World meat industry news

The Russian Ministry of Agriculture, in addition to introducing preferential investment lending for broiler producers since December last year, this year plans to extend this mechanism also to egg producers. As Interfax-Russia reports, Deputy Head of the Ministry Elena Fastova spoke about this.

According to her, such a support measure is already being “worked out as much as possible” so that such categories of livestock farmers can attract similar loans and continue to increase their own production. She explained the need for this type of assistance by saying that the demand for eggs has increased in the country and there is a need to build new complexes instead of existing ones, which are obsolete. As for investment lending to broiler poultry producers, according to the deputy minister, they plan to maintain it until the end of this year. She said that the first loan was issued in December last year, and expressed hope that many more applications will be submitted in the second half of this year. Fastova explained that approximately by that time poultry farmers should prepare projects and carry out the necessary work with banks. We also remind you that other measures are available to Russian producers of poultry meat and eggs: a number of other government support instruments such as subsidies for livestock insurance, compensation for part of the costs of construction and modernization of reproductive units in broiler poultry farming, as well as preferential short-term loans for the purchase of grain, vitamins, amino acids, premixes, meal and other components for feed production.

In addition, Fastova told when “floating” preferential lending to agricultural producers will come into force in accordance with the key rate of the Central Bank, and clarified the details of this mechanism. According to her, this measure will come into effect by February 10. Let us recall that last week the head of the Ministry of Agriculture Dmitry Patrushev reported about it. Priority in this support will go to small farms and personal subsidiary plots, as well as participants in the Federal Scientific and Technical Program for Agricultural Development. The key areas in which it will focus are bakery, flour-milling industry, genetics, breeding, horticulture, dairy farming, milk processing, poultry farming, sheep farming in the North Caucasus Federal District and primary processing of livestock products. Less important sub-sectors of the agro-industrial complex have been identified as the production of grain, agricultural machinery and aquaculture products, the work of elevators, wholesale distribution centers, storage facilities, reception points for pork processing, as well as greenhouse floriculture and product labeling. The deputy minister also expressed concern about the increase in the key rate of the Central Bank, which, we recall, was already 16 percent per annum. She noted that, despite the transition to floating lending volumes, the ministry will try not to slow down its pace and bring it to all necessary recipients.