After Russia invaded Ukraine in February 2022, some governments introduced a series of heightened sanctions against Russian trade and Russian officials.
Some expected these measures to cause immediate and devastating damage to the country’s economy. The 30% contraction forecast has not materialized, according to the Financial Times. However, the impact is felt throughout the economy, as Russian companies cannot rely on supplies and technology from other countries.
Russian egg producers were deprived of a vital source of day-old surrogates when trade from the Netherlands was halted last year, the sources said. The impact of the sanctions will include rapid growth in the informal import-export sector, it said. In suitcases and trucks, individuals bring to Russia vital technology and spare parts that Russian companies rely on to keep their businesses running.
Additionally, Russian companies may have sought these important items from other sources.
As a net exporter of grains and oilseeds, Russia’s poultry and livestock companies are unlikely to face shortages of feed commodities or higher prices elsewhere.
Russia ran a budget deficit of 3.3 trillion rubles (RUB; $47 billion) last month, according to The Moscow Times reports. After peaking at the height of the 2020 coronavirus/COVID-19 pandemic, this is the second highest monthly deficit in the country’s modern history. Some analysts even put this figure at 3.9 trillion rubles for him.
This gap in the country’s economy stems from the costs of the ongoing military operation in Ukraine and the European Union’s ban on seaborne shipments of crude oil from Russia.
Russia’s finance minister said at a recent government meeting that the deficit was just 1.8% of gross domestic product (GDP) and introduced a series of adjustments to the figures. According to the Minister, this is close to 2% of the plan.
Looking ahead, the Moscow Times reports that recent EU sanctions and gas price caps will make the Russian economy more vulnerable next year. By 2023, Russia will no longer be able to rely on commodity exports to support the economy.
Despite pressure on the country’s economy, industrial meat supply rose 6% year-on-year to 848,000 tonnes (mt; carcass weight) in November. This is according to the latest figures from Russian meat giant Cherkizovo. Figures represent indices based on domestic commercial production, imports and exports calculated using proprietary formulas. For the period January to November 2022, the combined index of chicken, pork and beef was 8.64 million tons (mmt). That’s 4.5 times more him than at the same time last year.
Cherkizovo calculated the total poultry meat (chicken, turkey and other birds) index for November at 419,000 tonnes. This is 6% higher than last year. Production is said to have increased by 7.1%, while imports fell by 24% and exports by 5%.
The pork index of 345,000 tonnes increased by 3% in the same month compared to November 2021. Domestic production increased by 3.6%, exports by 9% and pork imports by 85%.
For beef, the index rose 21% year-on-year to 84,000 tonnes. Production increased by 2.9%, imports increased by 64%, but exports fell by 38%.
For the period January to November, the company reported an index of 4.34 million tons for chicken (+3% year-on-year), 3.58 million tons for pork (+8%) and 0.72 million tons for beef (-3%). are doing.
Shortly after Russia’s invasion of Ukraine began last year, fast food chains McDonald’s and Kentucky Fried Chicken announced they would close their operations in Russia.