RUSSIAN POULTRY MANUFACTURERS FIND THEMSELVES IN AN AWKWARD SITUATION – STATISTICS SHOW THAT THEY ARE CLOSE TO FALLING INTO THE TRAP OF OVERPRODUCTION.
As it turns out, the capacities of Russian poultry farms already exceed the domestic demand for poultry (mostly chicken, of course). One of the main reasons for that was, of course, the crisis which led to the reduction of the effective demand and the consumption of chicken and eggs.
On the one hand, this is actually not so bad because the import substitution in the poultry industry has proved to be real and not just a slogan. This reality, however, is quite harsh for the poultry manufacturers, because in order to develop, modernize their production, and reimburse their loans, they not only must not reduce but increase the production volume of poultry and eggs. And here they have only one way out – they have to find countries, except Russia, to which they can export their products.
This is not so simple, of course, because no one really needs Russian chickens, but Russian manufacturers have a chance to get there and attract customers. Otherwise, the industry may face a number of bankruptcies, mergers and acquisitions, which is not good for the manufacturers and the entire industry, not to mention the regional authorities, because any processes like that may lead to an increase in social tension.
For this reason, the companies must move from overproduction to profitable export through the cooperative efforts with the authorities, otherwise, by the next fall, some of the poultry farms in the North-Western Federal District may disappear.