World meat industry news

A plant for slaughter and processing of lamb was launched in the North Caucasus Federal District. Now the production volumes of this type of meat in the Russian Federation are insignificant. Experts believe that the demand for lamb can grow due to increased availability and quality

At the end of September 2022, in Karachay-Cherkessia, the Damate group opened a new mutton slaughter and processing plant with a capacity of 25,000 tons per year. The enterprise was modernized for 3.4 billion rubles as part of the company's project for the production of lamb in the North Caucasus Federal District.

The Damate project, which the company has been implementing since 2018, includes a slaughterhouse, breeding and feedlots, and a service company for farmers. This company provides resource and consulting support to farms. The farms are the raw material base of the project and supply "Damata" at a pre-agreed price a certain amount of products in accordance with the specified quality requirements.

The head of the Stavropol Territory, Vladimir Vladimirov, also noted at the opening of the enterprise that the plant is located in Cherkessk, but also works for the Stavropol Territory. In particular, in the village of Achikulak in the Neftekumsky District there is a large feedlot built by Damate. In addition, farmers in the region are involved in raising livestock for the company, which creates additional income opportunities for the villagers.

niche product

As Leonid Khanukaev, the head of the Lamb direction of Damate, told RBC Kavkaz, the Damate group of companies is a producer of niche types of meat. In addition to lamb, the company develops the production of turkey and duck.

“Lamb is a niche story that is interesting to develop. Now the production volumes of this type of meat are insignificant and amount to 200 thousand tons, they are not able to satisfy the growing domestic demand. Meanwhile, this type of meat is consistently included in the basic set of products for residents of the South of Russia,” says Khanukaev.

The head of the National Meat Association, Sergei Yushin, believes that although lamb is not the most popular meat, it has been consumed and will continue to be consumed. And this figure can grow if the physical availability of the product increases.

“One of the problems is the lack of a stable supply flow to organized retail in the form of the largest chains, which also need lamb. So once physical accessibility improves, it can be delivered to a much wider geographic area,” he added.

Yushin also expressed the opinion that the development of information systems and exports makes the industry modernize and the slaughter and processing plant is the most important link.

“These plants can adapt to the needs of the market. And of course, it is important that this is a large enterprise and it produces consignments. For example, a small slaughterhouse has a lot of non-lekvid left. Something that is a pity to throw away, but also cannot be sold. Large enterprises are more preferable because they can create commodity lots, including non-food products (by-products). And for owners who are engaged in breeding small cattle, the presence of such an enterprise is a constant demand for animals. That is, a good channel for the sale of livestock appears, it is possible to conclude long-term contacts. It is important for farmers,” said the head of the association.

According to Khanukaev, the growth potential of the industry is huge. The development of companies of this production will not only satisfy the current demand for mutton and significantly increase its consumption in the next few years, but also send mutton products for export.

“We have created a production scheme, thanks to which the industry will reach a completely new technological level, the quality of lamb will increase due to active genetic work, the farmers of the region will be able to freely do their business with the support of a large producer,” said the representative of Damate Group of Companies.