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Russia livestock production down 12% in 2009

Analysts estimate that in 2009 the livestock production output in Russia may be reduced by 12%, and consumption down to 2.1 mln tonnes. However, there is an increase in chicken meat consumption.

The reason behind the fall in demand is the reduction of the purchasing power of the citizens, whose income does not allow them to regularly buy beef as it has been before. The demand is expected to shift to chicken meat which is cheaper.

Over the past years Russian cattle farming has been in distress, mainly because of low profitability of beef compared with other meats and, as a consequence, the lack of investments to the sector. The payback period of investment projects in beef production is 10 years, which is 3-5 times longer than that in the production of pork and poultry.

Natalie Berkhout

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