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The meat market and the export’s possibilities

At the moment there is a very unfortunate situation in the segment of meat products. Trying to fill the deficit through imports as well as very limited possibilities in the matter of supply to the world markets can lead to impaired development of the country’s meat-grocery complex. About this issue read in the article “The Passions for Pork” in the new issue of the magazine “Food Promotion. Prod&Prod” in detail.

Now to speak about the Russian meat industry as about adult, developed market sector is extremely difficult, because livestock husbandry has com into downswing, a truly modern high-tech industry is creating during this moment, and many things have to start from the ground up. Measures to protect the market from an overabundance of imported goods are necessary, that is to improve the quality and competitiveness of domestic goods.

Unfortunately, at the moment there is a tendency of reducing the operating capabilities in the sector of the cattle stock. Poor maturity of this direction exacerbated last summer’s heat waves that contributed to higher prices for feeding stuff. As a result, companies activated cattle stock’s slaughter. For this reason only there has been reducing imports by 35% for the latest eleven months. At the same time, knowing proportions and complexity of existing problems, it is impossible to say that the cattle stock and meat industry are in total stagnation. For example, Hog-breeding sector of the Southern Urals is developing actively. There is a growth of production output in the field of the livestock husbandry of the Voronezh region; there is an increasing in the number of farm stock in the Trans-Baikal. Russian poultry production should be mentioned separately, today it is the most successful branches of the domestic livestock husbandry, and this trend is continuing for several years.

So what are the key trends and forecasts of the meat market? As it is stated in the article, a beef was being the leader of consumption in Russia during a long pre-crisis period. However, in recent years (since 2003 and clearly since 2006) demand for poultry meat has increased significantly. Because of the availability of this product in comparison with other, it replaced other kinds of meat. A similar trend was observing not only in Russia but worldwide also. Today crow is dominating in the meat market; it is followed by beef and only then by pork.

According to investigation of Intesco Research Group, approximately 40% of Muscovites buy chilled chicken meat once a week, almost every fifth habitant of the capital – up to three times a week, one in four – two or three times a month, and only slightly more than 8% do this once a month. Already now experts and analysts argue that the future belongs to fowl. The semi manufactures market and semi-frozen meat market is bargained for the same possibilities. This is due to a low level of consumers’ income and “dietetic” and cost advantages of the ordinary chicken. One of the important tasks of the meat industry is import substitution. Speaking about the increase in production volume, we have in mind the poultry meat first of all, then the pork, and at least the beef.

Undoubtedly, entrance to the global market require years of careful preparation. Even the highly developed economic countries import meats more than export it, because every nation has definite traditions of consumption: favorite class, and even parts of the beef carcass. But there is a free place in foreign markets for surplus of goods. And then it is not important that the Russians are continuing to make use of imported products, the main thing that the country is keeping on increasing its exports. Of course now, it is possible to assume a variety of scenarios of the meat market’s further development, especially if to take into account the complexity of the economic situation concerned with the global financial crisis. However, regardless of the alternate approaches the Russian meat food market of all kinds is very far from saturation and, as a consequence, from overproduction.

About the peculiarities of the meat market situation read in the article “The Passions for Pork” in the new issue of the magazine “Food Promotion. Prod & Prod”.