Russian egg producers face bankruptcy from feed costs
Five poultry farms in the Krasnodar region in southern Russia have entered bankruptcy proceedings over the last six months. Among them is Krasnodar Poultry which held a 15% share of the egg market in the region.
The company has already been forced to sell 80% of its livestock and completely stopped the production process.
In addition, bankruptcy proceedings have also been entered by the following producers Vityazevskaya Poultry (Anapa), Rus Breeding Poultry Plant (Korenovsk), Raevskaya Poultry (Novorossiysk). All of them were specialised in the production of eggs.
This week, the arbitration court of Krasnodar region also registered the declaration of insolvency from the Poultry farm Tikhoretskaya.
Representatives of the poultry farms say that the problem appeared mostly due to the rising prices of feed, which over the past two years went up by 100%. As a result, the profitability of egg production in the south of Russia is now equal to zero.
Vladimir Mkhitaryan, general director of Poultry farm Novorossiysk, notes that producing eggs is now not profitable at all, and profits can only be found in the businesses that are focused mostly on the production of poultry meat.
