Russia at risk of facing serious poultry meats deficit

2021-03-04

According to the Rosptitsesoyuz (Russian Poultry Union), due to the termination of the supply of hatching eggs from the Netherlands, a shortage of chicken meats has arisen in Russia. The supply interruption was caused by an avian flu epizootic in the Netherlands. In January, chicken production in Russia decreased by 6.4%.

Many European countries are experiencing a deficit in the supply of eggs production and egg hacthing. These problems are also caused partially by the fact that China has begun actively develop poultry farming and as a result, the cost of hatching eggs increased from 21 to 50 euro cents per piece.

The consquences of this development of events was naturally, an increase in prices for chicken meat in Russia. By February 24 compared to the end of December, chicken prices increased by 6.2%. The rise in the cost of eggs has its roots in the rise in feed prices, and the reduction in livestock due to bird flu. Naturally, the increase in the cost of food items will hit, first of all,
the poorest strata of the population – pensioners and students. The bulk of workers will also suffer, especially considering that half of the meat consumed in Russia is chicken.

This state of affairs has become a natural result of the development of poultry farming in Russia under current market conditions. Poultry farming gives great benefits, the funds invested in this industry pay off quickly enough and give big profits. At the same time, it is not even necessary to create a complete production chain – as eggs or chickens are purchased in other countries. This gives an even greater benefit, because you do not need to invest in creating the production of hatching eggs, you do not need to purchase breeding chickens. However, the downside of this approach is the almost complete dependence of the industry on foreign suppliers. At critical and crisis moments, such dependence turns out to be in the most negative way, especially for the most dependt – the working class citizen.

Of course, poultry farms in the Russian Federation will not stop, since not only Holland supplies hatching eggs. On the contrary, Russian producers of eggs and chicken meat have an opportunity to increase their income. The created deficit, according to the laws of the market, will lead to an increase in prices. This will affect the final prices for the consumer and hit their wallets. As a result, the bird flu will bring even more wealth to businessmen, and new losses to workers.