Poultry International - January 2017 - 13

PoultryInternational ❙ 13

both sides. Plentiful chicken meat supply means that
prices are low. Alongside low prices, operational costs
have increased and access to credit has become more
difficult. The result is that margins have decreased.

Benefits of scale
Larger-scale companies are better able to cope
with reduced margins. Many are thought to have seen
profitability decrease last year, but to have nevertheless
achieved an increase in sales.
Not all companies, however, were so lucky. Several
smaller businesses ran into financial difficulties and
were put up for sale. Yet their debt, combined with the
cost of integrating their businesses, meant that buyers
could not be found in many cases.
The leading broiler producers in Russia have preferred to optimize their existing businesses rather than
purchase smaller competitors.
Reports suggest that they have concentrated on raising flock performance and productivity per square meter
of floor space, rather than grow through acquisition. A
similar approach is expected in 2017. There will be little
or no construction of farms or expansion of commercial
farms. Rather, the key players will concentrate on producing more efficiently and their scale gives them more
resources to invest.

Attracting investment
Russia's top poultry companies enjoy not only
economy of scale, but they also represent a more secure
investment than smaller, more vulnerable competitors.
Over the past couple of decades, the Russian poultry
industry has attracted significant government support.
However, with the country now close to self-sufficiency,
the authorities are reconsidering their priorities.
Credit in Russia is generally difficult to access, but
government support may be forthcoming for companies
operating to international standards and able to access
export markets.
Despite a difficult operating environment, Russia's
largest poultry companies are able to continue expanding and gaining market share, but this will be at the
expense of the country's smaller producers. ■
January 2017 ❙ www.WATTAgNet.com


http://www.WATTAgNet.com

Table of Contents for the Digital Edition of Poultry International - January 2017

Poultry International - January 2017
Contents
Editor’s Comment
News
EU poultry production forecast positive over next decade
Top Russian broiler producers grow in tough market
Antibiotic-free poultry’s broader economic implications
Layer nutrition: 12 perennial points of anxiety
Layer nutrition: 12 perennial points of anxiety
8 checks to minimize poultry processing rejects
Products
Marketplace
Advertisers’ Index
Poultry International - January 2017 - Poultry International - January 2017
Poultry International - January 2017 - Cover2
Poultry International - January 2017 - Contents
Poultry International - January 2017 - Editor’s Comment
Poultry International - January 2017 - 3
Poultry International - January 2017 - 4
Poultry International - January 2017 - News
Poultry International - January 2017 - 6
Poultry International - January 2017 - 7
Poultry International - January 2017 - EU poultry production forecast positive over next decade
Poultry International - January 2017 - 9
Poultry International - January 2017 - 10
Poultry International - January 2017 - 11
Poultry International - January 2017 - Top Russian broiler producers grow in tough market
Poultry International - January 2017 - 13
Poultry International - January 2017 - 14
Poultry International - January 2017 - 15
Poultry International - January 2017 - Antibiotic-free poultry’s broader economic implications
Poultry International - January 2017 - 17
Poultry International - January 2017 - 18
Poultry International - January 2017 - 19
Poultry International - January 2017 - 20
Poultry International - January 2017 - 21
Poultry International - January 2017 - 22
Poultry International - January 2017 - 23
Poultry International - January 2017 - Layer nutrition: 12 perennial points of anxiety
Poultry International - January 2017 - 25
Poultry International - January 2017 - 26
Poultry International - January 2017 - 27
Poultry International - January 2017 - 8 checks to minimize poultry processing rejects
Poultry International - January 2017 - 29
Poultry International - January 2017 - 30
Poultry International - January 2017 - 31
Poultry International - January 2017 - 32
Poultry International - January 2017 - 33
Poultry International - January 2017 - Products
Poultry International - January 2017 - 35
Poultry International - January 2017 - 36
Poultry International - January 2017 - 37
Poultry International - January 2017 - 38
Poultry International - January 2017 - 39
Poultry International - January 2017 - 40
Poultry International - January 2017 - 41
Poultry International - January 2017 - 42
Poultry International - January 2017 - Marketplace
Poultry International - January 2017 - Advertisers’ Index
Poultry International - January 2017 - Cover3
Poultry International - January 2017 - Cover4
http://www.poultryinternational-digital.com/201911
http://www.poultryinternational-digital.com/201910
http://www.poultryinternational-digital.com/201909
http://www.poultryinternational-digital.com/201908
http://www.poultryinternational-digital.com/201907
http://www.poultryinternational-digital.com/201906
http://www.poultryinternational-digital.com/201905
http://www.poultryinternational-digital.com/201904
http://www.poultryinternational-digital.com/201903
http://www.poultryinternational-digital.com/201902
http://www.poultryinternational-digital.com/201901
http://www.poultryinternational-digital.com/201812
http://www.poultryinternational-digital.com/201811
http://www.poultryinternational-digital.com/201810/
http://www.poultryinternational-digital.com/201809/
http://www.poultryinternational-digital.com/201808/
http://www.poultryinternational-digital.com/201807/
http://www.poultryinternational-digital.com/201806/
http://www.poultryinternational-digital.com/201805/
http://www.poultryinternational-digital.com/201804/
http://www.poultryinternational-digital.com/201803/
http://www.poultryinternational-digital.com/201802/
http://www.poultryinternational-digital.com/201801/
http://www.poultryinternational-digital.com/201712/
http://www.poultryinternational-digital.com/201711/
http://www.poultryinternational-digital.com/201710/
http://www.poultryinternational-digital.com/201709/
http://www.poultryinternational-digital.com/201708/
http://www.poultryinternational-digital.com/201707/
http://www.poultryinternational-digital.com/201706/
http://www.poultryinternational-digital.com/201705/
http://www.poultryinternational-digital.com/201704/
http://www.poultryinternational-digital.com/201703/
http://www.poultryinternational-digital.com/201702/
http://www.poultryinternational-digital.com/201701/
http://www.poultryinternational-digital.com/201612/
http://www.poultryinternational-digital.com/201611/
http://www.poultryinternational-digital.com/201610/
http://www.poultryinternational-digital.com/201609
http://www.poultryinternational-digital.com/201608
http://www.poultryinternational-digital.com/201607
http://www.poultryinternational-digital.com/201606
http://www.poultryinternational-digital.com/201605
http://www.poultryinternational-digital.com/201604
http://www.poultryinternational-digital.com/201603
http://www.poultryinternational-digital.com/201602
http://www.poultryinternational-digital.com/201601
http://www.poultryinternational-digital.com/201512
http://www.poultryinternational-digital.com/201511
http://www.poultryinternational-digital.com/201510
http://www.poultryinternational-digital.com/201509
http://www.poultryinternational-digital.com/201508
http://www.poultryinternational-digital.com/201507
http://www.poultryinternational-digital.com/201506
http://www.poultryinternational-digital.com/201505
http://www.poultryinternational-digital.com/201504
http://www.poultryinternational-digital.com/201503
http://www.poultryinternational-digital.com/201502
http://www.poultryinternational-digital.com/201501
http://www.poultryinternational-digital.com/201412
http://www.poultryinternational-digital.com/201411
http://www.poultryinternational-digital.com/201410
http://www.poultryinternational-digital.com/201409
http://www.poultryinternational-digital.com/201408
http://www.poultryinternational-digital.com/201407
http://www.poultryinternational-digital.com/201406
http://www.poultryinternational-digital.com/201405
http://www.poultryinternational-digital.com/201404
http://www.poultryinternational-digital.com/201403
http://www.poultryinternational-digital.com/201402
http://www.poultryinternational-digital.com/201401
http://www.poultryinternational-digital.com/201312
http://www.poultryinternational-digital.com/201311
http://www.poultryinternational-digital.com/201310
http://www.poultryinternational-digital.com/201309
http://www.poultryinternational-digital.com/201308
http://www.poultryinternational-digital.com/201307
http://www.poultryinternational-digital.com/201306
http://www.poultryinternational-digital.com/201305
http://www.poultryinternational-digital.com/201304
http://www.poultryinternational-digital.com/201303
http://www.poultryinternational-digital.com/201302
http://www.poultryinternational-digital.com/201301
http://www.poultryinternational-digital.com/201212
http://www.poultryinternational-digital.com/201211
http://www.poultryinternational-digital.com/201210
http://www.poultryinternational-digital.com/201209
http://www.poultryinternational-digital.com/201208
http://www.poultryinternational-digital.com/201207
http://www.poultryinternational-digital.com/201206
http://www.poultryinternational-digital.com/201205
http://www.poultryinternational-digital.com/201204
http://www.poultryinternational-digital.com/201203
http://www.poultryinternational-digital.com/201202
http://www.poultryinternational-digital.com/201201
http://www.nxtbookMEDIA.com