Russia Expanding Broiler Output

MOSCOW - Feb 17/04 - SNS -- Russian broiler meat production is forecast to continue to rise 11% from 560,000 metric tons (MT) in 2003 to 620,000 this year.

This is the case even though high feed costs due to the poor Russian grain harvest of 2003 will reduce production growth and temporarily subdue the high level of industry investment, argues the U.S. agricultural attache here.

Though feed supplies are short and feed grain prices are high, modern poultry facilities continue to increase production. These efficient producers also continue to buy low efficiency poultry farms, which remain plentiful in many parts of Russia, and add new management techniques, new equipment, and new production technologies.

Increasing poultry prices have helped the efficient producers remain profitable, despite grain prices, and permitted further expansion. An additional factor for investment remains the strong earnings for companies in the natural resource export sector, several of which own and support poultry and livestock subsidiaries.

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