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Difficult times

Valery Repnikov, the director of antler-exporting firm Altaipharm, said that he used to sell antlers at a price of $1,000 per kilogram back in 1995. However, after the Asian economic crisis in 1997, prices for these products fell four times. Ironically, the Russian crisis of 1998 saved the industry.

“Dollar prices fell four times over, whereas ruble prices fell six times over; therefore, ruble prices ended up growing by 50 percent,” Repnikov said. “This is how the industry managed to survive.”

The 2000s, however, were not a good time for the antler market, he said. “The cost of production has increased so much over the past few years that the profitability of maral farms does not exceed 10 to 15 percent now.”

Repnikov believes that prices must reach $450-$500 per kilogram, from a current $200-$350, within the next year or two, otherwise it will be difficult to keep the breeding industry alive. Subsidies of approximately 36.5 million rubles ($1.13 million) from the federal and Altai republic budgets will go to support it this year alone.

“Maral farms are not growing at all, since expanding them would require a profit margin of at least 30 percent,” said Alexander Yermilov, the director of a maral farm. “There are concerns that managers at maral farms may at some point decide that breeding red deer for meat is a more lucrative proposition.”

 

 

 


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