World meat industry news

The National Union of Meat Processors (NCM) has asked the Ministry of Agriculture to impose restrictions on the export of chicken or establish a quota for its duty-free import in order to stabilize prices in the domestic market. This is stated in a letter from the union sent to the ministry, Rossiyskaya Gazeta writes. According to the Union, on the 21st week of 2023, wholesale prices for a broiler chicken carcass reached 175-185 rubles/kg, which is 30% higher compared to last year.

This led to an increase in prices for pork half carcasses, the authors of the letter note. Despite the increase in poultry meat production, exports continue to grow, and poultry meat consumption accounts for 45% of the total meat consumption in the country. Retail prices are still low, but this cannot last long, the authors of the letter say. Poultry meat production in our country this year may increase to 5.38 million tons from 5.3 million tons in 2022. But exports are also growing: in 2023 it may increase to 350 thousand tons from 339.7 thousand tons in 2022, NSM notes. The increase in the cost of poultry meat could also be associated with outbreaks of avian influenza. The Rosselkhoznadzor clarified to Rossiyskaya Gazeta that since the beginning of 2023, 45 cases of avian influenza have been registered in 22 regions, 36 of which are in wild birds, 9 in domestic birds.

According to Konstantin Korneev, executive director of Rincon Management, it is impossible to buy frozen meat abroad for 1-2 weeks, because usually the volumes are scheduled in advance. To do this, you will need to get into the program of foreign manufacturers and set aside time for logistics, which can take from three to six months. During this time, the price in the domestic market has already stabilized, the expert noted.

“As for the export duty, it is inappropriate, firstly, in view of the export structure, which is mainly expressed in chicken wings and paws. Or it could be specially adapted products for the Middle East. The presence or absence of these parts on the Russian market does not change the situation with price positioning,” said Korneev. In his opinion, the price situation on the market should soon stabilize, as there is a relationship between the price of poultry meat and pork. If poultry becomes expensive, then pork begins to replace it in the processing segment.

Therefore, the expert believes that the proposed measures do not correspond to the speed of their implementation and development prospects. “Russia has been developing the export of agricultural products for many years, and now it can be brought down. In addition, the current infrastructure of the industry makes it possible to increase the volume of cultivation and processing without creating new production facilities. This can be done through more intensive use of the existing infrastructure,” Korneev concluded.

The head of the National Meat Association, Sergei Yushin, told Rossiyskaya Gazeta that chicken is the most affordable source of protein for consumers. He also noted that chicken prices in Russia remained stable for a long time and their growth was below inflation. Even taking into account the increase in the cost of poultry meat, they remain below world prices. Yushin considers the initiative of meat processors senseless and harmful, arguing that the country has enough of its own chicken.

Wholesale prices for a chicken carcass for the first time since 2014 exceeded the cost of a pork half carcass. However, retail prices for a broiler chicken carcass in chains - members of the Association of Retail Companies (AKORT) have decreased. Igor Karavaev, chairman of the AKORT presidium, said that federal retail chains are not experiencing problems with the supply of broiler carcasses. The average minimum retail price in the second week of May decreased by more than 3% compared to the first week. The average purchase price in the second week of May increased, but was lower than the cost in the wholesale segment.