W7 Chicken Update: Russian Poultry Prices Ease Temporarily, Turkish Sector Sees Strong Egg Production

Published 2024년 2월 23일

In W7 in the chicken landscape, in the Russian poultry industry, recent data from Rosstat indicates a temporary relief in consumer prices for eggs and chicken meat in Jan-24, with both experiencing monthly declines. However, prices remain significantly elevated compared to the previous year, attributed to rising production costs, avian influenza outbreaks, and disruptions in global supply chains. The Russian government has implemented measures to stabilize prices, including canceling import duties and facilitating egg and poultry meat imports. Meanwhile, in Türkiye, the poultry sector sees strong egg production, with a notable increase in both MoM and YoY, reflecting sustained consumer demand. Chicken meat production, however, experiences a slight monthly decline but remains relatively stable compared to the previous year.

Short-Term Relief Amid Long-Term Concerns in Russian Poultry Industry

Recent data from the Federal Service for State Statistics (Rosstat) reveals contrasting trends in Russian consumer prices for eggs and chicken meat in Jan-24. Egg prices decreased by 1.8% month-on-month (MoM), offering temporary respite from the substantial 1.6-fold year-over-year (YoY) increase. This surge is attributed to several factors, including rising production costs due to increased feed prices and energy bills, avian influenza outbreaks impacting poultry farm productivity, and disruptions in global supply chains affecting import options.

Similarly, chicken meat prices witnessed a 2.5% MoM decline in Jan-24. However, prices remain elevated by 25.3% YoY. The contributing factors here likely mirror those impacting egg prices, with the added influence of increased demand for poultry meat as a more affordable protein source compared to other options.

Recognizing the significant price hikes, the Russian Government implemented measures to stabilize the situation by canceling import duties for H1-24, facilitating the import of up to 1.2 billion eggs. This initiative has seen participation from Türkiye and Azerbaijan, which have contributed 19.9 million eggs to Russia by February 12. The Russian Government introduced a 140- thousand metric ton (mt) quota for duty-free poultry meat imports in 2024, primarily intended for industrial processing. As of February 14, import permits have been issued for 5.3 thousand mt, with applications submitted for an additional 110 thousand mt.

Strong Egg Production Offsets Declines in Meat in Turkish Poultry Sector

The Turkish Statistical Institute (TUIK) released the Dec-23 poultry production statistics, revealing mixed trends across different categories. Chicken egg production witnessed a notable increase of 3.1% MoM and 6.3% YoY, reaching 1.86 billion units. Cumulative production for the year stood at 22.3 billion units, reflecting a 4.2% YoY growth. This sustained growth suggests continued strong consumer demand for eggs in the Turkish market. Potential factors contributing to this trend include increased purchasing power leading to higher egg consumption and growing awareness of the health benefits of eggs driving demand.

Chicken meat production exhibited a slight decrease of 0.9% MoM, reaching 200.3 thousand mt. However, it remained relatively stable YoY (-0.4%). Cumulative production for the year totaled 2.42 million metric tons (mmt), reflecting a 3.7% YoY decline.