Restrictions on the import of hatching eggs from some European countries, introduced by Rosselkhoznadzor due to outbreaks of avian influenza, may have a negative impact on the russian market. As reported by Kommersant referring to the president of Agrifood Strategies Albert Davleev, possible difficulties with purchases, rising prices and other risks.
According to the expert, last year Russia imported 19.7 million hatching eggs, while three-quarters of the supplies were from Canada, France, Germany and Slovakia. Currently, due to avian influenza, the supply of poultry products from a number of regions of some European countries is limited, including Germany and Slovakia. According to RusProdSoyuz, the ban touched 20-30% of the imports of hatching eggs.
The Ministry of Agriculture notes that the restrictions are introduced in accordance with the code of the International Epizootic Bureau. They operate throughout the world and are based on notifications from these countries. Agrifood Strategies argue that russian producers already lack a hatching egg. As a result, they have to switch to other breeds of turkeys. This leads to changes in fattening schedules, feed formulas, the need to reconfigure equipment and other inconveniences. The payback period of poultry projects in the investment phase, which is still not small (from 6 to 9 years), can grow. As a result of last year, Russia produced 227.2 thousand tons of turkey, an increase compared to 2015 exceeded 50%. Leaders are Damate Group and Eurodon Group (their production volumes were 60.8 and 59.9 thousand tons respectively).
Damate Group said that supplies from Slovakia are replaced by supplies from Germany and Italy (two shipments have already been delivered). The company does not exclude the possibility of continuing supplies from these countries. Eurodon Group uses hatching eggs of its own production. Albert Davleev estimated that the cost of hatching turkey eggs in Europe for a couple of months jumped by 10%, and now they cost from 1.2 to 1.3 dollars per piece. In Russia, no one produces them, except for Eurodon, which produced 9.1 million eggs in 2016, of which 3 million were sold to other companies. A source from the Russian poultry factory notes that if the situation does not change, the turkey meat may rise by 15-20% by May. According to another interlocutor of Kommersant, hatching eggs account for as little as 5% to 8% of the cost of producing a finished product, which is not critical. He notes that basically everything depends on the cost of feed.
Source: SoyaNews.
