"The purpose of our meeting is to help businesses to restructure in a crisis, find a new growth point. Rosselkhozbank as a supporting Bank of agriculture looks at the poultry industry from the position of sustainable development of agriculture: ensuring a sufficient food supply, preserve employment and financial stability of our borrowers," — these words Boris Leaves welcomed the participants of agressii. The Chairman of the Board of Rosselkhozbank also urged to find sustainable solutions to support the industry and noted that over the past 10 years, the Bank has invested in the development of the Russian poultry 400 billion.

Participants in the meeting were representatives of the Ministry of agriculture, the National Union of poultry farmers, the business community. They discussed the level of profitability of the industry, focusing particularly on ways to reduce the cost of production, touched on issues of Russian exports of chicken. Topics of discussion were also meat processing as the main target state of the industry and sales channels.

In the event the Bank congratulated with the 20th anniversary. Participants noted that agricultural preserves, the status of the main agricultural Bank in the country and is at the forefront of Russian economic sector. In their view, the RAB is a key business partner to farmers, which it provides large-scale financial and expert support.

"Rosselkhozbank is an integral link in the chain of ensuring food security of our country. Institute of Russian agricultural Bank carries out tremendous work for the promotion of the industry as a whole, and of products from poultry meat on the domestic and foreign markets. The Bank presents an excellent platform for exchange of views between key market players, the regulator and financial institutions. Dialogue is now needed. In April of this year, poultry farmers are faced with the task scissors, when the wholesale price was below cost. There is also the question of need of development of export markets for Russian poultry meat", — said at the meeting, Director General of the National Union of poultry breeders Sergey Lakhturov.

A report on the main trends of the market of broiler meat were Andrey Dalnov, head of the Center for industry review (COE) Rosselkhozbank. According to him, currently in Russia there is territorial imbalance: there are risks of oversupply of chicken meat in the European part of Russia and deficit of production in Siberia and the far East. Overall, the Bank forecasts that consumption of poultry per capita in absolute terms will grow faster than all other types of meat. By 2028, the capacity of the global poultry market will grow by 12% to 120 million tonnes in product weight due to population growth and increased consumption per capita.

To agressii analysts, ZOE Rosselkhozbank was prepared price indices, which give an idea about the price of 80% of offered products. In January-may 2020 the average price of a broiler carcass was 98 RUB/kg, which is 7% less than in the same period of 2019 to assess ZOE, the average price for 2020 could reach 101 RUB/kg (2019 – 108 RUB/kg). The average price may be below the level of 2019 due to fluctuations in demand in the first half of the year and fast growth of pork production, which is the closest substitute for chicken.

On the export of Russian poultry meat elaborated Andrei Teryokhin, head of export Department "TD Cherkizovo". "Our industry has reached a balance of supply and demand. Any further development of the poultry industry will be associated with the implementation of export opportunities, as a number of positions we have the element of overproduction. One of the important factors in pricing is the cost, including the cost of soybean. The development of vertical integration, optimize cost improve business margins. Investment in freezing, high quality refrigeration equipment is a key area for investment by companies, which involve export development," he said in his speech.

"We expect a smooth growth of consumption of chicken increased with a compound annual growth rate of 0.4%. There are reserves for increasing the competitiveness of Russian companies – localization of production of soybean meal in the European part of the Russian Federation, import substitution of hatching eggs and the growth of market concentration. In addition, the low price of chicken meat in the domestic market are the impetus for the development of exports, which can help to relieve the market of the European part of Russia in future", — summarized Andrei Dalnov.

Points of growth of investment lending poultry industry in Rosselkhozbank consider the completion of vertical integration of producers (production of hatching eggs, production of meat products, including for HoReCa and export), as well as the launch of new capacities in Siberia and the far East to meet the demand for chilled meat. In these regions the potential capacity, taking into account ongoing projects, the Bank's analysts estimate of 191 thousand tons. Because of the geographical remoteness from the European part of the country and low competition in Siberia and the far East are favorable factors for the development of the poultry industry. In particular, the SFO such factors are designed to lower feed costs on the back of high prices for chicken.

Assessing the possibility of new investments as well as mergers and acquisitions Alexander ACE, Vice-President of the Group of companies "Resurs", said: "the Poultry industry will move from West to East. Investment potential in the far East entails not only meeting domestic demand in the region, but an increase in exports of domestic products in the countries of South-East Asia. With the opening of the Japanese market, demand for quality and culture of production production of poultry meat will definitely increase. To meet these requirements can only vertically integrated holding companies with high export potential. At the moment the main transaction associated with the acquisition of distressed assets, and for this reason some of them went on the open market in the banking sector. A complex condition of such assets requires the Bank understanding of the investment strategy of the company and long-term financial resources. Rosselkhozbank is a strategic partner in these transactions, understanding the strategy of their clients, simplifying their internal processes to achieve common goals."

Summing up the results of agressii, the participants noted that in the current year in the market of chicken meat observed balance: production is not growing, and exports approximately equal to imports. Profitability may also decline due to the rising cost of basic components cost of production, including feed grains and soybean meal. In the long term the growing production of pork will continue to put pressure on the price of broiler meat.

In General, the results of the meeting, the participants identified the consensus thesis that the Russian market of poultry products is at a high stage of development and can be considered established and Mature.

JSC "Russian agricultural Bank" – the basis of national credit and financial service system of agroindustrial complex of Russia. The Bank was founded in 2000 and today is a key lender to the agriculture of the country, is among the largest and most stable banks in the country in terms of assets and capital, as well as the leaders of a reliability rating of the largest Russian banks.