Russia's poultry empire to face a difficult 2009
Owing to the financial crisis, Russia's mega poultry production investments totalling more than RUB8 billion may be put on hold.
The other involves the expansion of poultry plant Sinyavinskaya whose first three poultry yards with capacity of 750 thousand heads are to be put into operation this week. This project value is RUB800 million. In total, six new state-of-the-art poultry yards will be built at Sinyavinskaya costing a total of about RUB3 billion.
Andrey, Sinyavinskaya's commercial director admitted that 2009 will be difficult for poultry plants as it may cut prices for their products, thus affecting other players in the market. In addition, costs for egg and chicken meat production will climb, as grain and feed prices are seen to go up.
Another industry insider said terms of investment for projects' implementation could also be postponed.
US$1=RUB27.643 (Dec 18)