World meat industry news

Selling prices for turkey showed minimal increases in the second half of 2023 compared to other meat and poultry products, the National Turkey Producers Association said.

Thus, according to Rosselkhozbank analysts, whose data are presented in the release, in October last year the average price of broiler chicken from producers increased by 51% compared to the wholesale price for it in October 2022 - from 143 to 215 rubles per kg. The same increase of 51% was shown by the cost of pork ham. The selling price for it over the year increased from 226 to 342 rubles per kg.

“At the same time, the increase in average prices for turkey products was almost three times lower and amounted to only 13.9% - 270 rubles per kg in 2022 versus 307 rubles per kg in 2023. At the same time, turkey-breeding enterprises were operating at full capacity, and product inventories in producers’ warehouses in recent months were practically zero,” the association said.

Lower prices for turkey have helped curb the rise in the cost of other types of meat - beef, pork and lamb, the association believes.

Cost growth

At the same time, the cost of turkey production continued to rise in 2023. On average, it increased by 13–15% compared to 2022.

The increase in production costs was caused by a 28% increase in wages, as well as a 27% increase in the exchange rate of the dollar and euro, for which almost all equipment, spare parts and consumables for the production of turkey meat are purchased. The increase in the cost of logistics services has led to an increase in the price of these materials by 40–60%.

Veterinary vaccines have risen in price by an average of 17%. Some items have doubled in price. Hatching eggs have become 27% more expensive. Prices for premixes increased by 22%, and the cost of soybean meal increased by 20%. “The situation in the processing sector does not look any better: spices, functional additives, crackers, flavorings have become more expensive - an increase from 9 to 71% was noted, and an average of 17%. Here we can add a significant increase in tariffs for electricity (+ 13%) and gas (+ 12%),” the association commented.

Need government support

Turkey farmers believe that in the current situation of rising production costs, a state business support program is needed. “Turkey producers propose to return the program, which will increase the production of domestic turkey meat almost 7 times - from 48 thousand tons in 2010 to 330 thousand tons in 2020. The program should be comprehensive and provide for the simultaneous growth of the material base for the production of all necessary components - veterinary drugs, feed additives, equipment and consumables, as well as a number of compensatory measures to reduce the negative impact of rising tariffs on goods and services,” the association believes.

The launch of this program will increase turkey production volumes to 650 thousand tons by 2030, experts predict.