Kyrgyzstan poultry farmers on verge of bankruptcy
Several poultry farms in Kyrgyzstan have found themselves on the verge of bankruptcy recently. According to analysts, the problems began in the beginning of the 2015 when the country joined to the common customs space of the Russian-led Eurasia Economic Union.
The abandoning of duties on poultry meat and eggs resulted in a rise of the flow of imports from Russia and Kazakhstan. According to data of the country’s Union of Poultry Farmers the problems is connected with the fact that the production cost of poultry in Kyrgyzstan is bigger than in most neighbouring states.
High production costs
“We have several huge poultry farms in the country. One of them has already closed and the others are on the verge of bankruptcy. The problem is that the production cost of poultry and eggs in the country are bigger than in Kazakhstan and Russia as we have more expansive feed, due to the fact that most components we have to import from abroad,” the official report of the representatives of the Union cited.
Representatives of the Union have appealed to the government requesting to release poultry farmers from payment of VAT until September of 2016. They feel that this measure is a means of possible support for the profitability of the industry. This measure is currently under discussing in the country’s Ministry of Economy, according to the report.
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