Russian Federation Poultry and Products Annual 2006

By the USDA, Foreign Agricultural Service - This article provides the poultry industry data from the USDA FAS Poultry and Products Annual 2006 report for Russia. A link to the full report is also provided. The full report includes all the tabular data which we have ommited from this article.

20 September 2006

6 minute read

Report Highlights:

From January-July 2006, Russian poultry imports dropped to 691,300 MT compared to 702,600 MT during the same period in 2005. Domestic poultry production will increase 20 percent in 2006 and is expected to grow another 18 percent in 2007. Consumption of poultry meat is now on rise after a substantial drop following several outbreaks of avian influenza. Poultry prices stabilized with consumption growth but are still lower than a year ago. Domestic poultry producers continue to call for import restrictions reduce competition.

Executive Summary

In the first seven months of 2006, poultry imports dropped to 691,300 tons from 702,600 tons, compared to the same period last year. However, due to higher prices, the value of imports in the first seven months of 2006 totaled $467 million, up from $441.1 million a year earlier.

Meat and poultry production increased 3.9 percent to 3.7 million metric tons from January - July 2006, in comparison with the same period in 2005. Broiler production in 2005 was adjusted in accordance with new poultry production statistics. Production in 2006 will increase 20 percent, and is expected to grow 18 percent in 2007. Turkey production is also growing as new turkey facilities are being constructed.

No avian influenza cases have been reported in Russia for more than four weeks, according to Russian Service for Veterinary and Phytosanitary Surveillance officials. Consumption of poultry meat in Russia is on the rise after a drop following much-publicized outbreaks of avian influenza at the end of 2005 and in the beginning of 2006. Poultry meat consumption increased 4 percent in June 2006 compared to the previous month.

Production

Meat and poultry production increased 3.9 percent to 3.7 million metric tons from January - July 2006, compared to the same time period last year. Egg production increased 2.8 percent to 22.6 billion eggs.

Broiler production in 2005 was adjusted in accordance with new poultry production statistics. Production in 2006 is expected to increase 20 percent and will continue to grow an additional 18 percent in 2007. Turkey production is also growing as new turkey facilities are being built and because turkey meat prices are much higher than broiler prices in Russia.

A new system of poultry production has been introduced in some regions of the Russian Federation to overcome growing agrarian crises in those regions. Currently, a mini-poultry facility equipped with the up-to-date European equipment is being constructed in Uliyanovsk oblast. One person is servicing the mini-farm as it is completely automated and computerized beginning from climate support to manure removal. It is expected to produce about 700 metric tons of poultry meat annually. Broilers will be slaughtered at 42 days of age weighing in at an average of 2.5 kilograms. The expected weight gain is 60 grams per day. Twenty-five sets of such mini-farms will be built in the region. The Ministry of Agriculture is planning to apply this approach throughout Russia.

Consumption

Consumption of poultry meat in Russia is on the rise after a drop following much-publicized outbreaks of avian influenza at the end of 2005 and in the beginning of 2006. Poultry meat consumption increased 4 percent in June 2006 compared to the previous month. According to the International Poultry Development Program and the Russian Poultry Union, 94 percent of Russians regularly consume poultry.

According to their research, only 12 percent of Russians reduced consumption of poultry meat following avian influenza outbreaks and only 3 percent stopped eating poultry altogether. At the same time, 6 percent of Russians said they had increased poultry intake over the last year. An overwhelming number of those polled said they were fully confident in the safety of poultry meat sold in Russian stores. A total of 69 percent of the respondents said they had begun paying more attention to preventive measures against avian influenza while 40 percent said they closely observed the necessary procedures for preparing and storing poultry meat.

Avian influenza outbreaks took place in Russia in July 2005, which led to a significant reduction in poultry meat consumption. The main reason for the sharp drop in consumption following these outbreaks was the way that the Russian media ran with it. Some 80 percent of those polled said Russian newspapers, radio stations and television networks devoted too much attention to the outbreaks. Positive trends have returned to the poultry meat market as a result of perceived strengthening of veterinary control and a significant drop in the number of publications devoted to avian influenza. The number of media reports on avian influenza in June 2006 had dropped dramatically compared to March 2006, which is considered to be the “peak period” of the avian influenza scare. Rosptitsesoyuz President Vladimir Fisinin, who also serves as First Vice President of the Russian Agriculture Academy, is quoted as saying that, “the data received proves that the crisis caused by avian influenza has been overcome and the situation has been fully resolved.”

Russian consumers are not used to eating turkey meat since there was no domestic production until recently. Many companies started raising turkeys and they have been advertising their product heavily in order to attract customers. This advertising campaign has been a success. Turkey meat prices are high (250 rubles/kg of turkey breast vs. 130 rubles/kilo of broiler breast) compared to chicken prices, but local producers are doing very well selling their products.

Trade

According to the Russian Federal Customs Service (FTS), in the first seven months of 2006 compared to the same period last year, poultry imports dropped to 691,300 tons from 702,600 tons. However, due to higher prices the value of imports in the first seven months of 2006 totaled $467 million, up from $441.1 million a year earlier. Russia imported 10.9 percent more red meat in the first seven months of 2006 compared to the same period in 2005. According to FTS figures, 681,700 tons of meat valued at $1.214 billion were imported during the first seven months of 2006, compared to 557,600 tons worth $778.1 million a year earlier.

Poultry prices

Wholesale poultry prices decreased year-on-year basis in August 2006 for both domestic and imported product, down 3 percent for domestic frozen breasts to almost 30 percent on imported frozen carcasses. After the Russian Federation took counter measures (see below), prices started rising in May 2006 before once again going down in August. Recently, domestic producers have been competing more and more with each other instead of with their traditional adversaries, poultry importers.