NEWS FEED & ADDITIVE MAGAZINE January 2023 11 Rabobank explains challenges of poultry industry to face in 2023 Rabobank has announced its foresights of global poultry industry for 2023 in its report titled “Poultry Quarterly Q1 2023: Outlook 2023 – Bullish Markets Amid Rising Cost, Supply, and Avian Flu Worries”. For most markets, the outlook for 2023 is positive according to the report. Demand remains strong and supply limited, but the context is changing. An economic downturn will affect market conditions, and ongoing high inflation will pressure consumer spending power. This typically translates to strengthening demand for chicken, eggs, and cheaper cuts, and, in markets where more expensive, slower-growing, and organic options are available, strengthening demand for conventional chicken products. Although a rising number of countries are risking oversupply, global markets are expected to stay strong in 2023, with global poultry demand expected to benefit from trading-down. However, in many countries, demand growth will be restricted by tight supply, leading to ongoing high prices. Although chicken is the best positioned protein in terms of affordability, it raises the question of what price consumers are prepared to pay. This could lead to demand destruction, especially among low-income consumers. This is happening globally but especially in emerging markets in Asia, Africa, and Latin America. Read more>> Cherkizovo Group has won the auction for the sale of Russian Grain Ufa's poultry, crop, and fodder production businesses. The acquisition will strengthen the company's position in the poultry market in the Urals and neighboring regions. In the auction held at the Auction House of the Russian Federation for the sale of the assets of Russian Grain Ufa, the seller was the non-core asset bank Trust. The single lot included 100 % shares in JSC Bashkir Poultry Farm, JSC Turbaslinsky Broilers, JSC Ufa Grain Products Plant, Bashkir Grain+ LLC, Bashkir Grain LLC and Turbaslinsky Broiler Trading House LLC, as well as rights to claim under loan agreements between Trust and JSC Bashkir Poultry Plant and JSC Turbaslinsky Broilers. The winning bidder was AIC Mikhailovsky (part of Cherkizovo Group), which had previously obtained approval from the Federal Antimonopoly Service to acquire these assets. The purchase price is RUB 6.37 billion (about US$92.2 million). For Cherkizovo Group, the acquired companies are the first production assets in Bashkortostan. They include five poultry farms with an annual live-weight capacity of 65,000 tonnes of broiler meat, annual processing capacity of 25,000 tonnes, annual marketable egg production of 750 million eggs, a feed mill with an annual capacity of 240,000 tonnes and a land bank of 18,000 ha. Read more>> Cherkizovo acquires Bashkortostan’s largest agricultural holding
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