Russia, one of the world’s largest importers of chicken until 2001, will be exporting to China later this year.
According to bilateral agreements with Russia, the Chinese have opened their market doors to chicken meat produced in Russia since 2019. The devaluation of the ruble against other currencies has improved the initiatives of the country’s producers in developing export markets.
But it should not be forgotten that as the national currency depreciates, Russian imports of items such as food additives, veterinary drugs, and the like will rise in price. An issue that could overshadow the production of chicken meat in this country.
According to the latest estimates by the USDA, the country will produce more than 4.5 million tons of chicken meat by 2020. Also, according to published statistics, the country will import less than 210,000 tons of chicken meat by the end of 2020. 2% less than the amount recorded in 2019. However, Brazilians are still one of the country’s most important suppliers of chicken meat.On the other hand, it seems that by 2021, this country will become an absolute exporter.
Finally, it should not be forgotten that large multinational poultry companies creating complex value-added chains, presence in different parts of the world, and access to high financial resources.
Under such circumstances, it will be difficult for Russia and other countries to compete with these companies.