W11 Chicken Eggs Update: Price Stability in Russia and the Evolving Dynamics of Brazilian Poultry Genetics Exports

Russia's Poultry Market Sees Price Stabilization After 2023 Surge, Import Measures Take Effect

Recent data from the Russian Federal State Statistics Service (ROSSTAT) reveals a recent trend of price stabilization in Russia's poultry market. Egg prices in Russia decreased by 0.6% month-on-month (MoM) in Feb-24, and chicken meat prices fell by 1.2% MoM. Since the beginning of 2024, egg prices have declined 2.4% year to date (YTD), and chicken prices have decreased 3.7% YTD. Despite the recent price declines, egg prices remain 1.5 times higher YoY, and chicken prices are up 25.6% YoY as of Feb-24.

Import duties were suspended temporarily to increase the domestic egg supply for H1-24. This policy expects to facilitate the import of up to 1.2 billion eggs. Türkiye, Azerbaijan, and Belarus have emerged as key sources of imported eggs, with Belarus significantly increasing its export volume compared to the previous year, with 148 million eggs by March 11, 2024, compared to 53.5 million on the same date in 2023. To address chicken meat prices, a quota of 140 thousand metric tons (mt) for duty-free imports was established for 2024. As of March 13, 2024, import permissions have been granted for slightly over 6 thousand mt of this quota, primarily intended for industrial processing.

Following the substantial price hikes experienced in 2023, the Russian poultry market appears to be stabilizing. Government interventions focused on increasing import volumes and reducing import duties have contributed to this trend.

Brazilian Poultry Genetics Exports Up Despite Lower Revenue in 2024

Recent data from the Brazilian Animal Protein Association (ABPA) reveals positive trends in Brazilian poultry genetics exports for the first two months of 2024. Export volumes of poultry genetics (chicks and fertile eggs) increased by 10.1% YoY in the first two months of 2024, reaching 5.12 million metric tons (mmt) compared to 4.64 mmt during the same period of 2023. Despite the volume increase, export revenue experienced an 8.2% YoY decline, totaling USD 38.7 million compared to USD 42.2 million in Jan-23 and Feb-23.

Mexico remained the primary destination for Brazilian poultry exports, although import volumes dropped by 48.8% YoY to 1.66 mmt in the first two months of 2024. A significant rise in exports was observed towards African nations like South Africa (1.5 mmt), Senegal (1.1 mmt, +75% YoY), and Paraguay (459 thousand mt, +14% YoY). The Brazilian poultry genetics export sector is currently experiencing a period of volume growth but with a decline in overall revenue. This suggests a potential decrease in average export prices.