International Egg and Poultry Review: Russia

RUSSIA - This is a weekly report by the USDA's Agricultural Marketing Service (AMS), looking at international developments concerning the poultry industry. This week's review looks at the poultry situation in Russia.
calendar icon 8 December 2010
clock icon 3 minute read

According to reports, Russia has announced plans to reduce its tariff-rate quotas (TRQ) in 2011. It plans to cut the 2011 TRQ to 350,000 MT from the original 600,000 MT. Due to chlorine issues, 150,000 MT of 600,000 MT of poultry meat allocated to the US in 2010 was reallocated to other countries. The US is expected to only fill 300,000 MT of its quota by year end. This latest move is another blow to the US poultry industry after finally resuming trade with Russia in July 2010 after months without trading.

This is another effort to protect and support Russia’s domestic poultry production. It continues to support its domestic production with TRQs, loan subsidies (favoring large producers), federal development programs (i.e. Development of Poultry to 2012 and to 2018-2020), increased government purchases of chicken meat over beef, direct financial aid to drought-stricken farmers, an export grain ban, fertilizer subsidies, monies for spring crops, among other means.

Russia recently extended its 5 August 2010 grain export ban (Resolution #853) to 1 July 2011. The new resolution will exclude wheat and rye flour; however it will temporarily ban the export of wheat and meslin, barley, rye, and corn from Russia. Recently Russia reported its grain crop in 2010 will be about 60 million metric tons (MMT). As of October 2010, Russia had finished harvesting 97 per cent of its total crop with a reported 62.3 MMT being harvested from 32.9 hectares. According to Russian officials the country will be able to meet its domestic demand with the current harvest and carry-over stocks. Farmers have also been encouraged to sow another 25 per cent for spring crops to help meet demand. Winter sowing was mostly complete by late October with 4 million less hectares reported from 2009.

Broiler production accounts for 87.5 per cent of Russia’s total poultry meat and is expected to grow in 2010 (+12 per cent) and 2011 (+8 per cent). Slowed expansion rates are expected due to higher feed costs associated with this summer’s drought, as well as reduced profits to producers. Broiler meat imports declined 66 per cent through June 2010 with expectations of reduced imports in 2011. Russia is primarily supplied by the US, EU, Brazil, Argentina, Canada, and Paraguay. Turkey production accounts for 3.8 per cent or Russia poultry meat production and is forecast to be 45,000 MT in 2010 and 55,000 MT in 2011. Turkey meat imports fell 28 per cent through June 2010 with main suppliers being the EU, Brazil, US, and Canada.


Further Reading

- You can view the full report by clicking here.
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