January 23, 2009

Russia's ready-to-cook poultry is expected to increase this year as stable growth of raw meat costs and finished products were seen in 2008.

However, the global economic downturn as well as freight cost reduction costs brought down prices of meat and poultry. The currency drop of some national currencies, problems with procurement crediting and demand decline have also contributed to low prices.

Price structuring of ready-to-cook products remains still, than the one of raw materials, and as a result it reacts on price fluctuations in foreign markets more slowly. Moreover, components other than those related to raw materials, such as significant costs for marketing, play a very important role in pricing structure of this category of goods.

Brazil is the leading supplier of ready-to-cook poultry to Russia followed by France and Germany. European companies, on the other hand, offer chicken ready-to-cook products at higher prices (US$4.40-US$4.90 US dollars per kilogramme).