Novosibirsk poultry farms predicted a drop in egg prices

Last year's price surge allowed companies to make money, but whether they will retain earnings is still a question.

Novosibirsk poultry farms increased their profits in 2023. And this does not seem surprising: at the end of last year, egg prices in the country and region unexpectedly soared. The authorities intervened in the situation , eggs were going to be imported from neighboring countries, and President Vladimir Putin apologized to citizens for the prices. Now the situation is stabilizing. NGS talked with representatives of Novosibirsk poultry farms and found out what factors influenced the price increase, whether to expect a repeat of the situation and whether profits will continue to grow. How the price of eggs changed. it was difficult for ordinary citizens not to notice the jump in prices for chicken eggs. According to the Ministry of Industry and Trade of the Novosibirsk Region, if last September you had to pay an average of 84.91 rubles for a dozen, then at the end of December the price reached a peak and amounted to 136.62 rubles. After this, a gradual decline began. In April 2024 , the average price for a dozen is 129.62 rubles. Last year, the Ministry of Agriculture of the Novosibirsk Region cited rising prices for poultry feed ingredients, veterinary drugs and an increase in employee salaries as the reasons for rising prices. How much did the poultry farms of JSC Chikskaya Poultry Farm earn? The Chikskaya Poultry Farm is located in the village of Prokudsky, Novosibirsk Region. According to information from the company's website, the enterprise contains 1.2 million birds. 900 thousand eggs are produced here per day, 35 types in total. The company employs 600 employees. The factory began to be built in 1969. Bruno Schmidt became the first DIRECTOR; he led the company for 36 years. In 1962, the organization received the name “Poultry Farm named after 50 years of the USSR” and worked under it until 2017. Now the brand of eggs “Bright Morning”, which is produced in Chika, is one of the most popular in the Siberian Federal District. According to the RusProfile service, today the poultry farm is headed by Andrey Bil. Since June 2023, the factory has been owned by New Investment and Financial Company LLC, registered in Moscow. It is owned by Dmitry Kadushin and Ilya Korbashov. In 2023, the company's revenue amounted to 2.5 billion rubles, net profit - 451 million rubles. A year earlier, the factory received revenue of 2.047 billion and net profit of 117.4 million rubles. "Novo-Baryshevskaya" Poultry farm "Novo-Baryshevskaya" is one of the enterprises of the agricultural holding of the "Oktyabrskaya" poultry farm. It has two branches: in Koltsovo and Baryshev. The company's website states that the factory produces 350 million eggs per year. The products are sold under the brands “Koltsovskoye”, “Solnyshko”, “La Ferma” and “Derevenskoye”.





















The HEAD of the company is Irina Podoima. The revenue of CJSC Poultry Farm Novo-Baryshevskaya in 2023 amounted to 3.4 billion rubles, net profit - 581 million rubles. A year earlier, the company earned 3.2 billion in revenue and 521.1 million in net profit.

In March 2023, residents of Koltsovo and Nizhnyaya Eltsovka suspected that due to the operation of the Novo-Baryshevskaya poultry farm, an unpleasant odor appeared near their houses. ROSSELKHOZNADZOR responded to this by saying that no violations of the requirements of veterinary legislation were found at the enterprise. The factory itself named ways to combat the unpleasant odor from production. For example, a special workshop worth 250 million rubles was launched on its territory for this purpose.

"Posevninskaya"

Another enterprise that is part of the Oktyabrskaya agricultural holding. The Posevninskaya poultry farm is located in the Cherepanovsky district, in the working village of Posevnaya. The website of the Oktyabrskaya holding states that the factory produces edible eggs, raises broiler chickens and produces grain crops such as wheat, barley, oats,peas and soybeans.

The founders are not listed in the RusProfile service, but until 2021, Posevninskaya was owned by the Novo-Baryshevskaya poultry farm . Now the director of the enterprise is Gennady Udovchenko.

In 2023, the factory's revenue amounted to 1.5 billion rubles, net profit - 255 million. In 2022, the figures amounted to 1.45 billion and 185 million rubles, respectively.

“Kargatskaya”

Another poultry farm “Oktyabrskaya”, it was annexed in 2011. The poultry farm is headed by Alexander Manchev; he is not listed as the head of other organizations. The founders are not listed in the service. The company produces eggs under the Kargatskoe brand.

In 2023, according to RusProfile, the factory received revenue of 439 million rubles and a net profit of 126 million rubles. In 2022, revenue amounted to 316.5 million rubles, net profit - 7.035 million rubles. At the same time, in 2021 the company was unprofitable.

“The price is already falling significantly”

At the poultry farms themselves they say that prices have begun to decline and there is no need to expect a rise.

— Revenue increased due to the selling price. The fourth quarter played the main role. Our production volumes are stable, within 300 million pieces per year,” Nadezhda Soldatova, chief economist of the Chikskaya poultry farm, told the NGS. “There will be no growth this year, that’s clear.” I cannot vouch for the changes that may occur at the end of the year - this was not predicted in the past either. The price peaked in December, and this hasn’t happened since then. There was no growth in January and February, we are going down. Easter has passed, summer is ahead. The price is already dropping significantly.

According to Anton Savelyev, deputy general director of the Oktyabrskaya group of companies, at the end of 2023 prices increased due to a combination of several factors. One of them is bird flu , which has killed large numbers of poultry in some Russian factories. As a result, other enterprises had to increase production volumes.

— Until 2022, in the previous 5 or more years, there was low profitability in egg poultry farming, many factories operated at a loss. A number of enterprises could not withstand the competition in the market and closed. This also led to a decrease in production volumes. The problem of bird flu has arisen. As a result, the country's output declined in mid-2023. And the shortage of eggs led to an increase in price,” explained Anton Savelyev.

The expert calls the regions of Western Siberia - Novosibirsk region, Altai and Krasnoyarsk territories, Kuzbass, Omsk region - surplus in egg production. They produce more of it than the local population needs, so large volumes are exported to other parts of the country and abroad.

At the end of last year, prices increased due to demand, and factories that did not stop working made high profits. Among the Oktyabrskaya enterprises, the Kargatskaya poultry farm especially stood out, which increased its net profit from 7 to 126 million rubles. In 2021, the loss was 78 million.

— There have also been losses at Kargatskaya in recent years, but here the poultry farm somehow survived. When there was a general shortage of volumes, additional profits appeared; over three years, an average of 10% in profitability would be obtained. This is the economy as it is,” says Anton Savelyev.

Increased demand, according to him, leads to higher prices in the period six months to a year. After the number of poultry at poultry farms is restored, prices stabilize. This is exactly what is happening in the region now.

— Today the price has decreased. It may not yet have adequately decreased in retail outlets, but it has happened at poultry farms,” emphasizes Anton Savelyev. — Now the situation has stabilized. The selling price in the Novosibirsk region is about 6 rubles per piece.

At the same time, according to preliminary estimates, in the second half of 2024, the industry is projected to have zero or unprofitable profitability.

“But these are forecasts - we don’t know how the veterinary situation will develop. Today the wholesale price is 6 rubles. It is different everywhere and largely depends on the efficiency of the enterprise,” summed up Anton Savelyev.

Now in Novosibirsk stores there is actually a decrease in prices for eggs. For example, through the delivery service in the METRO store, the cheapest C1 eggs cost 135 rubles. According to online catalogs, for a dozen in the same category in Lenta you will have to pay 122.19 rubles (however, in fact, in Lenta stores you can find eggs much cheaper - from 74 rubles per dozen), in Magnit - 98.39 rubles, in Pyaterochka - 119.99 rubles and in Okay - 138.99 rubles. You can find eggs cheaper in regular stores.

Not only poultry farms, but also other businesses that produce food have seen record profits. But at the same time, there are also obvious outsiders among industry representatives. Read about who showed steady growth and who showed decline in the material of NGS columnist Stas Sokolov.