World meat industry news

The Ministry of Agriculture forecasts that poultry meat production this year will remain at last year’s level, a source familiar with the ministry’s letter to the government told Interfax. It was prepared as part of the implementation of President Vladimir Putin’s instructions following a meeting with members of the Cabinet on October 25.

In 2022, the production of chickens for slaughter in live weight on all farms amounted to just over 7 million tons, which is 292.2 thousand tons (4.3%) more than in 2021, the document recalls. In agricultural organizations, production increased by 307.8 thousand tons (4.9%) and reached 6.5 million tons. According to the Ministry of Agriculture, the level of self-sufficiency in chicken meat, including food by-products, in 2022 was 103.8%. In the first half of this year, agricultural organizations produced 3.2 million tons of chicken meat (for slaughter in live weight), which is 1.6% (52.4 thousand tons) more than last year.

Informing about the measures being taken to stabilize the situation on the chicken meat market in conditions of increased demand and rising prices, the Ministry of Agriculture reported that an agreement had been reached with market participants on a rapid increase in production volumes. In addition, a decision was made on the advisability of introducing a tax incentive on the import of certain types of chicken meat into Russia in the amount of up to 160 thousand tons in 2024.

The Ministry of Agriculture also reminds that state support measures have been developed to increase the production of eggs and chicken. They are aimed at increasing the capacity of poultry farms as part of modernization, technical and technological renewal of existing production, and increasing their biosafety. In addition, a decision was made to expand the areas of preferential lending for poultry production. According to the ministry, the measures taken will help attract more investment in poultry farming.

At a meeting held on October 25, Putin drew attention to rising chicken prices and recommended that the government respond to the market situation in a timely manner. According to him, “the government must act quickly using known methods, including through imports from its closest neighbors.” According to Rosstat, from the beginning of the year to December 13, chicken prices increased by 29.6%, but in the last two weeks they began to gradually decline.

The fact that by the end of 2023, the production of eggs and chicken will remain at the level of 2022, Vedomosti wrote in November with reference to data from the Rosptitsesoyuz. According to the organization, over the 10 months of 2023, egg production increased by 2.3% to 31.7 billion pieces, chicken production by 0.2% to 5.3 million tons in live weight. At the same time, in recent months there has been a slowdown in production growth, the union noted.

Analysts believe that the reason for this may be outbreaks of avian influenza at enterprises, which leads to a reduction in production. In 2023, according to Rosselkhoznadzor, outbreaks of the disease were recorded at six poultry farms. Another reason was the low profitability of chicken and egg production for several years, which did not allow the implementation of new investment projects.