July 31, 2008

 

Russia's poultry production to increase by 16.3 percent

   
  

Russia looks set to increase its 2008 poultry production by 16.3 percent to 2.176 million tonnes, said Ivan Obolentsev, chairman of the Russian Union of Industralists and Entrepreneurs Agro-industrial Commission on Tuesday (July 29).

 

Speaking during Russian-US consultations on poultry supplies, Obolentsev said Russian poultry production exceeded one million tonnes for H1 this year, on track with the annual production growth of 16 to 17 percent in recent years.

 

However, Russia still needs poultry imports to support domestic market demand, with 1.3 million tonnes imported in 2007, of which 69 percent came from the US. This year, 1.2 million tonnes are expected to be imported into Russia, mainly from US and Brazil.

 

Obolentsev said imports should be reduced as domestic supply is growing and an increasing volume of imports will lead to oversupply in the poultry market and hurt poultry prices.

 

During the consultations, an agreement was reached between Russian and US officials to lower US quota for poultry imports for 2009 to 750,000 tonnes, a 20-percent drop from last year. The quota will decrease every subsequent year to 500,000 tonnes in 2012.

 

Duties might also be raised for poultry products exceeding the quota. The Russian government is currently considering raising duties to 90 percent of the import value, up from the current 60 percent.

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