Russia considers poultry meat and egg production quotas
Russia could theoretically in the near future create a system of quotas to limit the production of poultry meat and eggs in order to avoid oversupply of the market, according to the Ministry of Agriculture of the country.
This opinion was first expressed by the Russian ex-Minister of Agriculture Alexei Gordeev in 2009. According to him if the country continues to increase poultry production and fail to increase poultry exports, the market could face problems of overproduction and consequently a fall in prices.
In 2013 Russia almost reached complete self-sufficiency in poultry and egg production which once again raise the question about the need to create a quota system. Market participants in general disagree with the measure, claiming that the market is able to keep balance by itself. CEO of Stavropol Broiler Dmitry Aveltsov expressed confidence that the market should not be regulated this way.
“Weak and inefficient production will wither away in the face of fierce competition in the domestic market. Small internal crisis of overproduction may play the role of an alternative regulator in the internal market, and this will be better than the impact of a quota system,” say market participants.
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