Russian exports to China are “booming” to the point that China could become the top importer of Russian poultry, Cherkizovo Chief Analyst Andrew Dalnov said.
Speaking during a workshop on the countries’ bilateral relations, Dalnov presented his outlook on the poultry trade.
“Poultry supplies to China are booming,” said Dalnov. “In 2019 and 2020, Russian poultry exports to this country are expected to total some 50 kilotons and over 100 kilotons, respectively.”
According to the Cherkizovo analyst, China may surpass Vietnam and Ukraine as the largest importer of Russian poultry products this year.
With annual growth rates at 2–3%, Russia's poultry market has almost reached saturation. Estimated to account for 5–10% of the overall output, halal products remain a niche segment domestically, making exports even more attractive to halal and other poultry producers, he added.
According to Dalnov, both economies received a major boost when China approved some Russian companies as exporters in early 2019. The Asian country sources more than 70% of its poultry imports from Brazil, which Dalnov cited as a serious biosecurity risk.
Up to this date, six farms of Cherkizovo Group have been granted the right to export poultry products there – Mosselprom and Petelinskaya poultry farms (Moscow Region), Vasilyevskaya poultry farm (Penza Region), Lisko Broiler (Voronezh Region), Belaya Ptitsa Kursk (Kursk Region), and Tambov Turkey.
The workshop was attended by representatives of Russian and Chinese government agencies, as well as employees and executives of major industry associations, including the Russian Grain Union, National Union of Poultry Farmers, National Meat Association, Russian Fruit and Vegetable Union, Potato Association, and All-Russian Union of Oils and Fats (MZHSR).
Demand for poultry in China has also increased as the country’s pork supply has diminished with the outbreak of African swine fever (ASF).
Cherkizovo, whose brands include Petelinka and Pava-Pava, is Russia’s largest poultry company. Other top poultry companies in Russia include Prioskolye, GAP Resurs, Bezrk-Belgrakorm and Severnaya.