February 16, 2006

Russia's poultry production to rise 15 percent in 2006

Russia's poultry production increased 15 percent in 2005 and is predicted to grow by an additional 15 percent in 2006 as investors continue pouring money into the sector. According to USDA's Feb 13 report on Russian poultry and products, 87 percent of total poultry meat production comprise of broilers.

Poultry currently makes up 35 percent of the total Russian meat market. Of this, 35 percent are whole birds, 37 percent are chicken leg quarters and 28 percent are deeply processed product.

Most of Russia's poultry imports are frozen leg quarters from the US. Imports of frozen turkey cuts are declining. However, fresh and chilled turkey imports from Germany are growing.

USDA said Russian farm poultry prices rose 16 percent in December 2005 when compared to December 2004. Processed poultry prices increased by 21 percent in the same time period.

However, since bird flu outbreaks were first reported in Russia, consumers have bought less poultry. This has forced poultry producers to lower their prices by about 10 percent in late January 2006. Recent polls have revealed that one of every four Russians buy less poultry now than before the bird flu outbreaks were reported.

For the full USDA report, click here.