Feed price hike prompts record prices for Russia’s poultry meat
In August this year (2012) the recorded price of Russia’s poultry meat hit a five year high. Since last year, the cost of poultry meat production rose by 25%. One of the main factors influencing this trend was very expensive feed. And given that the price of fodder in Russia is continuing to rise, the hike in the price of poultry will also continue.
“For the whole of 2011 the average price for poultry was between 72-75 rubles per kg (US$ 2.26-2.35). 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 92-94 rubles /kg (US$ 2.88-2.95), in Western Siberia – 95-98 rubles / kg (US$ 2.98-3.07). 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.
Soya 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 10,631 rubles. (US$ 333.8), In June it rose to 11253 rubles (US$ 353.3).
