September 3, 2012

Russia's poultry meat production cost up 25%

As the price of poultry in Russia continues to rise together with the very expensive feed, Russia's poultry meat price hit a five-year high with cost of production up by 25% in August this year.

"For the whole of 2011 the average price for poultry was between RUB72-75 (US$2.23-2.32) per kilogramme. The increase in the price of feed forced producers to increase the selling price to maintain positive margins. In fact, most industry representatives noted an acute shortage of poultry in the domestic market. Therefore, the price for the carcass in the European part of Russia reached between RUB92-94 (US$2.85-2.91) per kilogramme, in Western Siberia - RUB95-98 (US$2.94-3.03) per kilogramme.

According to market observers, there are currently no preconditions of reducing the demand for poultry, and therefore the increase in prices may continue, as noted on the web-site of USAPEEC (USA poultry and egg export council).

In the report it was also noted that the rise in prices was also influenced by a decrease in poultry meat production early this year, as well as strengthening of the dollar against the ruble, which boosted the price of imported products and lead to an increase in all prices on the domestic market.

Soy News reported in June, that the price of feed for poultry reached the annual maximum. Compared with the previous month, it increased by 4%. In January this year, the average price per tonne of feed for poultry in Russia was RUB10,631 (US$329). In June it rose to RUB11,253 (US$353.3).