latest package of sanctions, trucks from Russia and its ally, Be- larus, have been prohibited from legally entering any EU member state. New transport restrictions promise to further narrow the number of options under which European goods can enter the Russian market. Against this background, the Russian feed additives market also lacks stability, noted Sergey Mikhnyuk, executive director of the Russian National Feed Union. “This is because unfriend- ly countries are restricting the passage of cargo to Russia, in- cluding feed additives. Most batches have been halted in the transshipment ports of Rotterdam, Hamburg, Brugge, and so on,” Mikhnyuk said, adding that feed additives are now being supplied by train from China but the capacity and rate of sup- ply via this route is not enough to meet current demand. “Companies are working almost around the clock, trying to adapt to the new conditions. It is no longer about the price at which to buy this or that, but about being able to purchase it, in principle,” said Sergey Yushin, executive director of the National Meat Association. In the long run, however, Russian poultry farmers would need to overcome their dependence on imported equipment. Lari- sa Kuvshinova, regional manager of Facco Rus estimated that 80% of the installed equipment on Russian poultry farms was imported. However, most of it had been installed in the last 5
or 6 years and is fairly new, and thus the level of wear and tear level is still low.
Consumption under pressure The economic crisis is currently eroding the Russian popula- tion’s purchasing power and threatening to curb protein con- sumption. Since its invasion of Ukraine last month time indi- cators suggest that the Russian economy will likely contract by 12% this year, as reported by the London-based consul- tancy Capital Economics. Against this background, consumer spending is likely to take a hit. Renaissance Capital analysts predict that inflation will peak at 24% this summer. This is a major headache for the Russian authorities whose measures to attempt to control prices have had the opposite effect on items such as sugar. Russian government agencies have threatened companies that increase food prices too sharply with penalties. However, Russian poultry farmers are warning of a significant rise in production costs leaving them with no other option than to change prices. The price for poultry and eggs on the Russian market is rising, influenced by bank interest rates, the cost of spare parts, feed ingredients, containers and packaging, a spokesperson for the Tyumen-based poultry farm Borovskaya told the local newspaper Kommersant. Yuri Vunder, managing director of
▶ POULTRY WORLD | No. 5, 2022
Vladimir Fisinin estimated that Russia produces 4.2 billion hatch- ing eggs, im- porting roughly 300 million units.
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