World meat industry news

Russian producers of sausages and frankfurters may face difficulties due to the shortage of food casings. Will domestic producers be able to replace imports of an important component in the near future - in the material of the FBA "Economy Today".

Europe was the main supplier of sausage casings to Russia, however, from July 10, 2022, the EU imposes a ban on the supply of artificial sausage casings made from hardened protein and cellulose materials. The restrictions will operate as part of a package of anti-Russian sanctions.

According to expert Alexander Smirnov, sausage manufacturers may indeed face problems due to the lack of protein casings, but entrepreneurs are already working to resolve this issue.

“There are indeed difficulties, since natural or protein casings are practically not produced in Russia, imports amounted to about 80%. This is an indisputable fact, of course, we will not hide it. Most imports came from Poland, Germany, France and Spain. After the ban on exports to the Russian Federation, the industry as a whole and the production of sausages, sausages, rolls in particular are under threat,” the expert says.

The EU actually accounted for almost 73% of imports of these products in physical terms: in 2021, Russia, according to the Federal Customs Service, imported about 8 thousand tons of casings worth $110 million, of which 5.9 thousand tons worth $82.7 million dollars from the European Union.

“There is no need to panic, industry representatives are already actively looking for alternative suppliers in friendly countries. In principle, there are some manufacturers in Armenia, Serbia, China and India. Perhaps the cost will somehow change, because China and India, for example, are further away than Poland. But in any case, alternative steps are already being worked out and outlined,” adds Alexander Smirnov.

Smirnov notes that Russian casing manufacturers also plan to increase production: for example, there are large factories in Rostov-on-Don and the Leningrad Region.

“Unfortunately, while domestic producers are not able to completely “close” the demand of Russian meat processing plants, but they are already going to increase their capacity. I am sure that we will replace everything with imports,” says Smirnov.

The expert believes that the range of sausage products in the Russian Federation "is unlikely to be reduced", and prices will vary solely depending on inflation.