July 9, 2025 | 17:25 GMT +7

  • Click to copy
Wednesday- 20:51, 07/02/2024

Russian poultry farmers demand massive state aid expansion

(VAN) The Russian Union of Poultry Producers, Rosptsisoyuz, has requested the agricultural ministry to provide the industry with a long list of financial incentives aimed at boosting broiler meat and egg production.
In 2023, Russia's agriculture ministry said the country's treasury spent 558.6 billion roubles (US$6.3 billion) on supporting agricultural producers. Photo: Canva

In 2023, Russia's agriculture ministry said the country's treasury spent 558.6 billion roubles (US$6.3 billion) on supporting agricultural producers. Photo: Canva

The discussions about the new state aid measures for the Russian poultry industry have been ongoing since October 2023, when Russian President Vladimir Putin instructed the government to take necessary steps to ramp up its output. He criticised the government for not helping Russian farmers expand operations earlier, which contributed to a 27% hike in broiler meat prices in 2023.

“You should have done it timely. In that case, there would not be such a growth,” Putin said during a government meeting.

New subsidies

Rosptsisoyuz asked the government to reimburse part of the direct costs associated with poultry farm construction, reconstruction and renovation. In addition, poultry farmers want authorities to subsidise the construction of infrastructure facilities, gasification, electricity supply, and the construction of access roads to poultry farms. In addition, the farmers want the upper threshold on preferential loans with subsidised interest rates to be raised from the current 600 million roubles (US$6.8 million) to 1.5 billion roubles (US$17 million).

To constrain the growth of retail prices, the organisation also demands the trade markup on eggs to be limited by law withing 5-10%. Plus, the farmers want the retailers to be legally obliged to sign long-term contracts for at least 75% of purchased poultry and eggs.

The Russian poultry industry is ready to expand operations, but only with additional support, Rosptsisoyuz emphasised.

Russia’s agricultural ministry has yet to react to the appeal. Russian poultry farmers are already eligible for aid from the federal budget in numerous forms. In 2023, the ministry stated that the Russian treasury spent 558.6 billion roubles (US$6.3 billion) on supporting agricultural producers.

Imports can hurt

The Russian government has taken steps to increase poultry and egg imports over the past few months, entering into new trade agreements with friendly countries and temporarily abolishing import duties. This measure, however, is yet to bring a tangible result since occasional shortages of broiler meat are still reported across the country.

Rosptsisoyuz also said that the imports would not make a difference for the Russian market, given that the supply volume is insignificant.

On the other hand, Marina Petrova, general director of Petrova 5 Consulting, argued that the rise in imports could hurt Russian poultry farmers, who are already struggling to maintain business profitability at a reasonable level following a 30% surge in production costs last year.

HD

(PW)

Illegal loggers profit from Brazil’s carbon credit projects

Illegal loggers profit from Brazil’s carbon credit projects

(VAN) How a system designed to protect the world’s biggest rainforest is funding businesses with a track record of illegal deforestation.

Cage-free countdown: UK retailers face 2025 deadline

Cage-free countdown: UK retailers face 2025 deadline

(VAN) Pressure is growing on companies to adopt the cage-free commitment for their egg supplies. Many food companies said their eggs would be from cage-free systems by the end of this year (2025).

Droughts worldwide pushing tens of millions towards starvation

Droughts worldwide pushing tens of millions towards starvation

(VAN) Water shortages hitting crops, energy and health as crisis gathers pace amid climate breakdown.

Green Climate Fund approves a record $300 million for FAO-designed projects in Papua New Guinea, Saint Lucia and the Sahel

Green Climate Fund approves a record $300 million for FAO-designed projects in Papua New Guinea, Saint Lucia and the Sahel

(VAN) The initiatives focus on forestry management, fisheries transformation and land restoration.

FAO urges collective action for food security, climate and development challenges in Africa.

FAO urges collective action for food security, climate and development challenges in Africa.

(VAN) Director-General QU Dongyu addresses the 6th AU-EU Agriculture Ministerial Conference.

Science meets soil: High-tech solutions elevate China's agricultural development

Science meets soil: High-tech solutions elevate China's agricultural development

(VAN) In the suburbs of Beijing, there is an agricultural center spanning over 150 hectares dedicated to research, demonstration, and application of high-tech and precision agriculture.

Plant-derived fertilizer additive boosts yields and cuts emissions

Plant-derived fertilizer additive boosts yields and cuts emissions

(VAN) Researchers from the Institute of Applied Ecology of the Chinese Academy of Sciences have developed a new environmentally friendly fertilizer additive that significantly enhances crop yields while reducing emissions of harmful gases.

Read more