World meat industry news

Meat and poultry rose in price in stores last year by only 2.73%. But it is getting more and more difficult for producers to keep selling prices. The weakening of the ruble, rising prices for grain and imported feedstock have already led to an increase in production costs by 15-20%. And feed additives, which are purchased mainly in China, have almost doubled in price.

According to the National Fodder Union, there was a sharp jump in prices for amino acids at the end of 2020 and the beginning of 2021; for some, the increase was almost twofold. First, the prices of corn as the main raw material for the production of amino acids have increased. Secondly, due to the second outbreak of COVID-19 in China (the country is the largest producer of amino acids) supply chains are disrupted. One of the ports, Dalian, was closed for several days. One of the largest amino acid factories was temporarily closed due to the virus, which led to a drop in production, created a shortage in the market and caused prices to rise.

"The measures taken to regulate the export of oilseeds and grain crops, in particular, the introduced export duties, will help to level the growth of feed costs and reduce the cost of production of poultry products," Sergei Lakhtyukhov, General Director of the National Union of Poultry Breeders says.

But a noticeable drop in grain prices is unlikely to be expected, says Albert Davleev, president of Agrifood Strategies. According to him, the price of pork is going up regardless of the price of grain, and there is tension in the poultry market due to the lack of hatching eggs. Last year, broiler production decreased compared to 2019, and the growth in poultry meat was only due to turkey.