World meat industry news

According to the results of the current year, the gross agricultural production in the country will increase by 5.5-6% compared to 2021. This forecast was announced by Dmitry Rylko, Director General of the Institute for Agricultural Market Studies (IKAR). The main drivers of positive dynamics will be grains and oilseeds, the harvests of which will be record-breaking. IKAR also expects an increase in pork production. “Most of the other industries will also show growth, though not much. A clear negative trend is likely to be shown by the beef segment — at the end of the year, its output is likely to decrease,” says Rylko.

The expert also draws attention to the results obtained by potato producers: although they will not have a significant increase in gross harvest compared to last year, the quality of products is significantly higher than in 2021. In mid-November, First Deputy Minister of Agriculture Oksana Lut said that already this year Russia could achieve food security in terms of potatoes or come close to the desired indicator - 95%.

According to Rylko, this year is more difficult than the previous one, since almost all crop growers saw a rather serious drop in margins, including due to the direct and indirect impact of sanctions. “To a large extent due to indirect sanctions, the first three months of the new season were not very successful for grain exports,” he adds. At the same time, there was a significant rise in the cost of agricultural machinery and spare parts. In addition, many enterprises in the agricultural sector have worsened problems with personnel. “It is still difficult to predict how the situation will develop further,” Rylko notes.

According to the forecast of the Ministry of Agriculture, at the end of the year, the agricultural sector can grow by 3.5% after a decline of 0.4% in 2021, the head of the department Dmitry Patrushev said on November 21, reporting on the situation in the industry. “In general, our food market is fully provided with our own oil and fat, meat, fish products, sugar and pasta, cereals and many other types of goods. For all these positions, over the nine months of this year, we are seeing an increase in production volumes. And of course, we expect the positive trend to continue,” the minister said.

According to the preliminary estimate of Rosstat, in January-October, agricultural production increased by 5% compared to the same period last year and amounted to 7.2 trillion rubles.