Meat (Russian market)

Market segments

• Beef (Russian market)

Export and Import

• Main article: Meat exports and imports in Russia
• Main article: Production, export and import of sausage products in Russia

Animal husbandry in Russia

Main article: Animal husbandry in Russia

Chronicle

2023

Increase in production of meat semi-finished products by 5.8% to 4.65 million tons

In 2023, the production of semi-finished meat products in Russia increased by 5.8% compared to the previous year - from 4.4 million tons to 4.65 million tons. At the same time, an increase of 2.7% was recorded in 2022. Thus, over the year, the growth rate of production of these products has more than doubled. This is stated in a study by BusinesStat, the results of which were published on March 4, 2024.

Meat and meat-containing semi-finished products include large-sized products (cutlet meat, loin and brisket, tenderloin), portion products (anthrecote, beefsteak, fillet, langet, schnitzel, etc.), small-sized semi-finished products (azoo, befstrogan, toast, gulash, kebab, etc.), chopped products (minced meat, cutlets, meatballs, beefsteaks, etc.), semi-finished products in dough (dumplings, etc.), dumplings, etc.

According to estimates, in 2019, 3.66 million tons of meat semi-finished products were produced in Russia. In 2020 and 2021, growth amounted to 14.1% and 2.5%, respectively, to 4.18 million tons and 4.28 million tons. In general, during 2019-2023, product output rose by 27.1%. During this period, a number of investment projects for the production of semi-finished meat products were implemented. In particular, an important event in the industry was the opening in May 2023 of the meat processing enterprise of the Agroeko Group of Companies in the Voronezh Region. The capacity of the production complex is more than 300 thousand tons of products per year, and the assortment has 300 items of packaged products.

The report says that the capabilities of Russian meat processing enterprises allow not only to completely close the needs of the domestic market for semi-finished meat products, but also to significantly increase exports. In this regard, companies from the Russian Federation are expanding the geography of supplies. So, if in 2019 Russian meat semi-finished products were supplied to 17 countries of the world, then in 2023 - to more than 50 countries.^[1]

Growth in meat production by 2.7% to 9.5 million tons

According to IAA IMIT, in 2023, meat production in large agricultural holdings increased by 2.7%, or by 249 thousand tons - to 9.5 million tons of meat in slaughter weight. Most of the meat produced is poultry - 50.2%, pork occupies almost half the volume - 42.9%. A small amount is allocated to the production of beef - 6.7%, lamb and goat - 0.2%. Such data were released in January 2024.

The leader is the Central Federal District, where 4.4 million tons of meat in slaughter weight were produced in 2023, which is 47% of the total production. Production growth was recorded in the North Caucasus (+ 9.1%, 35.1 thousand tons), South (+ 2.5%, 14.2 thousand tons), Volga (+ 4%, 75 thousand tons) and Far Eastern (+ 4.9%, 6.5 thousand tons) federal districts.

𝓲

Unsplash

As Interfax notes, in 2023, large beef producers in the Russian Federation increased losses. Thus, the net loss of the Bryansk Meat Company reached 2.37 billion rubles against 795.8 million rubles in losses in 2022. The Voronezh company "Zarechnoye" at the end of 2023 recorded a net loss of 2.2 billion rubles, while in 2022 cash losses were measured at 1.6 billion rubles.

The head of the National Meat Association (NMA, unites the largest operators of the meat market) Sergey Yushin, in a conversation with Vedomosti, noted that in the production of cattle and beef, agricultural organizations with low or even negative profitability. According to the expert, only premium parts of meat breeds can be sold at a high price. But they account for no more than 10% of the total mass, and the demand for them is relatively small. According to Sergei Yushin, the bulk of beef comes from dairy cows, often going to slaughter when they have already recouped themselves by giving milk.^[2]

Meat consumption in Russia set a new record - 80.8 kg per person per year

Meat consumption Russia in rose to 80.8 kg per person, a record. This was reported on March 28, 2024 "" RIA Novosti with reference to the materials. Rosselkhozbank

According to the materials, meat consumption will continue to grow, and the most popular meat products are pork and broiler meat. The forecast for meat consumption for 2024 is 83 kg of meat per person.

𝓲

Unsplash

According to Andrei Dalnov, chief industry analyst at the RSHB, at the beginning of the 2000s, the main consumption of meat was broiler meat; around 2014, turkey meat took the lead. For 2024, there is a continuation of market diversification - successful large projects for the production and processing of duck and lamb have appeared.

According to the bank's forecasts, pork consumption in 2024 will increase by 1.3 kg per person to 31.9 kg per year, broiler - by 0.5 kg to 33 kg. Beef consumption is expected to rise by 0.2 kg to 12.6 kg per person per year. A slight increase is also predicted for the consumption of poultry meat - a total of up to 3.7 kg of meat per person per year.

The consumption of meat and meat products already exceeds the recommended standard of the Ministry of Health (73 kilograms), but one should not talk about overeating: meat is a valuable source of all nine amino acids not synthesized by our body and most essential fatty acids. This compensates for the so far unattainable level of consumption of some other products, - says Dalnov.

The bank also predicts an increase not only in meat consumption, but also in a healthy side dish in the form of greens. According to RSHB analysts, by 2030 the production of green crops will exceed 100 thousand tons. The production of greens and salads in Russia will grow by an average of 5% per year.^[3]

2022

Growth in chicken meat output by 4.6% to 4.7 million tons

At the end of 2022, about 4.7 million tons of chicken meat were produced in Russia, which is 4.6% more than a year earlier. Production began to rise again after a slight drop (-0.2%) in 2021. This is evidenced by data from the analytical agency BusinesStat, published in early November 2023.

According to the study, in the period from 2020 to 2022. The production of chicken meat in Russia increased by 7.5%, which was facilitated by three main factors.

• increased sales in the domestic market. Against the background of a decrease in the purchasing power of the population, the sale of inexpensive types of meat, which include chicken, has increased;
• export upswing. At the same time, supplies of Russian chicken meat to China increased most significantly (from 64 thousand tons in 2019 to 130 thousand tons on average in 2020-2022);
• implementation of measures to reduce the dependence of the industry on imported supplies within the framework of the Federal Scientific and Technical Program for the Development of Agriculture, designed for 2017-2030.

However, in Russia in 2022 there was a shortage of breeding material, which hinders the development of the poultry industry. In order to solve this problem, in 2022, Russian poultry farms began to increase their self-sufficiency capacity with eggs and chickens. Cherkizovo Holding has opened 6 new chicken growing buildings, Elinar Holding has increased the number of breeding reproducers. In 2023, it became known about plans to expand production at the Northern Farm, Lindovskaya Poultry Farm, Belgrankorm, and Malkina Farm. Also, work continues to increase the capacities of Cherkizovo and Elinar. According to analysts, self-sufficiency of the country with an incubation egg from its own breeding reproducers will contribute to the growth of chicken meat production in the coming years.

^[4]

Reduction in sales of lamb in Russia by 1.9% to 121.6 thousand tons

In 2022, 121.6 thousand tons of lamb were sold in Russia, which is 1.9% less than a year earlier. Such data analysts of the BusinesStat agency were released in July 2023.

According to the researchers, the decline in real disposable incomes of the population and economic uncertainty lead to a decrease in sales of this type of meat. Analysts also cite Rosstat data, according to which lamb is the most expensive type of meat after beef. The promotion of lamb is also hindered by a very narrow assortment. More than 90% of sales are in unbranded products, experts say.

According to the study, chilled products prevail in the structure of lamb sales on the Russian market, the share of which in 2018-2022. amounted to 91.2-95.6%. Frozen lamb accounted for 4.4% to 8.8% of all sales in the years under review, respectively. Such a significant predominance of sales of chilled lamb over frozen lamb is explained by the peculiarity of the market in Russia, namely, by large volumes of production and, accordingly, sales of lamb by households and small farms, where, as a rule, there is no possibility of purchasing expensive shock freezing chambers for high-quality freezing and storage of meat. In addition, in such farms, animal slaughter most often occurs under a specific order, that is, immediately before the sale of meat.

In their review, analysts cited the following classification of lamb:

• lamb - meat of sheep (sheep), consumed as food;
• lamb - sheep meat no older than 12 months. The meat is of tender consistency, pinkish red and velvety in appearance. Carcass weight is not more than 26 kg.

According to experts, in 2022 Russia exported lamb by $0.6 million, which is almost 100% less, in 2018.^[5]

Duck meat market growth triples to 35.5 thousand tons

The Russian market for duck meat in 3 years is almost three times - from 13.7 thousand tons in 2020 to 35.5 thousand tons in 2022. This is evidenced by BusinesStat data released in July 2023.

According to analysts, the driver of the growth in sales of duck meat in 2022 was the increasing interest of Russians in non-traditional types of poultry meat for the domestic market, since the market for chicken meat traditional for the country has almost reached saturation. The rapid growth in sales in 2020-2022 is also explained by the fact that this growth was of a recovery nature. In 2019, the level of sales of duck meat was very low - 11.5 thousand tons, which is 41% less than in 2018.

In 2020-2022 The supply of duck meat on the Russian market not only recovered, but also increased relative to 2018. The production of meat of poultry ducks "Ulybino" (Novosibirsk region) and "Central" (Vladimir) began. In 2020-2022, the enterprises significantly increased their production volumes. In addition, another producer entered the Russian duck meat market: production at the production base of Donstar LLC was resumed by Damate Group of Companies, which created the New Duck Farms company for these purposes.

The additional supply volume met the corresponding solvent demand, as a result of which sales of duck meat in 2020-2022. grew at a rate of 19.3-78.6% per year. According to BusinesStat estimates, the production facilities introduced in 2020-2022 will further increase the volume of production and sales of duck meat in Russia. However, such rapid growth as in 2020-2022 should not be expected. Factors such as the high price of duck meat compared to chicken meat and competition with other types of poultry meat (turkey, goose) will have a limiting effect on sales, analysts say.^[6]

Increase in sales of semi-finished products to 4.35 million tons

Sales of meat semi-finished products in Russia in 2022 reached 4.35 million tons, which is 0.8% more than a year earlier, and 36% higher than 5 years ago (in 2018, the market volume was measured 3.21 million tons). This is evidenced by the data of BusinesStat analysts released in May 2023.

They note that in 2022, the growth in sales of meat semi-finished products in the Russian Federation became the minimum in 5 years. The declining real disposable incomes of the population have led customers to switch to a frugal consumption model, reduce purchases or switch to cheaper types of products. The decisive factor in choosing is the price of the product, promotions are increasingly popular. The long-term negative factor is also the tendency to reduce the country's population and the mass departure of Russians in 2022, which leads to a decrease in the number of buyers of meat semi-finished products, the study notes.

It also says that in 2022 in Russia there was a high level of meat consumption per capita, and the share of meat semi-finished products in the meat product market is growing mainly due to a decrease in the share of other segments of this market, such as unfilled meat and finished meat products (sausages, ham, etc.).

From 2018 to 2022 the natural volume of export supplies of meat semi-finished products from Russia decreased by 32.1%: from 24.4 to 16.5 thousand tons. In 2018-2020 exports of semi-finished meat products from Russia grew. The decrease in the indicator observed since 2021 reached the largest value in 2022 (-39.6%). The reason for such a significant drop in exports was the reduction in supplies to Ukraine: from 14.4 thousand tons in 2020 to 2.3 thousand tons in 2022, experts explain BusinesStat.^[7]

Meat consumption in Russia increased by 2.3% and reached a record level

At the end of 2022, meat consumption in Russia increased by 2.3% compared to 2021 and reached a record figure in at least 10 years - 79 kg per person per year. RBC writes about this on February 14, 2023 with reference to the presentation of the National Union of Pig Farmers.

Most Russians in 2022 consumed poultry meat - 44.3%, the total consumption of this type of meat increased by 2% compared to 2021. In 2022, residents of the Russian Federation ate an average of about 35 kg of poultry meat per person.

Dynamics of meat consumption in Russia

Pork consumption has become a record over the past 30 years - at the end of 2022, it increased by 5.9% year-on-year, to 29.8 kg per year per person. The share of pork in total meat consumption reached 37.5%. Market participants explained such a jump by the smaller type of meat among all the rise in prices for it in 2022. The market leader, according to the National Union of Pig Farmers, is the Miratorg agricultural holding, which accounts for about 12.6% of all industrial pork production in Russia.

Wholesale prices for pork products decreased by 5-7% on average over the year, and retail prices showed "no growth." The difference in price between poultry meat and pork in general in recent years was 50%, and by the end of 2022 - 20-25%. Consumption of beef and lamb in 2022 fell - by 1.9 and 7.1%, respectively.

As the head of the National Meat Association (NMA) Sergei Yushin told Interfax in February 2023, meat consumption, despite a decrease in disposable income, has constantly grown over the past seven years, having increased by about 7% over this period.

Broiler, pork and turkey remained and remain the food group's most sought-after commodities with the most attractive price-consumer mix, he claimed.[8]

Notes