August 10, 2022

Chicken meat production plummets in Armenia

The Russian-Ukrainian conflict and its aftermath have had a significant impact on supply chains around the world. Sanctions against Russia and border closures force the search for new routes to move goods and people.

All the “charm” of these changes was also felt by Armenian exporters and importers, who take the road through Georgia to Russia, where the flow of cars has also increased sharply.

The overload of vehicles at the Upper Lars checkpoint on the Russian-Georgian border has also dealt a severe blow to the import of bird feed, especially in the past 10 days. And without it, the import was slow and the trucks were idle for 10-15 days.

Now, as President Sergey Stepanyan of the Union of Poultry Breeders of Armenia told Armenian, the Russian side claims that the corn quota for Armenia within the EAEU has been exhausted and that, as a result, the production of chicken meat in Armenia is decreasing. because farmers cannot buy fodder, while there is no respective domestic fodder.

Before the start of the Russian-Ukrainian conflict, corn was also imported from Ukraine to Armenia. In addition, half of imported frozen poultry meat also came from Ukraine.

In the case of wheat, there are no problems with the quota, but there are difficulties with the speed of transporting the goods and importing the goods. The only way is through the Upper Lars checkpoint. Here, the Russian government recently decided to open a second customs clearance zone, which, according to the Armenian Ministry of Economy, should increase the service capacity of this checkpoint by 30%. But now there is a quota problem.

The strong fluctuation of the exchange rate is a separate issue.

In addition, natural gas costs are very high and also have a big impact.