of producing a chicken carcass approached the level of selling prices. “Now prices are being adjusted in a positive direction for us and at least somehow allow companies to continue their financial activities,” he added.