f the agricultural poultry constituted about 45% of the volume of domestic manufacture.
In 2011, according to the experts’ estimates and calculations of B2B Research, the volume of the Russian market of poultry industry equipment constituted about 1,860 units. At the same time the share of the domestic equipment was about 41 % and the share of the import was about 59 %.
General characteristics of the market
The largest segment of the market was occupied by the floor equipment for the maintenance of agricultural poultry, which constituted about 37% of the total volume. The volumes of the segments of cage and incubatory equipment were about 35% and 29% respectively.
The prevalence of the floor equipment for the poultry industry in the Russian market was achieved through the large number of imported products (about 46 % of the total volume of the import). This segment occupied about 25 % of the domestic manufacture market.
In addition, the following tendencies, which influence the development of the market, were noted in 2011:
Ø The cage equipment for the maintenance o
Ø The volume of the export of domestic equipment for the poultry industry was about 20 units. All the exported equipment was classified as cage and incubatory, the export of the floor equipment was not registered by the Federal Customs Service. The equipment was exported to the CIS countries: Uzbekistan, Azerbaijan, Tajikistan and Turkmenia.
Ø The floor equipment segment was prevalent in the structure of import; its share in the total volume of import was about 46%.
Ø In 2011 the equipment for poultry industry, manufactured by VENCO PROJECTS B. V and intended for incubation and the breeding of the poultry in the same medium (the Patio system), was imported into the Russian market.
Ø In the Patio system the phases of incubation and hatching are united. The system is intended for the hatching and breeding of broilers in the ideal medium. Instead of the transportation of daily nestlings from the incubator to the broiler farm, the eggs enter the Patio system after 18 days of incubation.
Factors, which influence the development of the market
The state and development of the Russian market of poultry industry equipment, including the volumes of Russian manufacture and volumes of import, are determined by a complex of factors, which have a combined influence on the sector.
The most important factor emphasized by the experts is the growth of the poultry meat market, induced by a stable increase of the consumption of poultry eggs and meat, which creates a demand for the poultry industry equipment.
According to the experts, the factors, which positively influence the development of the branch, are the following:
Ø Macroeconomic situation in the country, in particular the growth of the industrial production and foreign trade turnover of Russia.
Ø Implementation of special-purpose state programs such as ‘The Development of Poultry Industry in the Russian Federation in 2010-2012’ and ‘Concept of the Development of Poultry Industry in the Russian Federation in 2013-2020’. The main measures, stipulated by the programs, are the reduction of the quota for the imported poultry meat and the provision of state subsidies on the credits for financing the programs in accordance with the priority national project in the agricultural sphere.
The factors, which negatively influence the development of the market, are the following:
Ø The entry of Russia into the WTO (World Trade Organization), which resulted in the growth of competition and reduction of opportunities for the development of domestic companies, which manufacture the poultry industry equipment.
Ø The increase of prices for metal, as the manufacture of the poultry industry equipment is a metal-intensive branch and the dependence of the enterprises in this sphere on the metal price is rather high.
Ø The complications, connected with the delivery of the equipment to different Russian regions, including its high cost, which leads to the rise of the equipment prices, as well as long delivery terms and spoiling of the equipment during transportation.
According to the last year results, the largest market players are: BIG DUTCHMAN INTERNATIONAL GMBH, the Pyatigorskselmash OJSC, Vostokptitsemash CJSC and F.I.E.M. S.N.C. DI TINA LUCCINI & C. The total share of the mentioned companies was about 54 % of the total market volume. The rest enterprises occupy less than 5.5 %.
The domestic manufacture in the Russian market is mainly represented by the segment of the cage equipment for the agricultural poultry maintenance. In 2011 it constituted about 45.0 %. The shares of the floor and incubatory equipment in the structure of domestic manufacture were about 25% and 30% respectively.
The price segmentation is formed on the basis of the quality of materials and reliability of the equipment, service life, as well as the purpose of the equipment (for use in the subsidiary plot or in the large manufacture).
The domestic and semiprofessional equipment for the poultry industry is rather cheap. The prices of the incubators begin with 2,500 rubles and the prices of the cages begin with 1,500 rubles.
The cost of the poultry industry equipment in the medium price segment varies between 40,000 and 200,000 rubles. In the high price segment the prices can vary between about 200,000 rubles (for the unit of equipment) and 1,500,000 rubles and more (for the manufacturing line, which consists of a complete set of equipment for the hatching and breeding of the agricultural poultry).
The cage equipment for the maintenance of the agricultural poultry is the most expensive. Its average cost is 2-3 times higher than that of the floor equipment.
The incubatory equipment is mainly purchased as concomitant equipment during large purchases of the equipment for poultry maintenance. The price of this equipment is determined by the quantity of the eggs, for which the incubator is intended. The prices of the incubators, intended for 300-900 eggs, vary between 40,000 and 90,000 rubles.
Focus on a consumer
The main consumption of the poultry industry equipment accrues to regions with developed poultry industry. They include the Central, Northwestern and Southern Federal Districts.
Large poultry enterprises prefer to purchase the equipment from foreign manufacturers, the main advantage of which is that they deliver completely ready plug-and-produce technological complexes.
At the same time, according to the experts, one of the drawbacks of the domestic poultry industry equipment is a rather poor quality and reliability, as well as the absence of a balanced system of timely service support.
The main consumers of the domestic poultry industry equipment are small enterprises, which is connected with its lower cost, as well as the enterprises, which have existed since the times of the USSR and purchase details for the repair of old equipment from the Russian manufacturer.
Prognoses and conclusions
The experts estimate the Russian market of the poultry industry equipment as a growing market. At the same time the most important positive factor, which contributes to growth, is the intensive development of the poultry meat market.
According to the experts, the Russian market of poultry industry equipment still has a potential for growth. There is a great possibility that new market players will appear.
According to the optimistic prognosis of the market development, its growth in 2012-2013 may constitute between 10 and 25%. The following tendencies also speak for the optimistic scenario:
Ø The predicted continuation of growth of the poultry meat consumption, which will increase the demand for the poultry industry equipment from poultry plants;
Ø The development of new technologies of incubation and breeding of poultry, which leads to the formation of a new segment of the market of poultry industry equipment.
According to the pessimistic prognosis, in 2012-2013 the growth of the market will also take place, but it will constitute no more than 3-5%. The experts determine such deterrents of the development as, first of all, the existence of large manufacturers of the poultry industry equipment, which almost completely divide the Russian market among themselves.
The majority of the experts agree that the growth of the Russian market of poultry industry equipment will be achieved through foreign manufacturers and domestic companies will not be able establish themselves as leaders in the near future.
Source: Federal Customs Service, Rosstat, experts’ estimate, B2B Research
Table 1. Shared distribution of the volume of poultry industry equipment market in terms of assortment segmentation in the Russian Federation in 2011, %
Source: Federal Customs Service, Rosstat, experts’ estimate, B2B Research
ИНКУБАТОРНОЕ ОБОРУДОВАНИЕ 27,9 %
INCUBATORY EQUIPMENT 27.9 %
НАПОЛЬНОЕ ОБОРУДОВАНИЕ ДЛЯ СОДЕРЖАНИЯ С/Х ПТИЦЫ 37,5 %
FLOOR EQUIPMENT FOR THE MAINTENANCE OF THE AGRICULTURAL POULTRY 37.5 %
КЛЕТОЧНОЕ ОБОРУДОВАНИЕ ДЛЯ СОДЕРЖАНИЯ С/Х ПТИЦЫ 34,6 %
CAGE EQUIPMENT FOR THE MAINTENANCE OF THE AGRICULTURAL POULTRY 34.6 %
Table 1. Shared distribution of the volume of domestic manufacture of the poultry industry equipment in terms of assortment segmentation in the Russian Federation in 2011, %
Source: Rosstat, experts’ estimate, B2B Research
Инкубаторное оборудование 30,0 %
Incubatory equipment 30.0 %
Напольное оборудование для содержания с/х птицы 25,0 %
Floor equipment for the maintenance of the agricultural poultry 25.0 %
Клеточное оборудование для содержания с/х птицы 45,0 %
Cage equipment for the maintenance of the agricultural poultry 45.0 %