Russian poultry meat imports in 2011 lowest in 10 yrs, but no mkt shortage - IAMS
MOSCOW. Jan 13 (Interfax) - Russia's poultry meat imports last year were its least for the last ten years, but there was no shortage of the product on the market, the Institute for Agrarian Market Studies (IAMS) announced.
Russia imported 390,000 tonnes of poultry meat in 2011, 40% less than the year before. Nevertheless, there was no shortage as the sharp cuts to import quotas in 2011 prompted the country's domestic poultry production sector to grow and expand [15% by the early figures], IAMS experts say.
That growth was achieved with the expansion of existing poultry farms and the launching of new complexes. "As a result, there developed on the domestic market a large amount on offer that domestic demand was unable to meet," the experts say. "This compels companies to lower prices, which cuts into revenues." In a situation like this, domestic producers see an out in deeper meat-processing, consolidation, and developing export potential, they say.
IAMS predicts that increased competition will take a bit out of poultry-farming's profitability.
Summing up last year's outcomes, the IAMS experts note a 6% growth in the production of hogs (slaughter weight) to 2,470,000 tonnes, but an 8% drop in beef production to 1,580,000 tonnes.
Among the particulars of last year, the experts identify the threat of the spread of African swine fever and the new game-rules associated with Russia's accession to the World Trade Organization.
This year's poultry meat import quota has been set at 250,000 tonnes, that for frozen ground meat at 70,000 tonnes, for frozen ground turkey at 10,000 tonnes. Starting when Russia officially becomes a WTO member, regardless of type of poultry, it will be 100,000 tonnes.