The Ministry of Agriculture proposed to limit the export of poultry meat and eggs

After President Vladimir Putin’s remarks about the rise in price of poultry meat by 27% since the beginning of the year, the Ministry of Agriculture proposed measures to curb price increases. In December, a ban on the export of certain types of poultry meat and edible eggs may be introduced for a period of six months. Broiler carcasses, which are supplied including to Saudi Arabia, may be subject to restrictions, experts say.

Exports of certain types of poultry meat and edible eggs from Russia may be limited for six months. On the preparation of draft relevant regulations of the Ministry of Agriculture reported October 26. The texts of the documents have not yet been published on the portal of legal acts.

The proposals are associated with a significant increase in prices for poultry meat and eggs – by 25.3% and 24% year-on-year, respectively, the Ministry of Agriculture indicates. They attribute the dynamics primarily to a decrease in production volumes in recent months and rising costs against the backdrop of a high dollar exchange rate. This increases the attractiveness of exports compared to supplies to the domestic market and creates a threat to the food security of the Russian Federation, the ministry notes.

Export restrictions, according to the Ministry of Agriculture, should curb the rise in prices for socially important products and prevent shortages.

The Ministry of Agriculture proposed limiting the export of poultry meat and eggs the day after President Vladimir Putin’s meeting with members of the government. Then Vladimir Putin drew the attention of the head of the Ministry of Agriculture, Dmitry Patrushev, to the increase in prices for poultry meat since the beginning of the year by more than 27%. “Why has chicken become so expensive?” – he noted. Dmitry Patrushev explained that there are no economic prerequisites for increasing prices, and manufacturers have already begun to reduce prices. According to data from market participants, as of October 22, the wholesale cost of a broiler carcass in the center was at the level of 210 rubles. for 1 kg versus about 215 rubles. for 1 kg a week earlier. The cost of fillet in the wholesale segment remained at 385 rubles. for 1 kg.

According to data available to Kommersant, exports of poultry meat to non-CIS countries in January-July 2023 decreased by 7%, to 148 thousand tons year on year. More than 78 thousand tons came from Chinaover 30 thousand tons – at Saudi Arabiamore than 6 thousand tons – per Azerbaijan, Vietnam And Uzbekistan. During this period, poultry production for slaughter in the Russian Federation increased by 1.3% year-on-year, to 3.79 million tons. The export of food eggs by Rosptitsesoyuz in 2022 was estimated at 570 million pieces, with domestic production at 46.1 billion pieces.

President of Agrifood Strategies Albert Davleev says that, based on the need indicated by the Ministry of Agriculture to contain prices for socially important products, broiler carcasses and possibly chicken legs may fall under export restrictions. According to him, these products are mainly supplied to Saudi Arabia and neighboring countries. As Mr. Davleev reminds, Belarus previously restricted the export of broiler carcasses for most producers twice to support its domestic market, which also affected the rise in prices for poultry meat in Russia.

ABH Miratorg told Kommersant that they consider the possible restriction of exports a bad signal for manufacturers and investors.

“To reduce prices, it is necessary to create conditions for investment and increase volumes of poultry production, and not introduce export restrictions,” the holding says. Albert Davleev notes that the effect on the domestic market may not be very noticeable, given that more than 50% of poultry meat exports go to China, where by-products are primarily supplied: legs and parts of wings.

Anatoly Kostyrev