Meat production in Russia increased by 8.6% in annual terms

In January-April, meat production in Russia increased by 27%. Although in general, the meat industry will show lower results (at cheaper prices), as experts suggest, her current experience could be used to accelerate the development of other industries.

Meat production in Russia increased by 8.6% in annual terms

Against the background of a modest growth of Russia’s industrial production in the first four months of this year by 0.5% on an annualized basis, output of meat, including offal, according to Rosstat, rose by 27% to 507 thousand tons.

Poultry production increased by 5.6% to 1.2 million tons. Issue a sausage for the period decreased by 1.2% to 485,000 tons.

As told to "guide the economy," independent analyst Alex plows meat market, pork production in large pig farms in the January-April grew even faster: about 30%, or 130 tons in carcass weight. Moreover, in the Central Federal District, where the second half of 2012 was put into operation a number of large pig farms, the growth reached 44%. The main growth came here to Belgorod, Kursk, Voronezh and Tambov region.

"Capacity of production in this area and will continue until the end of the year. Whereas in small farms, on the contrary, there was a decline in production by 20%, or almost 50 tons in carcass weight", — stated the plow.  

According to him, also continues to stagnate in Russia and beef production. The increase beef production in the agricultural barely noticeable. At the same time, the share of cattle in the total number of herds in agricultural enterprises increased to 6.4%. Slow slightly in the current year and the growth of poultry production, release of which the Russian poultry farms in January-April 2013 compared to the same period last year, increased by 8%.

"The overall investment activity in the sector remains high in the production of broiler meat, and the production of turkey meat" — said independent analyst.

At the end of 2012, we recall, meat production in Russia, including by-products increased by 8.6% yoy and amounted to 1.3 million tons. Release of poultry meat increased by 13.3% to reach 3.4 million tons. A sausage over this period has increased by 1.2% to 1.6 million tons.

At the end of the same this year, in the opinion of the President of the Russian Meat Union Mushegh Mamikonyan, pork production will increase by about 10%. And at the same time with increased output in the first place due to the commissioning of new pig farms with modern technological way of life, here there will be a drop in production at the old large enterprises and farms.

"In the absence of modernization in the past and the future does run the risk out of the market, being unable to withstand the competition today with rising prices for food and material losses due to diseases such as African swine fever" — said Mamikonyan.

He predicts that the production of poultry meat this year, obviously, to grow by 8-10%. And this is a good result in a situation already surmounted the peak growth of the industry in the past years is added 15-20% annually. However, the ability to domestic meat industry is showing today breakthrough performance in the future to become one of the points of growth to the economy of Russia?

As the President said Meat Union, while the share of industry in the national economy is not large enough. Although in the future, with the successful implementation of global international projects focused on the development of exports, it could be increased. However, the experience itself is a breakthrough of the industry, which began with the implementation of the national project in agriculture and supported then next benefit programs, of course, would be useful for the subsequent rapid development of other promising industries that can serve as the desired points of growth. Until now, by the way, a successful example of the meat industry is not sufficiently been evaluated nor journalists nor the public, nor investors, the expert said.

According to the latest figures, it can be concluded that the meat industry is now in stable condition, said, in turn, head of the company "Nexia Pacioli Consulting" Yury Bodrov. According to him, one of the main directions of development of the industry in the near future will be the production of turkey meat, whose popularity is growing every year. This will increase production in the next 5-6 years at 2-3.

"But to say that the industry may be one of the points of growth of the Russian economy, is premature. Although the changes occurring in it, according to the strengthening of positive trends, "- concluded Bodrov.

The mentioned example is also important in view of Russia’s accession to the WTO, which, in particular, turned zero import duties on pork from the previous 15% under quota and reduced from 75% to 65% on supplies in excess of quotas, which led to a sharp increase in imports meat production in the second half of the year when prices for the commodity pig by 25-30%. However, in a further increase competition among domestic producers of pork imports in the first four months decreased by 10%, pork by-products — by 35% and pork lard almost 6%, said plow. Although at the moment, he added, the wholesale price of meat are restored to last year’s level, they will not come out. Abroad, by the way, the wholesale price of pork meat is even lower. For example, in the European Union and Brazil, they are 30-40% cheaper than the Russian and the U.S. and Canada — by 50%.

"Appreciable reduction in prices for meat products in the Russian state is difficult to expect a constantly rising prices for food, petrol, loans and services," — said Yury Bodrov.

According to him, to achieve a reduced price possible in the implementation of programs with a number of banking credit limits at reduced rates, which really would be able to work in contrast to the already running in agriculture inefficient projects.

"Also, it would be reasonable to anticipate and state subsidies for farms that are used in many countries of the EU. Moreover, these issues need to be addressed at the legislative level, tightly controlling their implementation on the ground, so that the allocated money came directly to the end user," — concluded Bodrov .

Anyway, according to Mamikonyan, prices for meat production this year will remain "stable low." And by the end of 2013 may go down in value by 2%.

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