Thursday, March 10, 2016

Russia heading for meat-industry crisis

The Russian meat and poultry industry is heading into financial trouble, says the Meat Council of the Eurasian Economic Union.

It predicts there will be massive bankruptcies by 2018, eliminating a quarter of the hog producers, 15 per cent of poultry producers and 20 per cent of the meat processing companies.

It says Russians did well when the government banned imports as part of a political spat with Europe over the invasion of Crimea and battles along the Eastern border of Ukraine.

The Russian ban was in retaliation for economic sanctions imposed by Europe, the United States and others.

But now the Russian market has been supplied with domestic meat and poultry, prices and falling and the industry is heading into the down side of the price cycle.