April 26, 2007

 

Russia forges ahead with expansion in poultry and pork production
 

 

Russia's National Priority Project to expand pork and poultry production is going well, according to a Russian Ministry of Agriculture report translated by the USDA.

 

According to Minister of Agriculture Aleksey Gordeyev in public remarks on February 14, total investment during 2006 in the agroindustrial complex (including production agriculture, processing and food manufacturing, and aquaculture) was 160 billion rubles (US$6.2 billion), up 55 percent over the 2005 level.

 

Russia built or renovated 1,400 livestock facilities in 2006.

 

Almost 1,195 farm enterprises in the Project received credit resources in the amount of 53.2 billion rubles (US$2 billion).

 

Russia's livestock production ( including poultry) in 2006 rose 4.6 percent to 7.9 million tonnes. Production improvement was most active in Belgorod province, where meat production rose 34 percent last year to 394,100 tonnes while Lipetsk, the province with the second highest increase, rose 18 percent to 124,700 tonnes.

 

The decline in milk production was halted in 2006 and decline in cattle numbers slowed, while inventories of other livestock species grew.

 

To raise the genetic potential of livestock and to improve their housing conditions the Project envisions purchase of modern equipment and brood livestock.

 

The project identified poultry and hog production as the high efficiency sectors and hence has devoted more resources towards the production of these two meats.

 

In 2005 and the first half of 2006 economic conditions for development of swine production turned out well with profit margins of 18-20 percent.

 

The profitability evoked active construction of new and renovation of existing commercial complexes. The Project saw 144 new hog complexes slated for construction through the use of funds from external investors and regional sources.

 

For the period 2002-2006 poultry production enterprises have used long-term loans to replace equipment amounting to more than 26 billion rubles (US$1 billion), of which 20 billion (US$780 million) were provided through the Project.

 

Annual private investment in poultry production is estimated at US$200-250 million dollars.

 

Stability in the customs tariff policy on meat and equipment import for the livestock sector is expected.

 

For 2007 the Project also includes additional support for commercial aquaculture and more credit for brood livestock acquisition, and funds for livestock production machinery. Sales of machinery is expected to be up 10-15 percent this year.

 

For the full report, please click here