The Atyrau region of Kazakhstan has embarked on the construction of a large poultry farm, which will produce goose meat.
In its first stage, the factory will have an annual capacity of about 2,000 tonnes (t), but the project could be expanded in future. Experts say this is one of the first major projects for the production of goose meat in Kazakhstan.
"It’s really a unique project for Kazakhstan, where industrial breeding of geese is still virtually absent," said Gulnar Askavarov, spokesperson for the Administration of Atyrau. "We also plan to build a factory for the production of 2,600t of chicken meat. After construction is finished, the project will cover more than 60% of the region’s poultry meat needs. At present, almost all consumption is provided by import supplies from other areas of Kazakhstan as well from abroad."
According to preliminary information, the total investment cost of the project will be about KZT5.5bn (US$30m), and it will start operating by mid-2015.
"The market for duck and goose meat in the Customs Union of Russia, Belarus and Kazakhstan is estimated to be around 100,000-110,000t per year, with 70,000t accounted for by Russia. Most forecasts predict that volume can double by 2020, giving producers good profitability," said analytical agency Agrorucom.
The project is expected to see a return very quickly – within three to four years – which may attract increased investment in this segment of poultry farming in the Customs Union, especially from foreign businesses.
"Niche products, with small output volumes often provide higher margins. Given the over-saturation of the chicken market and falling profitability in this sector, niche products such as duck, geese and quail can help poultry farmers significantly in financial terms," said Michael Chkanikov, member of the Public Council in Russia’s Ministry of Agriculture.
According to estimates from Evrodon, currently the largest Russian and Customs Union producer of turkey, which owns a number of duck meat production facilities, profitability in the [duck and goose meat] sector stood at 30-35% in 2013, while the average margin on chicken meat was 10-15%, pork 20-23%, and turkey 25%. In 2014 these figures are likely to change as many producers have reported a drop in profitability in most meat production sectors, due to general economic problems within the countries.