Since OTO Moscow has received several enquiries on the opportunities to export poultry meat to Russia, we would like to highlight this case in this newsletter.

Average poultry prices in Russia:

1. The average price for 1 kg in Moscow area is about 85 rubles which is 1.3$ per kg of chilled or frozen poultry. Fresh poultry costs about 4 $ per kg and has very short shelf life. 
2. The average price for 1 kg of poultry imported from Brazil is 210 rubles which is $3.33 per kg.
3. The average  Return On Investment rate of 9-10% in this industry is decreasing and requires substantial investments to earn on economy of scale. (9-10%) 
4. In four years Russia since the imposement of the U.S. sanctions and as a result - imposed countersanctions that resulted in blocking the Russian market for U.S. and European exporters, Russian poutry industry turned into the net exporters, initiating intenisve exports to the international market. The recent Gulf Food exhibition was a vivid evidence of this fact. Russian national exposition featured five large poultry farms that have started exports operation into the Gulf region market. 
5. The import duty on the poultry meat is 80% and VAT tax rate is 10% -thus producing almost a prohibitive tariff of 90% and if we add transporation and insurance cost that will constitute about 120%, which makes a very challenging task to compete with Russian producers.
6. The last country that was possible to compete with Russian producers was Brazil, but the quotation of 3,33$ per kg for the wholesale market drove them out of the game. 

OTO Moscow recommends being very careful prior to exporting poultry meat to Russia, since there are a lot of bureacratic barriers including the necessity to obtain the permit from the Rosselkhoznadzor, a sanitary body that costs about 25000 US?$. The similar recommendations are actual for Kazakhstan market as well, since this country is also the member of the Eurasian Customs Union.