US poultry sector eyeing expansion in African and Asian markets

The US poultry sector is looking to expand markets in Africa and Asia, as top market Russia strives to be self-sufficient in poultry meat.

Russia said it is aiming to become self-sufficient in poultry meat and pork in two years, and to become an exporter.

While Russia may take a longer time to achieve that goal, the US$55 billion US poultry sector must develop new markets and boost exports to existing markets to offset eventual reductions of shipments to Russia, according to industry experts.

As a result, US companies are moving to expand exports to African nations such as Angola, Ghana and Tanzania, as well as to China, said Toby Moore, spokesman for the USA Poultry and Egg Export Council.

Russia will continue to slow imports as it boosts domestic production, and it could take eight to 10 years before the country could become self-sufficient in meat, said Rich Nelson, Allendale Inc's director of research.

Nelson said the industry needs to work harder with markets such as South Korea and Taiwan, where volumes shipped there had decreased.

Russia's goal of self-sufficiency will be easier to reach if domestic demand drops, but the country's meat production may also slow down.

It depends a lot on the economy, said Moore, adding that while Russia will remain as a key market, industry players have resigned to the fact that the country will become less important as a major customer in the future.