Russia could boost poultry production to 4 million tonnes by 2020, while exports could rise to 500,000 tonnes, industry official says; production will rise by 350,000 tonnes in 2012

Nevin Barich

MOSCOW , October 13, 2012 (Interfax Information Services) – Russia could boost poultry production to 4 million tonnes by 2020 (slaughter weight) and exports may climb to 0.5 million tonnes.

"Rosptitssoyuz [the Russian Union of Poultry Farmers] has compiled and submitted to the Agriculture Ministry a development program for the industry, which envisages reaching 4 million tonnes of poultry production by 2020," said the president of Rosptitssoyuz and academician at Moscow-based agricultural sciences institute Rosselkhozakademia, Vladimir Fisinin.

Production will grow by 350,000 tonnes in 2012 to 3.5 million tonnes, he said. Growth was initially forecast at 300,000 tonnes, he added. Poultry production (live weight) climbed 15%, or by 383,000 tonnes, in January-September 2012 and egg production increased by 4%, or by over 800 million eggs.

"Thus, we will completely cover our consumption on the domestic market and can confidently talk about expanding exports to 0.5 million tonnes by 2020," Fisinin said. He predicts that exports of Russian poultry products will increase to 50,000 tonnes this year, compared to 40,000 tonnes in 2011. In addition, Russia will export over 75 million eggs in 2012.

Russian poultry industry policy aims to give consumers processed products. "We have factories that produce up to 320 types of poultry products and we plan to develop this area," he said.

Exports are difficult at the moment, Fisinin said. "We had hoped that the European Union would buy, that joining the WTO would help this, but they are cautious, although now we can supply almost 15 types of egg products as well as poultry," he said.

Development of the country's poultry industry will largely depend on the level of purchasing power. "We are seriously concerned about grain prices, they are unjustified and speculative," he said. "If t0his time last year wheat cost 6 rubles per kilogram now the price is somewhere above 11 rubles." The rise in the price of grain means the price of a kilogram of broiler meat has increased 12 rubles and the price of ten eggs has gone up by 6.75 rubles.

Poultry prices went up 13% in January-September, the Russian Statistics Service said. This is the highest growth among the meat group with pork going up 4% and beef - 5%.

The commodity grain intervention program needs to include major poultry companies, Fisinin said. "For example, Leningrad region produces 3 billion eggs per year, which is 15% of Russia's production, and over 200,000 tonnes of poultry meat, which is 9%, while grain production in the region is just 0.1% of the total," he said. To deal with major fodder problems in poultry and pig farming, Fisinin reckons fodder grain funds should be set up. "We do not need to feed the birds food wheat," he added.

Agriculture Minister Nikolai Fyodorov has asked the relevant department to specify the structure of the crop area by December 25, Fisinin said.

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