World meat industry news

Over the past 5 years, the share of beef in a Russian meat plate has decreased from 20% to 18% by the end of 2021, in absolute terms, per capita consumption has decreased on average by 1 kg - up to 9 kg per person, according to a study by the National Rating Agency (NRA ), write Izvestia. And beef remains one of the import-dependent categories.

At the end of last year, according to estimates by the National Union of Pig Breeders, the share of beef on dinner tables will decrease by another 1.9% (the results have not yet been summed up). While the volume of pork and poultry will increase by 5.9% and 2% respectively. In 2021, Russians ate an average of 15 kg and 25 kg of these types of meat.

Demand for beef in large retail chains has generally been declining over the past 5 years: it is being replaced by growth in sales of pork and turkey, the chairman of the presidium of the Association of Retail Companies (AKORT) confirmed to Izvestia. In recent months, retailers have also recorded a decrease in interest in premium types, such as marbled meat and steaks. The main reason for this trend is rising prices.

"A moderately negative trend will continue in 2022 and 2023, people will continue to buy less beef. Against the backdrop of growing consumption of pork and chicken, the beef indicator may drop to 8 kg per person," the NRA said.

The trend is driven by the high price of this meat compared to other protein sources. According to Rosstat, as of January 2023, the retail price of boneless beef was 662 rubles per 1 kg, which is 59% higher than the cost of pork and 2.8 times more expensive than poultry meat. And the price gap between beef and other meat will continue to grow: NRA experts expect it to rise in price by 7% in 2023. This may happen against the backdrop of an increase in its value in the world, as well as an increase in the cost of its production.

The NRA believes that the extension of the quota for duty-free import of beef will help to contain the rise in prices this year.

As noted in the Ministry of Agriculture, at the end of January, the Eurasian Economic Commission set a quota for beef at the level of 100 thousand tons for 2023 - this is the volume that can be imported with zero customs duty. Such a measure will provide processors with the necessary volume of raw materials.

"At the same time, the Ministry of Agriculture is actively stimulating the development of domestic beef production. A wide range of state support measures are provided for this. For example, a new subsidy for the production of cattle for slaughter has been in effect since 2023," the ministry stressed.