October 25, 2022


Poultry sector in Russia affected by sanctions



The poultry sector in Russia has been hard hit by sanctions following Russia's invasion into Ukraine, affecting the industry's sourcing of imported feed additives, egg-hatching equipment, packaging and labels, bne IntelliNews reported.


Russia was initially a net importer of poultry, but has since been able to establish a strong domestic poultry industry and diversify into untapped markets like turkey and duck meat.


Russia is now entirely self-sufficient in basic foodstuffs like poultry and eggs. 2019 saw a swift consolidation of the Russian poultry market prior to the lucrative opening of the export market to China.


However, since Russia is heavily dependent on imports in this sector, post-Ukraine invasion, Lyubov Savkina, commercial director of the Russian Feedlot agency said Russian poultry farmers face some problems with the supply of hatching eggs.


The majority of the work must be done in the turkey sector because there aren't nearly 50 million hatching turkey eggs available each year, according to Savkina.


Vladimir Fisinin, the president of the Russian Poultry Union, estimated that Russia produces 4.2 billion hatching eggs each year and imports about 300 million. However, the breeding stock is another significant area of vulnerability, necessitating the rerouting of logistics to China, India, the UAE, and Brazil.


Russian authorities intend to partially lessen the poultry industry's reliance on imported genetics by establishing a new breeding facility in the Moscow area by 2023 that will be focused on the Smena-9 crossbreed.


Sergey Yushin, executive director of the National Meat Association, said companies are working essentially round-the-clock to adjust to the new circumstances, adding that it is no longer about the price at which to buy this or that, but rather being able to buy it, in principle.


Since up to 80% of the installed equipment on Russian poultry farms is thought to be foreign-made, Russian poultry farmers will also need to break their reliance on it. The impact of this will be delayed because the majority of the equipment was installed within the last five to six years.


Consumption-wise, declining purchasing power and rising inflation are likely to result in lower protein intake.


-      bne IntelliNews

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