### Russian Poultry Sector Shrinks Amid Rising Losses and Consolidation
By the beginning of June 2026, Russia had 4,570 poultry farming companies, marking a year-on-year decline of 2.84%, according to market participants cited by [Kommersant](https://www.kommersant.ru/doc/8796575?max).
The number of legal entities in the industry decreased by 2.41% year-on-year to 1,170, while individual entrepreneurs dropped by nearly 3% to 3,400. Since 2022, the total number of companies has fallen by 9%.
Experts attribute the current decline to frequent business closures due to increased losses and industry consolidation. In the broiler sector, major players such as "Resurs" and "Cherkizovo" already control around 30% of the market. Scaling up operations is seen as one of the most viable strategies for companies amid declining profitability in the sector.
According to specialists, profitability among egg producers dropped from a peak of 54% in the first quarter of 2024 to just 5% by the end of 2025. Profit margins for chilled poultry meat fell from 12% to 6%, while frozen poultry meat saw a decline to 1-2%. The high key interest rate has led to more expensive working capital loans for purchasing grain, veterinary products, and energy resources, which disproportionately affects small and medium-sized farms where production costs are 10% higher than those of large poultry farms.