What's New ? - 2019

What's New ? - 2019

Russia: first poultry cargo to China since the Soviet era

25 May, 2019

For the first time since the Soviet era, Russia is sending poultry to China. The market for cheaper alternatives to pork is opening up as analysts say China could lose 30% of its pigs to African swine fever. The move could be a big step forward for Russia’s poultry industry, which wants to become a major supplier to more countries. It’ll likely take time to seriously challenge major shippers like the U.S., Brazil and European Union, but last month’s sale of chicken wings could be a warning of more competition for exporters hoping to send more to China. After doubling poultry output in the past decade to rank as the No. 6 producer, Russia may already be able meet some of China’s needs. 
Russia is almost self-sufficient in poultry. Russia still imports a bit more chicken than it exports. Miratorg Agribusiness Holding sent 54 tons of wings to China in April, and the Russian National Meat Association said the country could send tens of thousands of tons there within a couple of years. China has approved about 30 Russian companies to supply chicken meat. The country’s poultry imports will jump 68% to 575,000 tons this year.Shares of America’s Pilgrim’s Pride Corp. and Brazil’s JBS SA surged at least 84% this year amid expectations of more business. Russia, which two decades ago was the top poultry importer, mainly exports to other Asian countries and Africa. Domestic output has the potential to rise by several hundred thousand tons if all existing capacity is used. That could cover the needs of a major importer.