Kyrgyzstan poultry farms on the verge of extinction

By Vladislav Vorotnikov

- Last updated on GMT

Poultry prices have dropped by 45% as Russia undercuts Kyrgyzstan's trade
Poultry prices have dropped by 45% as Russia undercuts Kyrgyzstan's trade

Related tags: Poultry farming, Farm, Kyrgyzstan

Common customs space with Russia and Kazakhstan has almost killed off poultry farming in Kyrgyzstan, according to a report from the chairman of the country’s Union of Poultry Farmers, Rustam Osmonaliev. 

 Nearly all the country’s poultry farms are on the verge of bankruptcy and may not survive this year, said the report.

Poultry farming is now experiencing great difficulties, as we are on the verge of completely losing the industry. The impact from the country joining the Customs Union [in 2014] was extremely negative. Kazakh and Russian products come into the country at very low prices, which are much lower than domestic market prices, with products often smuggled in,​” he said.

He indicated that the situation was worst in the south of the country, where small companies – 2,000 poultry farmers in total – are mainly concentrated. Prices for eggs and poultry over recent years have dropped by 45% and have fallen below the cost of production.

Poultry fall threatens food security

There are several reasons for this deplorable situation. The main problem of the industry now is associated with feed products. Kyrgyzstan is a country of mountains, so we do not produce enough feed ingredients to meet the needs of our producers. We have to purchase raw materials and local producers also import [compound feed] from neighbouring countries, from Kazakhstan and Russia. In addition, we purchase veterinary medicines from third countries,​” explained Osmonaliev.

He added that the demise of the poultry industry would not only cause a social problem, as 5,000 people would lose their jobs, but would also pose a threat to the state of the country’s food security. According to official information, Kyrgyzstan’s annual demand for poultry meat is 70,000-75,000 tonnes (t), while the country’s manufacturers produce only 14,000t of poultry, covering less than 20% of overall demand.

According to Osmonaliev, Kyrgyzstan’s Union of Poultry Farmers last month sent a request for support to the country’s Prime Minister Temir Sarmiev. The government has created a crisis commission, which has proposed excluding poultry feed from the list of products that are subject to VAT. The proposal is currently under negotiation.

The bill is in negotiation at government level and we have to wait for the outcome. We have been heard, but now it is a question of time and how quickly this resolution could be approved. We need this [support] right now. In the next two or three months we will simply go bankrupt. We are holding on by using our own resources, but small farmers who feed their families will go bankrupt in the first place, and the second wave will go to large farms. We could completely lose the industry within six months. There is a question as to whether there will be any poultry industry in Kyrgyzstan in the future,​” added Osmonaliev.

Related topics: Business, All Asia-Pacific, Meat, Supply chain

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